According to the Decree No. 70/2023/ND-CP which came into force from 18 September 2023, the major changes on hiring foreigners in Vietnam are as follows:
Amended the Requirements for Foreign Expert and Technician
According to the Decree No. 70/2023/ND-CP, foreign expert work permit applicants shall have at least a bachelor’s degree or equivalent and 3 years of working experience. Technician work permit applicants shall have at least 1 year of training and 3 years of working experience.
Under the Decree No. 152/2020/ND-CP, foreign expert was required to have a university degree which must be directly relevant with the proposed job position in Vietnam. For foreign technician, it was required that the training field must be directly relevant to the proposed job position in Vietnam. The new Decree has removed the foregoing requirements.
Shorten the Timeline for Submitting Application for Hiring Foreigners
According to the Decree No. 70/2023/ND-CP, the employer shall submit an application for hiring foreign employees to the Ministry of Labour, Invalids and Social Affairs at least 15 days before the date on which foreigner is expected to be employed. The minimum requirement is 30 days under the Decree No. 152/2020/ND-CP.
Other Changes
From 1 January 2024, the employer must make a recruitment announcement for Vietnamese employees on the Ministry of Labour, Invalids and Social Affairs or the Employment Service Center online portals 15 days before requesting to hire a foreign employee.
The Management Board of Industrial Zones or Economic Zones are no longer responsible for foreign employee work permit issues.
If a foreigner works in multiple locations for the same employer, the employer is obligated to file an online report to the Ministry of Labour, Invalids and Social Affairs within 3 working days from the date the foreigner starts working at a different location.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
Joint stock companies (JSC) and limited liability companies (LLC) are two common types of companies in Vietnam. The main differences between JSC and LLC are as follows:Advantages of a JSC: A JSC can issue shares and be listed on the Vietnam stock exchange. It generally has higher reputation and financing capabilities, making it more suitable for large businesses or corporate groups.
Foreign invested enterprises (FIEs) registered in Vietnam are required to submit reports on investment activities to the relevant investment registration authorities on periodic basis in accordance with the Law on Investment of Vietnam and other laws and regulations.
A foreign invested company shall be dissolved under the following circumstances:The operation period specified in the company's charter expires without a decision on extension;The dissolution is decided by the shareholders of the company;The company fails to maintain statutory minimum number of members for six consecutive months without conversion;
A Foreigner has to apply for and obtain a valid work permit in order to work legally in the territory of Vietnam, except for the specific circumstances of work permit exemption as indicated by law. The foreigner is required to apply for a work visa or a temporary residence card to reside in Vietnam legally after obtaining a work permit. Foreigners with a temporary residence card can enter and exit Vietnam without a visa within the valid terms of their temporary residence card.
