Consolidated Document number 464/VBHN-BLDTBXH guiding labor, wages, remuneration, and bonuses in the Asset Management Corporation of Vietnam's Credit Institutions (VAMC)

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation

Circular No. 37/2016/TT-BLDTBXH dated October 25, 2016, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation, which took effect from December 10, 2016, has been amended and supplemented by:

1. Circular No. 04/2018/TT-BLDTBXH dated June 22, 2018, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation, which took effect from August 15, 2018.

2. Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024, issued by the Minister of Labor, Invalids, and Social Affairs, amending and supplementing ten circulars guiding the implementation of labor management, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, the Vietnam Asset Management Corporation, Vietnam Television, Local Investment Development Funds, State Capital Investment Corporation, Small and Medium Enterprise Credit Guarantee Fund, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Support Development Fund, and guiding labor management, wages, remuneration, and bonuses for the Vietnam Bond Trading Corporation Limited Liability Company, which took effect from December 29, 2024.

Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No. 53/2013/NĐ-CP dated May 18, 2013, of the Government, on the establishment, organization, and operation of the Vietnam Asset Management Corporation; Decree No. 34/2015/NĐ-CP dated March 31, 2015, and Decree No. 18/2016/NĐ-CP dated March 18, 2016, of the Government, on the establishment, organization, and operation of the Vietnam Asset Management Corporation;

Pursuant to Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government, stipulating the management of labor, wages, and bonuses for employees working in limited liability companies wholly owned by the state; Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government, stipulating wages, remuneration, and bonuses for managers of limited liability companies wholly owned by the state;

At the proposal of the Director of the Department of Labor and Wages;

The Minister of Labor, Invalids, and Social Affairs issues this Circular guiding the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Corporation[1].

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees, Chairman of the Board of Members, Board of Members members, General Director, Chief Accountant, Head of Supervisory Board, and Supervisory Board members in the Vietnam Asset Management Corporation (hereinafter referred to as VAMC).

Article 2. Applicability

1. Employees working under labor contracts as prescribed in the Labor Code.

2. Chairman of the Board of Members, Board of Members members, General Director, Deputy General Director, Chief Accountant, Head of Supervisory Board, and Supervisory Board members.

3. Agencies, organizations, and individuals related to the management of labor, wages, remuneration, and bonuses as stipulated in this Circular.

Section 2. LABOR MANAGEMENT, WAGES, AND BONUSES FOR EMPLOYEES

Article 3. Labor management, planned wage fund, unit wage rate, advance payment of wages, actual wage fund, wage distribution, and bonuses

1. VAMC shall implement labor management, determine the planned wage fund, unit wage rate, advance payment of wages, actual wage fund, wage distribution, and bonuses for employees in accordance with the provisions of Section 2; Articles 9, 10, and 13 of Section 3 and Section 4 of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of labor management, wages, and bonuses for employees working in state-owned joint-stock companies with 100% state capital (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

2. When determining the average planned wage and the actual average wage level to calculate the planned wage fund and the actual wage fund as prescribed in Articles 9 and 14 of Circular No. 26/2016/TT-BLDTBXH, VAMC shall determine the average labor productivity index as profit as follows:

a) The average labor productivity index (planned or realized in the year or realized in the immediately preceding year) is calculated based on the total revenue minus total expenses excluding wages, where the total revenue and total expenses are determined in accordance with Decree No. 53/2013/NĐ-CP dated May 18, 2013, Decree No. 34/2015/NĐ-CP dated March 31, 2015, issued by the Government, and the guidance of the Ministry of Finance regarding the financial regime for VAMC.

b)[2] The profit index (planned or realized in the year or realized in the immediately preceding year) is replaced by the revenue-expenditure difference index (total revenue minus total expenses).

Article 3a. Wage Scale, Payroll, and Allowances

VAMC shall establish the wage scale, payroll, and allowances for employees in accordance with Article 9a of Circular No. 26/2016/TT-BLDTBXH, which has been supplemented by Clause 3 of Article 1 of Circular No. 06/2024/TT-BLDTBXH dated July 30, 2024, issued by the Minister of Labor, Invalids, and Social Affairs amending and supplementing certain articles of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids, and Social Affairs guiding the implementation of labor management, wages, and bonuses for employees working in state-owned joint-stock companies with 100% state capital, and Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids, and Social Affairs guiding the implementation of the wage system, remuneration, and bonuses for managers of state-owned joint-stock companies with 100% state capital (hereinafter referred to as Circular No. 06/2024/TT-BLDTBXH).

