Decree 70 Regarding the Use of Foreign Labor in Vietnam: What Changes to Worry Expatriates?

Decree 70/2023/NĐ-CP has introduced several significant adjustments related to the use of foreign labor in Vietnam. The decree aims to optimize the management process of foreign labor while creating more favorable conditions for economic development and businesses in Vietnam.

Significance of Decree 70 Regarding the Use of Foreign Labor in Vietnam

Decree 70/2023/NĐ-CP was issued with specific reasons and objectives to improve the management of use of foreign labor in Vietnam. Here are some key reasons:

Adapting to the Increasingly Complex International Labor Market

The use of foreign labor in Vietnam is becoming increasingly complex and diversified. The decree is established to quickly and flexibly respond to new challenges in the international context of expatriates moving jobs between countries.

Promoting Economic and Industrial Development

Creating more favorable conditions for businesses to use foreign labor in Vietnam can promote the development of the economy and industry, especially in fields requiring high expertise that Vietnam needs to attract expatriates from other countries.

Enhancing Transparency and Effective Management

Regulations on electronic recruitment announcements and electronic work permit  issuance contribute to increasing transparency and reducing the risk of errors in the management process.

Reducing Administrative Procedures in Vietnam

By shortening the deadline for reporting foreign labor demand, Decree 70 helps businesses reduce administrative burdens, thereby increasing flexibility and efficiency in labor management.

Adapting to International Trends

The decree may also be established to adapt to international trends in labor management and migration. Simplifying and making the process more flexible can make Vietnam a more attractive destination for foreign labor and international businesses to set up business in Vietnam and having expatriates relocating to Vietnam.

Improving Nationwide Management

Changes in jurisdiction and increased uniformity among labor management agencies nationwide can improve overall efficiency and comprehensive management of foreign labor in Vietanm.

Protecting Rights for Foreign Workers

Regulations on reissuing work permits in case of information changes and the abolition of certain regulations related to industrial zones and economic zones may help protect the rights of foreign workers in Vietnam.

The adjustments and updates in Decree 70/2023/NĐ-CP are designed to address the concerns and needs of both businesses and foreign workers on use of foreign labor in Vietnam aiming to promote sustainable and positive development in Vietnam’s international labor sector.

Major Changes Regarding the Use of Foreign Labor in Vietnam

Requirements for Experts, CEOs, and Technical Foreign Workers:

-The specialization requirements have been adjusted, reducing difficulties for foreigners working in Vietnam.

-Experts only need a university degree and at least 3 years of relevant experience instead of a specific major as previously required.

-CEOs include heads of branches, representative offices, and those managing at least one sector of an organization, institution, or enterprise.

-Technical foreign workers need at least 1 year of training and 3 years of relevant experience for the intended position in Vietnam, compared to the previous requirement of specific training.

Shortening the Deadline for Reporting Foreign Labor Demand in Vietnam

The deadline for reporting foreign labor demand has been shortened from 30 to 15 days before the intended usage date.

Changes in the Authority for Approving the Use of Foreign Labor in Vietnam

The Ministry of Labor – Invalids and Social Affairs or the Department of Labor – Invalids and Social Affairs at the provincial level will have the authority to issue approval or disapproval documents for using foreign labor, instead of the Ministry of Labor – Invalids and Social Affairs or the provincial People’s Committee as previously.

Changes in Cases Requiring Reporting of Foreign Labor Demand

Four cases that did not require determining the demand for foreign labor have been removed, and two new cases that do not need confirmation of demand have been added.

Announcement of Vietnamese Recruitment for Intended Foreign Labor Positions

Employers must announce Vietnamese recruitment for positions where foreign labor is intended to be recruited on the doe.gov.vn website from 2024.

Reporting for Foreign Workers Working in Multiple Locations

Employers must report to the Ministry of Labor – Invalids and Social Affairs and the Department of Labor – Invalids and Social Affairs where foreign workers are working if they are working in multiple locations.

Additional Cases of Foreign Workers Not Needing Work Permit in Vietnam

Two new cases have been added where labor demand does not need to be confirmed: foreign lawyers and foreigners married to Vietnamese citizens and living in Vietnam.

Issuing Electronic Work Permit in Vietnam

The ability to issue work permit in Vietnam electronically has been added, ensuring compliance with legal regulations.

Adding Cases for Reissuing Work Permit in Vietnam

Information can be adjusted in case of changes in name, nationality, passport number, workplace, or when businesses change their names.

Abolishing Some Regulations on Industrial Zone and Economic Zone Management

Some regulations related to the management of industrial zones and economic zones have been abolished, transferring the procedures for issuing permits and reporting on the use of foreign labor to the Ministry of Labor – Invalids and Social Affairs and the Department of Labor – Invalids and Social Affairs.

Decree 70/2023/NĐ-CP takes effect from September 18, 2023, bringing about significant adjustments on use of foreign labor in Vietnam to create more favorable conditions for the use of foreign labor in Vietnam, supporting the investment activities of foreign businesses utilizing foreign experts in Vietnam.

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