We would like to provide you with important updates regarding Decree 70/2023/NĐ-CP issued on September 18, 2023, amending and supplementing certain provisions of Decree No. 152/2020/ND-CP. This decree marks a significant step in the management of foreign laborers in Vietnam, with key improvements as follows:
1. Experts are foreign laborers falling into one of the following cases:
- Graduated from university or higher or its equivalent.
- Have at least 3 years of relevant work experience for the position they intend to work in Vietnam.
(Decree No. 152/2020/NĐ-CP, prior to the amendment, required “at least 3 years of work experience in the relevant field of study.”)
Now, Decree No. 70/2023/NĐ-CP has been amended to only require foreign workers to have work experience relevant to the position they intend to undertake, without the need for it to be related to their trained field of study.
2. Chief Executive Officer is a person falling into one of the following cases:
a) The head of a branch, representative office, or business location of an enterprise.
b) The head of and directly responsible for managing at least one sector of an agency, organization, or enterprise, and subject to the direct direction and management of the head of the agency, organization, or enterprise.
Decree No. 152/2020/NĐ-CP prior to the amendment
“The Chief Executive Officer (CEO) is the person at the top who directly manages the subordinate unit of an agency, organization, or enterprise.”
Now, Decree No. 70/2023/NĐ-CP has been amended to include additional cases where the Chief Executive Officer may belong to, as listed in points a) and b)
3. Technical workers are foreign laborers falling into one of the following cases:
They have been trained for at least 1 year and have a minimum of 3 years of relevant experience for the position they intend to work in Vietnam.
(Decree No. 152/2020/NĐ-CP, prior to the amendment: “They have been trained in technical or other fields for at least 01 year and have worked for at least 03 years in the trained field.)
Now, Decree No. 70/2023/NĐ-CP has been amended to remove the requirement for technical workers to have specialized training. Instead, technical workers need to have the necessary experience, allowing them to work in various technical fields.
4. Determination of the need for foreign labor usage:
a) At least 15 days before the intended use of foreign laborers, employers (excluding contractors) are responsible for determining the need for foreign laborers for each position that Vietnamese laborers cannot fulfill and reporting the rationale to the Ministry of Labor, War Invalids, and Social Affairs or the Department of Labor, War Invalids, and Social Affairs in the location where foreign laborers are intended to work, using Form No. 01/PLI in Appendix I issued with this Decree.
During the implementation, if there are changes in the need for foreign laborers regarding position, job title, work format, quantity, or location, employers must report to the Ministry of Labor, War Invalids, and Social Affairs or the Department of Labor, War Invalids, and Social Affairs, using Form No. 02/PLI in Appendix I issued with this Decree, at least 15 days before the intended use of foreign laborers.
(Decree No. 152/2020/NĐ-CP (prior to the amendment): Required employers to determine the need for foreign laborers or report changes in the need for foreign laborers regarding position, job title, work format, quantity, or location at least 30 days before the intended use of foreign laborers.)
Now, Decree No. 70/2023/NĐ-CP has been amended to reduce this notification period to 15 days.
5. Announcement of Vietnamese Labor Recruitment:
Starting from January 1, 2024, the announcement of the recruitment of Vietnamese workers for positions intended for foreign laborers is to be carried out on the electronic information portal of the Ministry of Labor, War Invalids, and Social Affairs (Job Center) or the electronic information portal of the Job Service Center established by the Chairperson of the People’s Committee of a centrally-affiliated province or city, at least 15 days from the date of the intended report to the Ministry of Labor, War Invalids, and Social Affairs or the Department of Labor, War Invalids, and Social Affairs in the location where foreign laborers are intended to work. The announcement should include information about the position and job title, job description, quantity, educational and experience requirements, salary level, working hours, and location.
After being unable to recruit Vietnamese laborers for positions intended for foreign laborers, employers are responsible for determining the need for foreign laborers as specified in point a) Clause 1 of this Article (determining the need for foreign laborers).
Decree No. 152/2020/NĐ-CP, prior to the amendment: Not specified)
Thus, Decree No. 70/2023/NĐ-CP has been supplemented and amended to reduce the notification period for the need for foreign laborers from 30 days to 15 days and to ntroduce provisions for the announcement of the recruitment of Vietnamese workers on the electronic information portal starting from January 1, 2024.