Article 4. Exclusion of Objective Factors When Determining the Planned Wage Fund and Actual Wage Fund for Employees

1. When determining the planned wage fund and actual wage fund for employees, VAMC shall exclude objective factors affecting labor productivity and revenue-expenditure differences, including:

a) The impact of objective factors stipulated in Article 11 of Circular No. 26/2016/TT-BLDTBXH.

b) The State has made decisions that directly affect the revenue-expenditure difference index or directly affect the purchase or sale of non-performing debts and collateral; regulations on the ratio based on the amount recovered from non-performing debts purchased by VAMC through special bonds and the ratio based on the remaining balance at the end of the period of non-performing debts purchased by VAMC through special bonds, leading to the amount received from these sources not being sufficient to cover VAMC's costs in purchasing, handling, and managing non-performing debts purchased through special bonds. [5]

c) VAMC implements new investments for business activities (excluding investments, repairs, and upgrades of collateral assets for non-performing debts already purchased by VAMC to be converted into office premises or for rental purposes).

2. The exclusion of objective factors as prescribed in Clause 1 of this Article shall be carried out according to the following principles:

a) Labor productivity and revenue-expenditure differences affected by objective factors must be quantified and calculated using specific data.

b) Objective factors reducing (or increasing) labor productivity and revenue-expenditure differences shall be added (or deducted) from the corresponding reduction (or increase) in labor productivity and revenue-expenditure differences in the annual index.

c) When determining the actual wage fund, VAMC must reassess the implementation of objective factors against the plan to exclude their impact on labor productivity and revenue-expenditure differences.

Mục 3. MANAGEMENT OF SALARIES, FEES, AND BONUSES FOR BOARD MEMBERS, GENERAL MANAGERS, DEPUTY GENERAL MANAGERS, CHIEF ACCOUNTANTS, AND SUPERVISORY BOARD MEMBERS

Article 5. Classification of Salaries for the Chairman of the Board of Members, Dedicated Board Members, General Manager, Deputy General Manager, Chief Accountant, Head of the Supervisory Board, and Supervisory Board Members

The Chairman of the Board of Members, Dedicated Board Members, General Manager, Deputy General Manager, Chief Accountant, Head of the Supervisory Board, and Supervisory Board Members of VAMC shall be classified according to the provisions set forth in Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the implementation of salary, fee, and bonus systems for managers of state-owned limited liability companies with 100% state capital (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).

Article 5a. Establishment of Salary Scales

The Board of Members of VAMC shall establish and issue salary scales for the Chairman of the Board of Members, Board Members, General Manager, Deputy General Manager, Chief Accountant, Head of the Supervisory Board, and Supervisory Board Members in accordance with Article 4 of Circular No. 27/2016/TT-BLDTBXH, which has been amended by Clause 3 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

Article 6. Determination of Salary, Fee, and Bonus Funds and Payment of Salaries, Fees, and Bonuses

1. The determination of planned salary and fee funds, actual salary and fee funds, bonus funds, and payment of salaries, fees, and bonuses for Board Members, General Manager, Deputy General Manager, Chief Accountant, Head of the Supervisory Board, and Supervisory Board Members shall be carried out in accordance with Articles 3, 9, 10, 11, 12, 14, 15, 16, 17, 18, and Article 19 of Circular No. 27/2016/TT-BLDTBXH.

2. When determining planned salary and fee funds and actual salary and fee funds as stipulated in Clause 1 of this Article, VAMC shall implement the following provisions:

a) Average labor productivity indicators and profits shall serve as the basis for determining salary and fee funds and average salary levels, in accordance with Clause 2 of Article 3 of this Circular;

b)[6] The exclusion of external factors affecting labor productivity and revenue-expenditure discrepancies shall be implemented in accordance with Article 4 of this Circular,.

Mục 4. IMPLEMENTATION PROVISIONS[7]

Article 7. Implementation Organization

1. The General Manager of VAMC shall be responsible for performing the tasks specified in Article 17 of Circular No. 26/2016/TT-BLDTBXH.

