Vietnam Issues New Work Permit Regulations for Foreign Employees

Posted by Reading Time: 3 minutes

HANOI – The Vietnamese government has recently released a new Circular on the procedures a foreign worker must adhere to in order to be considered for a work permit.  Circular 03/2014 tightens the regulations for foreign workers seeking to come to Vietnam.

The Circular will take effect on March 10, 2014 and is intended to help guide the implementation of the proposed Government Decree 102/2013.

Professional Service_CB icons_2015RELATED: Dezan Shira & Associates’ Payroll and Human Resources Services

It appears that the new regulations are intended to help Vietnam’s government reduce the country’s unemployment level by managing the employment of foreign workers more efficiently. However, it remains to be seen what impact the new laws will have on the wider economy.  Foreign workers and foreign investment are playing an increasingly larger role in Vietnam’s economy and any move that seems to discriminate against foreigners could have the unintended effect of driving these people, and their money, to nearby countries such as Indonesia and the Philippines.

RELATED: Indonesia and the Philippines More Attractive for Foreign Investors

The main thrust of the Circular requires companies looking to hire a foreign worker to submit a recruitment plan to the local Department of Labour, War Invalids and Social Affairs at least 30 days before hiring any foreign worker. The submitted plan must show:

  • The existing demand for the foreign worker(s);
  • The number of foreign worker(s) to be recruited;
  • The worker(s) qualifications, titles, work experience;
  • The worker(s) salary expectations;
  • The worker(s) periods of employment (not to exceed 2 years)
  • That the worker(s) have a clean criminal record
  • Worker(s) that will take a management position must show relevant documents which prove this (e.g. Work permit or a labor contract)
  • For a worker to be considered an expert in their field, they must fulfil one of the below requirements:
    • A document proving relevant qualifications (minimum allowed is a Bachelor’s degree) and at least five years work experience in the relevant field; or
    • A document from an authorized agency that certifies the worker as an expert.
  • For a worker to be considered a technical worker, they must fulfil the below requirements:
    • Provide a document or certificate that proves the worker has received at least one year of training in the technical field; and
    • Provide paperwork that shows that the worker has at least three years work experience in the field within which he/she will work in Vietnam.

If the applying company has already submitted an application, but would like to amend it, they should do so during the 30 day application period.

RELATED: Vietnam’s Visa and Work Permit Procedures

The Circular states that, once the application is submitted, the local Department of Labour, War Invalids and Social Affairs must inform the company within 10 days as to whether the plan has been approved or not.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam in addition to alliances in Indonesia, Malaysia, Philippines and Thailand as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email vietnam@dezshira.com, visit www.dezshira.com, or download the company brochure.

You can stay up to date with the latest business and investment trends across Vietnam by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

 Related Reading

vb cover 1st effort

A Guide to Understanding Vietnam’s VAT
In this issue of Vietnam Briefing, we clarify the entire VAT process by taking you through an introduction as to what VAT is, who and what is liable, and how to pay it properly. We first take you through the basics of VAT in Vietnam before taking you deeper into the topic. Additionally, we provide updates on the new changes to the VAT process and explain how they will impact your business. The magazine is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore until the end of April.

Vietnam’s Visa and Work Permit Procedures

Vietnamese Visa Procedures Fall Short in ASEAN

Work Permit and Visa Applications in Malaysia

Work Permits and Visas in Indonesia

Vietnam, Myanmar Ease Visa Restrictions

Indonesia to Relax Tourism Visa Process

Thailand’s Political Crisis Makes Indonesia and the Philippines More Attractive for Foreign Investors

Leave a Reply

Your email address will not be published. Required fields are marked *