6. Additional cases exempt from explaining the need for Foreign Labor usage:
- Foreign lawyers who have been granted a practicing certificate in Vietnam in accordance with the Law on Lawyers.
- Foreigners married to Vietnamese citizens and residing within Vietnamese territory.
- Those entering Vietnam to provide specialized and technical consulting services or perform other tasks serving research, construction, assessment, monitoring, and evaluation, management, and implementation of programs and projects using official development assistance (ODA) funds as regulated or agreed upon in international agreements on ODA signed between Vietnam’s competent authorities and foreign countries.
- Those granted a permit by the Ministry of Foreign Affairs to operate information and press activities in Vietnam in accordance with the law.
- Volunteer workers as defined in Clause 2, Article 3 of this Decree.
(Decree No. 152/2020/NĐ-CP, prior to the amendment: Did not list cases exempt from explaining the need for foreign labor usage)
Thus, Decree No. 70/2023/NĐ-CP has expanded the scope of exemptions from explaining the need for foreign labor usage.
7. Listing of all work locations using Form No. 11/PLI in Appendix I issued with Decree 70/2023/NĐ-CP:
In cases where a foreign worker is employed by one employer in multiple provinces or centrally-affiliated cities, within 3 working days from the date the foreign worker starts working, the employer must report through the electronic system to the Ministry of Labor, War Invalids, and Social Affairs and the Department of Labor, War Invalids, and Social Affairs in the location where the foreign worker is working, using Form No. 17/PLI in Appendix I issued with this Decree.
(Decree No. 152/2020/NĐ-CP, prior to the amendment: Not specified
Decree No. 70/2023/NĐ-CP has now added provisions regarding foreign workers working for one employer in multiple locations, emphasizing the responsibility of employers when they have foreign workers working in various locations within the country.
8. Documents proving to be Managers or Chief Executive Officers include 3 types of documents:
- Company charter or regulations of the agency, organization, or enterprise.
- Business registration certificate or establishment certificate or equivalent legal documents.
- Resolutions or decisions on appointment by the agency, organization, or enterprise.
(Decree No. 152/2020/NĐ-CP, prior to the amendment: Did not specify these 3 types of documents)
Decree No. 70/2023/NĐ-CP has now extended the requirement to specify these 3 types of documents as proof of being managers or chief executive officers.
9. Application for a New Work Permit for Foreign Workers who are Experts or Technical Workers and have been granted a Work Permit and its extension once:
For foreign workers who are experts or technical workers and have been granted a work permit and its extension once, but have a need to continue working in the same job position and job title as indicated in the work permit, the application for a new work permit must include the following documents:
- Work Permit Application Form (Form 11PLI)
- Health examination certificate
- Two photos
- Position approval
- Certified true copy of passport
- Relevant documents related to the foreign worker
- Certified true copy of the previously issued work permit.
(Decree No. 152/2020/NĐ-CP, prior to the amendment: Not specified)
Decree No. 70/2023/NĐ-CP has added provisions regarding the application for a new work permit, including the listed documents, for foreign workers who are experts or technical workers and have been granted a work permit and its extension once, but wish to continue working in the same job position and job title.
10. Cases of reissuing Work Permits:
In cases where there is a change in one of the following details: name, nationality, passport number, workplace, or a change in the enterprise’s name without changing the enterprise’s identification number as recorded in the work permit, the work permit can be reissued if it is still valid.
(Decree No. 152/2020/NĐ-CP, prior to the amendment: Only mentioned changes in name, nationality, passport number, or workplace recorded in the work permit if it is still valid)
Decree No. 70/2023/NĐ-CP has added a new provision, which is “changing the enterprise’s name without changing the enterprise’s identification number as recorded in the work permit if it is still valid,” as a condition for reissuing a work permit.
Conclusion
We hope that the information in this newsletter has provided you with an overview of the important adjustments made in Decree No. 70/2023/NĐ-CP, which amends and supplements certain provisions of Decree No. 152/2020/NĐ-CP regarding foreign workers in Vietnam, as well as the recruitment and management of Vietnamese workers working for foreign organizations and individuals in Vietnam. We recommend that you stay updated on related updates regarding foreign labor regulations in Vietnam and ensure full compliance with these new provisions.
To assist businesses with foreign labor in staying informed about the new regulations and to address any questions for proper compliance, please feel free to contact us using the information below. We are always ready to support you in adapting to these changes.
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