Working overtime in Vietnam

Some basic rules about working overtime in Vietnam are:

  • Normal working time is limited to 8 hours per day and 48 hours per week.
  • The aggregate overtime should not exceed 300 hours per year.
  • Night working time is from 22:00 to 6:00.
  • Overtime payment is exempt from personal income tax.

The table below provides for the overtime rate that an employer must pay an employee if the employee is working overtime.  The rate is calculated over salary paid during normal working hour.

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Written by Nguyen Quang Vu On In

Vietnam joins the United Nations Convention on Contracts for the International Sale of Goods

In December 2015, Vietnam decided to join the United Nations Convention on Contracts for the International Sale of Goods (CISG) with effect from 1 January 2017. Vietnam reserves provisions regarding formality of contracts under Articles 11, 29 and Section II of CISG. Vietnam is an active trading country. Therefore, from a legal perspective, CISG will have major impact on all international sale of goods involving Vietnam and other countries, which are also CISG members (e.g. Japan, China, and US).

Under Commercial Law 2005, where provisions of CISG are inconsistent with the provisions of the Commercial Law 2005, the provisions of CISG will apply. Therefore, if a sale of goods contract involving a Vietnamese party does not exclude CISG expressly then CISG will presumably apply to such contract. In view of this, one more thing that lawyers practicing in Vietnam have to consider now is whether to exclude or include the provisions of CISG in cross-border sale of goods contracts. In case of inclusion, one should decide which language version of CISG should be used since CISG has many different official texts. 

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Written by Nguyen Quang Vu On In ,

List of investment conditions applicable to foreign investors in Vietnam

The Ministry of Planning and Investment (MPI) published a consolidated list of investment conditions applicable to foreign investors in Vietnam (FDI Condition List) as of 27 December 2015 in its website. For easy reference, is a consolidated list based on the information published on MPI’s website can be downloaded from here. The FDI Condition List represents a major effort of the MPI to help foreign investors to navigate a mirage of domestic laws and investment treaties which may apply to a foreign investor in Vietnam. That said, when relying on the FDI Condition List, one should take note of the following:

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Written by Nguyen Quang Vu On In ,