2. The Board of Members of VAMC shall be responsible for:

a) Performing the tasks specified in Article 18 of Circular No. 26/2016/TT-BLDTBXH and Article 20 of Circular No. 27/2016/TT-BLDTBXH. When submitting salary and bonus reports to the agency representing the owner, they shall simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring, inspection, and supervision.

b) Determining the salary and bonus amounts for the Head of the Supervisory Board and Supervisory Board Members in accordance with this Circular and remitting them to the agency representing the owner for payment based on the level of task completion by each individual.

3. The Head of the Supervisory Board and Supervisory Board Members shall be responsible for inspecting, supervising, reviewing, and recommending matters related to labor management, salaries, fees, and bonuses as prescribed for the position of Supervisor in Article 19 of Circular No. 26/2016/TT-BLDTBXH and Article 21 of Circular No. 27/2016/TT-BLDTBXH, and in accordance with the Charter of Organization and Operation of VAMC.

4. The agency representing the owner of VAMC (State Bank of Vietnam) shall be responsible for:

a) Performing the tasks specified in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting opinions to VAMC regarding annual salary and bonus funds, they shall simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.

b) Receiving, reviewing, and providing comments on external factors (if any) as stipulated in this Circular, serving as the basis for VAMC to determine employee salaries and managerial salaries and fees.

c) Organizing the management, evaluation, payment of salaries, fees, and bonuses, and implementing systems for the Head of the Supervisory Board and Supervisory Board Members of VAMC as prescribed for the positions of Head of the Supervisory Board and Supervisor in Article 19 of Circular No. 27/2016/TT-BLDTBXH.

Article 8. Effective Date

1. This Circular shall take effect from December 10, 2016. The systems prescribed in this Circular shall be applied from January 1, 2016.

2. Circular No. 31/2015/TT-BLDTBXH dated August 31, 2015, issued by the Ministry of Labor, Invalids, and Social Affairs, guiding labor management, salaries, fees, and bonuses in the Asset Management Corporation of Credit Institutions of Vietnam shall cease to be effective from the date this Circular takes effect.

3. Specialized managers shall continue to be classified according to the VAMC classification. Three years after the date this Circular takes effect, VAMC shall implement the general national classification system.

4. VAMC shall apply meal allowance rates for employees and managers as stipulated in Clause 4, Article 22 of Circular No. 26/2016/TT-BLDTBXH and Clause 4, Article 25 of Circular No. 27/2016/TT-BLDTBXH.

During the implementation process, if there are any difficulties, agencies and units are requested to report to the Ministry of Labor, Invalids, and Social Affairs for timely supplementary guidance.

[1] (i) Circular No. 04/2018/TT-BLDTBXH dated June 22, 2018, issued by the Minister of Labor, Invalids, and Social Affairs, amending certain articles of Circular No. 37/2016/TT-BLDTBXH dated October 25, 2016, guiding labor management, salaries, fees, and bonuses in the Asset Management Corporation of Credit Institutions of Vietnam, is based on the following grounds:

"Pursuant to Decree No. 14/2017/NĐ-CP dated February 17, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No. 53/2013/NĐ-CP dated May 18, 2013 of the Government on the establishment, organization, and operation of the Vietnam Asset Management Company; Decree No. 34/2015/NĐ-CP dated March 31, 2015 and Decree No. 18/2016/NĐ-CP dated March 18, 2016 of the Government amending and supplementing certain articles of Decree No. 53/2013/NĐ-CP dated May 18, 2013 of the Government on the establishment, organization, and operation of the Vietnam Asset Management Company;

Pursuant to Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government stipulating labor management, salary, and bonus for employees working in a limited liability company wholly owned by the State; Pursuant to Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating salary, remuneration, and bonus for managers of a limited liability company wholly owned by the State;

At the proposal of the Director of the Directorate of Labor Relations and Wages;

The Minister of Labor, Invalids, and Social Affairs promulgates this Circular amending certain provisions of Circular No. 37/2016/TT-BLĐTBXH dated October 25, 2016 guiding the management of labor, wages, remuneration, and bonuses in the Vietnam Asset Management Company.

