OFFICIAL DISPATCH

OF THE MINISTRY OF LABOUR - INVALIDS AND SOCIAL AFFAIRS NO.3245/LDTBXH-TL DATED OCTOBER 23, 2001 ON THE WAGES FOR VIETNAMESE EMPLOYEES WORKING IN THE FOREIGN-INVESTED ENTERPRISES

To: Department of Labour - Invalids and Social Affairs of Lam Dong province

In response to the Official Dispatch No.737/LDTBXH dated 27/09/2001 of Department of Labour - Invalids and Social Affairs of Lam Dong province on the recording in abstract, the Ministry of Labour - Invalids and Social Affairs has the following opinions:

1. As stipulated in the Decision No.708/1999/QD-LDTBXH dated 15/06/1999 of the Minister of Labour - Invalids and Social Affairs, all foreign-owned enterprises before 01/7/1999 applying the regulations of wages in U.S. Dollar and paid in Vietnam dong, then from 01/7/1999 onwards must convert into the provisions in Vietnam dong and resign the wages in labor contracts.

In case the foreign-owned enterprises still state wages in U.S. dollar in the labor contracts, instead of converting these wages into Vietnam dong, and pay wages in Vietnam dong at the exchange rate 13,910 Vietnam dong/1 USD are contrary to the provisions of Article 4, Decision No.53/1999/QD-TTg dated 26/03/1999 of the Prime Minister and Decision No.708/1999/QD-LDTBXH of the Minister of Labour - Invalids and Social Affairs. Therefore, the Department of Labour - Invalids and Social Affairs of Lam Dong province must require the foreign-owned enterprises to resign the wages in Vietnam dong and state in the labor contracts, not mentioning the payment for exchange rate differences.

2. For the enterprises who wish and request for further implementation of the provisions on wages in U.S. dollar stated in the labor contracts and pay wages in Vietnam dong according to the average inter-bank exchange rate announced by the State Bank of Vietnam at the time of wages payment, it must send official dispatches to the Department of Labor - Invalids and Social Affairs for determination. The enterprises that do not send written requests, must convert to provide for the salary in Vietnam dong and state in the labor contracts under the above provisions, not to prolong the situation of the enterprises’ improper provisions causing complication for the State management.

3. The foreign-owned enterprises have just converted minimum wages and other wages in U.S. dollar stated in the labor contracts into Vietnam dong, then can apply the current exchange rate higher the exchange rate of 13,910 Vietnam dong/1 USD defined in Article 4 of Decision No.708/1999/QD-BLDTBXH above, later state in the labor contracts the wages in Vietnam dong. Not mentioning the payment for exchange rate differences.

Recommend Department of Labor - Invalids and Social Affairs of Lam Dong province to guide, correct timely the foreign-owned enterprises to comply with provisions of State and send report to the Ministry of Labour - Invalids and Social Affairs.

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