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Business Overview and Performance Corporate Governance Financial Statements Enclosure

for Vietnamese families or persons). The duration rules hired for a specified period of time, for a seasonal
also apply to enterprises invested by foreigners. period or for certain work for less than 12 months can
When the period of land usage/rental comes to an end, be cancelled unilaterally by their employers before
the state considers extension of the period if the land the contract expires-pursuant to Clause 1 Article 37 of
users intend to continue using the land plots and have the 2012 Labour Code. However, under the Labour
complied with the following conditions: (a) Having Code of 2019, employees have the right to cancel their
strictly followed the law on land during their usage; and employment contract unilaterally before the contract
(b) Use of land has complied with relevant land zoning. expires, without having to state the reason, for as long as
However, during that period, the government has they inform their employers in advance in accordance
the lawful right to recall the land plots for the purposes with the conditions stated in their employment contracts.
of national defense and security, public interest, or
economic development. 10. Vietnam’s Regulations on Environment

9. Labour Code of Vietnam The Law on Protection of Environment No. 55/2014/QH13
approved by the Vietnamese National Assembly on
On 18 June 2012, the National Assembly of Vietnam 23 June 2014-sets the general legal framework for
issued the country’s Labour Code (the “Labour Code”). protection of the environment in Vietnam, as well as
Also, the government and the Ministry of Labour, the right and duty of persons and organizations regarding
Invalids and Social Welfare legislated different rules protection of the environment. This law’s objective is
and regulations in line with the Labour Code, including to limit negative environmental impacts, restoration
ones involving employment contracts. from environmental incidents, pollution and erosion,
environmental rehabilitation, and also to support
Under the relevant rules issued in compliance to the proper usage of natural resources.
the Labour Code, an employment contract must
be done in writing and signed by the employee and Before 1 January 2015, project owners were required to
the company’s legal representative-except temporary prepare (1) an environmental impact assessment report
work lasting less than three months. An employment (EIAR) or environmental protection undertaking (EPU)
contract must include the followings: Names of before starting the project. And from 1 January 2015
the employer and the employee, the scope of work onwards, they are required to prepare an environmental
and job description, work time and break, wage protection plan (EPP), depending on the type and
or salary and method of payment, place of work, size of the project involved.
period of the contract, conditions for promotion and
wage increase, terms on sanitation and labor safety, A project to build a supermarket or any commercial/
health insurance and social security, as well as training shopping centre with the first floor’s area larger than 20,000
and skill development. The employment contract may square metres requires preparation of an environmental
contain no exact length of time, or it may set a period impact assessment. In case the project’s first-floor area
from 12 months to 36 months, or set a seasonal or measures between 10,000 and 20,000 square metres,
temporary period lasting less than 12 months. an environmental protection plan is required.

On 20 November 2019, a new labour law was promulgated Environmental impact assessments need an approval
and came into force from 1 January 2021 (“legal code”). from a provincial committee of people, the Ministry of
Under the 2019 Vietnamese code of law, there are Natural Resources and Environment, and other ministries
two types of labour employment contracts-one empowered to regulate such projects.
involving employment lasting no more than 36 months
and one for employment with an indefinite period Prior to 1 January 2015, obligations on environment
of time. Since 2021, the employment contract for protection had to be registered with and acknowledged
a seasonal or temporary period lasting less than by a district-level committee of people or a community-level
12 months has been cancelled under the current committee of people (that is authorised by a district-level
Labour Code. Employment contracts for employees committee of people). However, from 1 January 2015

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