On September 18, 2023, the Government promulgated Decree 70/2023/ND-CP (“Decree 70”) amending a number of articles of Decree 152/2020/ND-CP (“Decree 152”) on foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam. According to ATA, compared to Decree 152, the provisions of Decree 70 have created more favorable conditions for enterprises in carrying out procedures to recruit foreign workers to work, specifically as follows:
1. Simplify conditions for applying for a license for foreign workers
According to Decree 70, experts and technical workers who are foreign workers only need to have a university degree or higher and at least 03 years of work experience suitable to the job position undertaken in Vietnam (foreigners may only need to work in the same or complementary majors but not the correct training major) to meet one of the license conditions. Previously, this condition was stricter when requiring 3 years of working experience of foreign workers to be in the correct field of training.
Previously, during the Covid-19 pandemic, the above similar regulations were applied under the Government's Resolution 105/NQ-CP dated September 09, 2021 on supporting businesses, cooperatives and business households in the context of the Covid-19 epidemic; with positive impacts from the provisions of Resolution 105, the Government has officially included this content in Decree 70.
2. Simplify procedures when applying for a work permit
- Shorten the time limit for explaining the demand or changing the demand for foreign workers before officially using from 30 days to 15 days.
- Abolition of a number of documents in the work permit application dossier, specifically:
- Criminal record card and documents proving managers, executives, experts and technical workers in case the foreign worker has been granted a work permit and has been extended once but wishes to continue working with the same job position and job title stated in the work permit.
Regarding documents proving being managers and executives, Decree 70 clearly explains the documents proving that managers and executives include the following 3 types of documents: the company's charter or operation regulations of organizations or enterprises; certificate of enterprise registration or certificate of establishment or establishment decision or other document of equivalent legal validity; resolutions or decisions on appointment of agencies, organizations or enterprises. In addition, according to Decree 70, the executive director is not only the head of a branch, representative office or business location (subordinate units of the enterprise) but also the head and directly runs at least one field of the agency or organization, enterprises and are under the direct direction and administration of heads of agencies, organizations and enterprises.
- Written approval of the need to employ foreign workers in case of application for re-issuance of work permit.
3. Centralize the focal point of management and licensing authority for foreign workers in Vietnam
Instead of allocating management and licensing authority to many different agencies such as the Ministry of Labor, War Invalids and Social Affairs, provincial People's Committees, the Department of Labor, War Invalids and Social Affairs, and the Economic Zone Industrial Park Management Board, Decree 70 focuses management and licensing authority on specialized agencies with the function of management of labor is the Ministry of Labor, War Invalids and Social Affairs and the Department of Labor, War Invalids and Social Affairs, specifically:
- The Ministry of Labor, War Invalids and Social Affairs has the authority to approve the employment of foreign workers and grant work permits to foreign workers in the following cases:
- The employee works for one employer in many provinces or centrally-run cities;
- The employee working for the employer is an international organization, the office of the foreign project in Vietnam; agencies, organizations, representative offices, branches of enterprises, agencies and organizations (including political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, foreign non-governmental organizations, etc non-business organizations and educational institutions) permitted by the Government, the Prime Minister, ministries, ministerial-level agencies and agencies attached to the Government.
- The Department of Labor, War Invalids and Social Affairs has the authority to approve the employment of foreign workers and grant work permits to foreign workers in the following cases:
- Foreign workers working for employers at multiple locations in the same province or centrally-run city;
- Employees working for employers are enterprises, contractors, executive offices of foreign investors or contractors, legal practice organizations, cooperatives, business households, business individuals and agencies and organizations organized by the provincial People's Committee, specialized agencies under the provincial People's Committee, District People's Committee established.
The above regulations help licensing and management to be centralized, more convenient for businesses and also help improve the efficiency of the management of foreign workers in Vietnam.
Decree 70 takes effect from September 18, 2023. For the report explaining the need to employ foreign workers, the dossier of request for confirmation is not eligible for work permit issuance; issuance, re-issuance and renewal of work permits submitted by foreign employers to competent authorities before September 18, 2023 shall apply in accordance with relevant regulations.
Comment: