Knowledge base

The Ministry of Finance clarified how to determine whether a construction-sector company qualifies as a medium-sized enterprise under Article 5.3 of Decree 80/2021/ND-CP. A medium enterprise in the construction and industrial sector must satisfy: average annual insured employees not exceeding 200 persons; AND annual revenue not exceeding VND 200 billion OR total capital not exceeding VND 100 billion (either financial criterion suffices). In the case presented: fewer than 40 insured employees, but annual revenue above VND 200 billion AND total capital above VND 127 billion - both financial thresholds exceeded. The Ministry concluded the company does not qualify as an SME under applicable law.

The Ministry of Finance answered a query about the conditions under which a contractor may be proposed for abbreviated direct appointment (chi dinh thau rut gon) after contract finalization, given that Decree 214/2025/ND-CP does not spell out such conditions explicitly as it does for ordinary direct appointment (Article 79, clause 3(c)). The response directs practitioners to Article 80 of Decree 214/2025/ND-CP for the abbreviated direct-appointment procedure, and to Article 78 of the same Decree for the eligible circumstances. The abbreviated procedure must be matched to one of the qualifying circumstances in Article 78 — there is no separate, standalone set of eligibility conditions for the abbreviated track beyond those two provisions.

The Ministry of Finance answered a query on whether insurance guarantee certificates (giay chung nhan bao hiem bao lanh) can substitute for bank guarantee letters in advance-payment bonds (bao lanh tam ung) and warranty bonds (bao lanh bao hanh) in public investment projects. For advance-payment bonds: under Article 118, clause 2 of Decree 214/2025/ND-CP and Section 13.1 of Chapters VI and VII of the E-Bidding Document template for online goods procurement (Circular 79/2025/TT-BTC), advance-payment guarantees must be issued by a credit institution or a foreign bank branch established under Vietnamese law. Insurance guarantee certificates from insurance companies therefore cannot be used for advance-payment bonds. However, a contractor may use an alternative template if the project owner approves. For warranty bonds: procurement law does not prescribe a specific warranty guarantee template, so no binding rule restricts or permits the use of insurance guarantee certificates in that context.

The Ministry of Finance clarified the bid-clarification procedure for electronic construction bid documents (E-HSDT) under the one-stage, single-envelope format: whether clarification may occur simultaneously across all evaluation stages or must follow a two-phase sequence. Under Article 30, clause 1 of Decree 214/2025/ND-CP, after bid opening contractors must clarify their bids upon the project owner's request. For key personnel and major construction equipment, clarification and supplementation apply only to the first-ranked bidder after financial evaluation. Under Article 29, clause 2, evaluation of personnel and equipment is initially based solely on commitments stated in the bid form (not attached documents), with detailed document-level evaluation occurring only after ranking. If the first-ranked bidder fails to satisfy personnel or equipment requirements after being asked to clarify and supplement or replace (up to 2 rounds per item), that bidder is disqualified, has its reputation assessed under Article 20, and has its account suspended for 3 months on the National E-Procurement System.

The Ministry of Finance provides guidance on the procurement of computers and printers for hamlets (thon/buon) to support administrative reform. The official response confirms that hamlets are not administrative units and do not fall under the equipment usage standards in Prime Minister Decision No. 15/2025/QD-TTg dated 14 June 2025. Regarding the state budget, State Budget Law No. 89/2025/QH15 provides that provincial People's Councils may determine the allocation of spending tasks between local budget levels, which may include supporting equipment procurement for hamlets if deemed appropriate. The Ministry recommends the inquirer consult the competent local authority for specific guidance.

The Ministry of Finance clarified the procedure for establishing the second business location of Cathay Life Insurance Co., Ltd. Vietnam (at 86 Tan Da Street, District 5, Ho Chi Minh City, now Cho Lon Ward) under Point c, Clause 3, Article 74 of the Insurance Business Law No. 08/2022/QH15 (as amended by Law No. 139/2025/QH15). The Ministry confirmed that under Point c, Clause 3, Article 74, opening, closing, or changing a business location only requires written notification to the Ministry of Finance within 15 days of the change. The Ministry does not issue any approval or acknowledgment document for this type of change. The insurance enterprise self-issues the decision to establish the business location without needing to register with the provincial Department of Finance. Therefore, Cathay Life Insurance's second business location establishment is fully compliant through notification alone, with no approval letter from the Ministry required.

The Law Amending and Supplementing Certain Articles of the Law on Insurance Business has been passed by the National Assembly at the 10th Session, 15th Legislature. This is an important legislative document aimed at updating and perfecting the legal framework for insurance business in Vietnam, aligned with the practical development of the insurance market and international integration. The draft law was prepared by the Ministry of Finance and reviewed by the Economic and Financial Committee of the National Assembly. This law will impact insurance business enterprises, insurance brokers, insurance agents, as well as businesses and individuals purchasing insurance. For SME businesses, the law amendments may affect the purchase of insurance for assets, professional liability, and employee insurance. Business owners should monitor the new regulations to ensure compliance and take advantage of opportunities from improved insurance products.

The Ministry of Home Affairs is drafting a Law to amend and supplement certain articles of the current Social Insurance Law. This draft is expected to be submitted and adopted at the 1st Session of the XVI National Assembly. The Committee on Culture and Society will be the lead agency for reviewing this draft law. For small and medium-sized enterprises (SMEs), amendments to the Social Insurance Law may affect obligations related to social insurance, health insurance, and unemployment insurance contributions for employees. Changes may involve contribution rates, eligible participants, employee benefits, and procedures for settling social insurance benefits. Businesses should closely monitor the draft content to prepare for adjustments to HR policies and labor cost budgets accordingly. Updating social insurance regulations is necessary to ensure employee rights and align with the current socio-economic situation. Business owners should proactively study the detailed draft when it is fully published to develop timely implementation plans, avoiding violations of labor and social insurance laws.