CIRCULAR

ON GUIDELINES FOR THE MANAGEMENT OF EMPLOYMENT, WAGES, REMUNERATION AND BONUSES PAID TO EMPLOYEES WORKING IN VIETNAM ASSET MANAGEMENT COMPANY

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

Pursuant to Decree No. 53/2013/ND-CP dated May 18, 2013 by the Government on the establishment, organization and operation of Vietnam Asset Management Company; Decree No. 34/2015/ND-CP dated March 31, 2015 and the Government's Decree No. 18/2016/ND-CP dated March 18, 2016 on amendments to Decree No. 53/2013/ND-CP dated May 18, 2015 by the Government on the establishment, organization and operation of Vietnam Asset Management Company;

Pursuant to the Government's Decree No. 51/2016/ND-CP dated June 13, 2016 on management of employees, wages, remuneration, and bonuses paid to employees in single-member limited liability companies of which charter capital is wholly owned by the State; the Government's Decree No. 52/2016/ND-CP dated June 13, 2016 on management of employees, wages, remuneration, and bonuses paid to managers in single-member limited liability companies of which charter capital is wholly owned by the State;

At the request of Director of Department of Labor and Wage;

The Minister of Labor, War Invalids and Social Affairs promulgates the Circular guiding the management of employment, wages, remuneration, and bonuses paid to employees working in Vietnam Asset Management Company.

Section 1. GENERAL PROVISIONS

Article 1. Scope

This Circular provides guidelines for the management of employment, wages, remunerations and bonuses paid to employees, the President of the Board of members, members of the Board of members, the General Director, the Deputy General Director, the Chief accountant, the Leader of the Control Board and members of the Control Board in Vietnam Asset Management Company (hereinafter referred to as VAMC).

Article 2. Regulated entities

1. Any employee working under a labor contract as prescribed in the Labor Code.

2. The President of the Board of members and members of the Board of members, the General Director, the Deputy General Director, the Chief accountant, the Leader of the Control Board and members of the Control Board.

3. Any agency, organization or individual relating to the management of employment, wages, remunerations and bonuses prescribed in this Circular.

Section 2. MANAGEMENT OF EMPLOYMENT, WAGES AND BONUSES PAID TO EMPLOYEES

Article 3. Management of employment, planned wage fund, wage rate, wage advances, realized wage funds and distribution of wages and bonuses

1. VAMC carries out the management of employment, determination of planned wage fund, wage rate, wage advances, realized wage fund and distribution of wages and bonuses to employees as prescribed in Section 2; Articles 9, 10, 13 Section 3 and Section 4 of Circular No. 26/2016/TT-BLDTBXH dated September 9, 2016 by the Ministry of Labor, War Invalids and Social Affairs on guidelines for the management of employment, wages and bonuses paid to employees in single-member limited liability companies of which charter capital is wholly owned by the State (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

2. When determining the planned average wage amount and realized average wage amount for the purpose of identifying the planned wage fund, realized wage fund as prescribed in Article 9 and Article 14 of Circular No. 26/2016/TT-BLDTBXH, VAMC shall determine the average productivity and profits as follows:

a) The average productivity (planned or realized in the mentioned year or realized in the preceding year) equals (=) difference between total revenue and total cost in the year exclusive of wages, where the difference between total revenue and total cost in the year is identified as prescribed in the Decree No. 53/2013/ND-CP dated May 18, 2013, the Government's Decree No. 34/2015/ND-CP dated March 31, 2015 and guiding documents of the Ministry of Finance on financial regime applicable to VAMC.

b) The profit (planned or realized in the mentioned year or realized in the preceding year) is replaced with the “collected debts bought with special bonds”.

Article 4. Exclusion of objective factors when determining planned and realized wage fund for employees

1. When determining planned and realized wage funds for employees, VAMC may exclude the objective factors affecting their productivity, collected money and bad debts bought with special bonds, including:

a) Objective factors prescribed in Article 11 of Circular No. 26/2016/TT-BLDTBXH.

b) The State decides to directly affect the amount of collected bad debts bought with special bonds or directly affect the purchase of bad debts and security property; adjust the ratio calculated according to the amount collected from bad debts bought by VAMC with special bonds and adjust the ratio calculated according to the remaining balance of the debts VAMC bought with special bonds.

c) VAMC provides new investments in business (excluding investments, repair and upgrading of security properties VAMC has bought for building headquarters or for lease).

2. The exclusion of objective factors specified in Clause 1 of this Article shall be carried out as follows:

a) Productivity, recovered amount of bad debts bought with special bonds affected by objective factors shall be quantified and calculated with specific figures.

b) Any objective factors decreasing (or increasing) the productivity and/or the recovered amount of bad debts bought with special bonds is eligible for the addition (or deduction) of the corresponding productivity and/or the recovered amount of bad debts bought with special bonds decreased (or increased) to the productivity standard and/or the recovery amount of bad debts bought with special bonds in the year.

c) When determining planned and realized wage fund for employees, VAMC shall re-evaluate the objective factors in comparison with those in the plan to exclude the objective factors affecting their productivity, collected money and bad debts bought with special bonds.

