Nowadays, the Vietnamese market has been welcoming foreign employees to work in a variety of sectors, which requires the regulatory framework to be modified in accordance with the social reality. Therefore, on September 18th, 2023, the Government issued Decree No. 70/2023/ND-CP (“Decree 70”) amending and supplementing certain provisions of Decree No. 152/2020/ND-CP (“Decree 152”) on foreign employees working in Vietnam; the recruitment and management of Vietnamese employees working for foreign organizations and individuals in Vietnam. This Decree comes into force as of September 18, 2023.
This Decree has amended a number of regulations to suit the current market. Some notable articles are adjusted in Decree 70, specifically as follows:
- First, Decree 70 modified the requirement of work experience for foreign experts
According to Point a, Clause 3, Article 3, Decree 152 stipulates that one of the conditions for foreign labor experts is “at least 3 years of work experience in his/her training field in corresponding with the job position that he/she intends to work in Vietnam“. Decree 70 has amended this condition to “at least 3 years of work experience in corresponding with the job position that he/she intends to work in Vietnam“. This adjustment can facilitate foreign employees to work in Vietnam, especially experts who have various work experience but do not work in the correct training field.
- Adjusting the regulationson the time limit for the determination of the demand for foreignemployees
Specifically, Decree 70 has shortened the time limit for implementing procedures to determine or change the demand for foreign employees from “at least 30 days” to “at least 15 days before the date on which foreign employees are expected to be employed“. This change probably helps relevant authorities to capture information more swiftly and detect promptly violations in the recruitment of foreign employees (if any).
- Supplementing some cases in which an employer is not required to report their demand for foreignemployees
The additional cases in Decree 70 are Clauses 6 and 8, Article 154 of the Labor Code and Clauses 4,5,7,14, Article 7 of Decree 152. The supplement of cases in which employers do not have to determine the demand for foreign employees facilitate employers to recruit foreign employees more easily.
- Adjustment in Decree 70 is the provision on recruitment announcements of Vietnamese employees on regulated websites from January 1, 2024
In this Decree, employers must post recruitment notices for Vietnamese employees in expected positions to recruit foreign employees on the website of the Ministry of Labor, War Invalids and Social Affairs (Employment Department) or the website of the Employment Service Center, which is established by the President of the People’s Committee of the province. The time limit for this announcement is at least 15 days from the expected date of the explanation report. The notification content includes job position and title, job description, quantity, qualifications, experience requirements, salary, working time and location. It appears that the notification on the website ensures the information transparency and makes employees’ access to information easier.
- Additionally, the Decree 70 also stipulates an article on the declaration of a foreign employee working for one employer in more than one province and city.
Specifically, the employer must report electronically to the Ministry of Labor, War Invalids and Social Affairs and the Department of Labor, War Invalids and Social Affairs and the Department of Labor, War Invalids and Social Affairs of province where a foreign employee works if the foreign employee works for one employer in many provinces and cities. The implementation deadline is specified within 03 business days from the date the foreigner starts working. The addition of this provision ensures that competent authorities can manage information about foreign employees in their management areas.
- Decree 70 also supplemented an article on the issuance of electronic work permits. Besides the work permits on paper, Decree 70 also stipulates the issuance of electronic work permits complying with relevant legal provisions. The addition of electronic work permits facilitates employees in the process of issuing work permits.
In general, the provisions in Decree 70 are adjusted based on the reality of the Vietnamese market. It can be seen that the amendment and supplement of this Decree have considerable influences on both employees, employers and relevant authorities. This new Decree facilitates the subjects of the decree in the process of participating in labor relations in Vietnam. Furthermore, this Decree also helps Vietnamese authorities manage the workforce more conveniently.