(ii) Circular No. 12/2024/TT-BLĐTBXH dated November 14, 2024 of the Minister of Labor, Invalids, and Social Affairs amending and supplementing ten Circulars guiding the implementation of labor management, wages, remuneration, and bonuses for the Deposit Insurance Corporation of Vietnam, the Vietnam Asset Management Company, Vietnam Television, Local Investment Development Fund, State Capital Investment Corporation, Credit Guarantee Fund for Small and Medium Enterprises, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Limited Liability Company for Debt Purchase (hereinafter referred to as Circular No. 12/2024/TT-BLĐTBXH), which shall take effect from December 29, 2024, based on the following grounds:

Pursuant to Decree No. 62/2022/NĐ-CP dated September 12, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government stipulating labor management, salary, and bonus for employees working in a limited liability company wholly owned by the State;

Pursuant to Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating salary, remuneration, and bonus for managers of a limited liability company wholly owned by the State;

Pursuant to Decree No. 21/2024/NĐ-CP dated February 23, 2024 of the Government amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government stipulating labor management, salary, and bonus for employees working in a limited liability company wholly owned by the State and Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating salary, remuneration, and bonus for managers of a limited liability company wholly owned by the State;

Pursuant to Decree No. 129/2020/NĐ-CP dated October 27, 2020 of the Government on the functions, tasks, and operational mechanism of the Vietnam Limited Liability Company for Debt Purchase;

At the proposal of the Director of the Directorate of Labor Relations and Wages;

The Minister of Labor, Invalids, and Social Affairs promulgates this Circular amending and supplementing ten Circulars guiding the implementation of labor management, wages, remuneration, and bonuses for the Deposit Insurance Corporation of Vietnam, the Vietnam Asset Management Company, Vietnam Television, Local Investment Development Fund, State Capital Investment Corporation, Credit Guarantee Fund for Small and Medium Enterprises, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Limited Liability Company for Debt Purchase.

[2] This point has been amended according to Clause 1, Article 1 of Circular No. 04/2018/TT-BLĐTBXH, effective from August 15, 2018.

[3] This is added pursuant to Clause 1, Article 2 of Circular No. 12/2024/TT-BLDTBXH, effective from November 14, 2024.

[4] This is amended pursuant to Clause 2, Article 1 of Circular No. 04/2018/TT-BLDTBXH, effective from August 15, 2018, and Clause 2, Article 2 of Circular No. 12/2024/TT-BLDTBXH, effective from November 14, 2024.

[5] The segment "adjusting the ratio based on the amount recovered from non-performing debts purchased by VAMC through special bonds; adjusting the ratio based on the remaining balance at the end of the period of debts purchased by VAMC through special bonds" is amended to "specifying the ratio based on the amount recovered from non-performing debts purchased by VAMC through special bonds and the ratio based on the final remaining balance of debts purchased by VAMC through special bonds leading to the amount received according to these ratios not being sufficient to cover VAMC's costs in purchasing, handling, and managing non-performing debts purchased through special bonds" pursuant to Clause 2, Article 2 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[6] This point is amended pursuant to Clause 3, Article 1 of Circular No. 04/2018/TT-BLDTBXH, effective from August 15, 2018.

[7] Article 11 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024, provides as follows:

"Article 11. Effectiveness of Implementation

1. This Circular takes effect from December 29, 2024.

2. The provisions regarding the wage fund, salary, remuneration, and bonuses stipulated in Clause 3 and Clause 4, Article 1, Clause 2, Article 2, Clauses 2, 3, 4, 5, and 6, Article 3, Clauses 2 and 3, Article 4, Clause 2, Article 5, Clauses 2 and 3, Article 6, Clauses 2 and 3, Article 7, Clauses 1 and 2, Article 8, Clauses 1 and 3, Article 9, and Clause 2, Article 10 of this Circular shall be applied from January 1, 2024.

3. The provisions concerning the establishment of wage scales, pay grades, and job classification stipulated in Clause 1, Article 1, Clauses 1 and 3, Article 2, Clauses 1 and 2, Article 4, Clause 1, Article 5, Clauses 1 and 2, Article 6, Clause 1, Article 7, Clause 1, Article 8, and Clauses 1 and 2, Article 9 of this Circular shall be implemented from April 10, 2024.

4. The contents stipulated in the Circulars referred to in Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 of this Circular under Section 2, Article 9, and Article 11 of Circular No. 26/2016/TT-BLDTBXH and Section 2, Article 11, Article 13, Article 20, and Article 22 of Circular No. 27/2016/TT-BLDTBXH shall be referred to according to the corresponding contents that have been amended and supplemented in Circular No. 06/2024/TT-BLDTBXH.

5. In cases where the referenced documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the newly issued documents.”