Section 3. MANAGEMENT OF WAGES, REMUNERATION AND BONUSES OF BOARD OF MEMBERS, GENERAL DIRECTOR, DEPUTY GENERAL DIRECTOR, CHIEF ACCOUNTANT AND THE CONTROL BOARD MEMBERS

Article 5. Determination of wages of President of the Board of members and members of the Board of members, the General Director, the Deputy General Director, the Chief accountant, the Leader of the Control Board and members of the Control Board

President of the Board of members, full-time members of Board of members, General Director, Deputy General Director, Chief accountant, Head of Control Board, and members of Control Board of VAMC shall have their wages determined in accordance with Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016 by the Ministry of Labor, War Invalids and Social Affairs on guidelines for wages, remuneration and bonuses paid to managers in single-member limited liability companies of which charter capital is wholly owned by the State (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).

Article 6. Determination of fund for wages, remuneration, bonuses and payment of wages, remuneration and bonuses

1. Planned wage/remuneration fund; realized wage/remuneration fund, bonus fund; payment of wages/remuneration, bonuses for President of the Member assembly and members of Member assembly, the General Director, Deputy General Director, Chief accountant, Leader and members of the Control Board shall be determined in accordance with regulations in Articles 3, 9, 10, 11, 12, 14, 15, 16, 17, 18 and 19 of Circular No. 27/2016/TT-BLDTBXH.

2. Requirements of determination of the fund for wages/remuneration under plan, fund for wages/remuneration for implementation specified in Clause 1 of this Article:

a) The average productivity and profits as the basis for the determination of funds for wages/remuneration and the average wages shall be calculated according to regulations in Clause 2 Article 3 of this Circular;

b) The exclusion of objective factors affecting the productivity and the recovery amount of bad debts bought with special bonds shall comply with regulations in Article 4 of this Circular.

Section 4. IMPLEMENTATION

Article 7. Implementation

1. The General Director of VAMC shall fulfill tasks prescribed in Article 17 of Circular No. 26/2016/TT-BLDTBXH.

2. Responsibilities of the Member assembly of VAMC:

a) Fulfill the tasks specified in Article 18 of Circular No. 26/2016/TT-BLDTBXH and Article 20 of Circular No. 27/2016/TT-BLDTBXH. Send the reports on wages and bonuses to the owner’s representative and the Ministry of Labor, War Invalids and Social Affairs for general supervision.

b) Determine the amount of wages/bonuses for the Leader and members of the Control Board as prescribed in this Circular and submit a part of it to pay to the owner’s representative according to the performance of each person.

3. The Leader and members of the Control Board shall conduct inspection, supervision, appraisal and shall make proposal for the management of employees, wages, remuneration, and bonuses similarly to the role of the Controller according to regulations in Article 19 of Circular No. 26/2016/TT-BLDTBXH and Article 21 of Circular No. 27/2016/TT-BLDTBXH and in accordance with Charter of organization and operation of VAMC.

4. Responsibilities of the owner’s representative of VAMC (the State Bank):

a) Fulfill the tasks specified in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH. Give statements on the annual fund for wages and bonuses to VAMC and concurrently forward them to the Ministry of Labor, War Invalids and Social Affairs for general supervision.

b) Receive, review, and give comments about the objective factors (if any) as prescribed in this Circular as the basis for VAMC to determine wage amounts paid to employees and wage and remuneration amounts paid to managers.

c) Carry out the management and assessment, pay wages, remuneration and bonuses and comply with policies applicable to the Leader and members of the Control Board of VAMC similarly to the role of the Head of Control Board and Controllers according to regulations in Article 19 of Circular No. 27/2016/TT-BLDTBXH.

Article 8. Entry in force

1. This Circular comes into force from December 10, 2016. Policies specified in this Circular shall take effect from January 1, 2016.

2. Circular No. 31/2015/TT-BLDTBXH dated August 31, 2015 of the Ministry of Labor, War Invalids and Social Affairs on guidelines for management of employment, wages, remuneration and bonuses in VAMC shall be annulled from the effective date of this Circular.

3. The full-time managers shall keep having their wages determined according to the wage levels prescribed by VAMC. After 3 years from the effective date of this Circular, VAMC shall carry out the determination of wage levels as prescribed in statutory regulations of the State.

4. VAMC shall apply the rate of meal allowance between shifts paid to employees and managers as prescribed in Clause 4, Article 22 of Circular No. 26/2016/TT-BLDTBXH and Clause 4, Article 25 of Circular No. 27/2016/TT-BLDTBXH.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Labor, War Invalids and Social Affairs for consideration