The Government has just issued Decree 70/2023/ND-CP amending and supplementing a number of articles of Decree 152/2020/ND-CP regulating foreign workers (employees) working in Vietnam and recruiting employ and managing Vietnamese workers working for foreign organizations and individuals in Vietnam.

Amended regulations related to intra-enterprise movement

Decree 70/2023/ND-CP has amended and supplemented the concepts of experts, executives, and technical workers.

Accordingly, experts are foreign workers in one of the following cases:

  • Graduated from university or higher or equivalent and have at least 3 years of work experience suitable to the job position that the foreign employee plans to work in Vietnam.
  • Have at least 5 years of experience and have a practicing certificate appropriate to the job position that the foreign employee plans to work in Vietnam. Special cases are decided by the Prime Minister at the request of the Ministry of Labor, War Invalids, and Social Affairs.
  • The CEO is a person in one of the following cases: The head of a branch, representative office, or business location of the enterprise. The person who heads and directly operates at least one area of an agency, organization, or enterprise and is subject to the direct direction and management of the head of the agency, organization, or enterprise.
  • For technical workers, foreign workers must be trained for at least 1 year and have at least 3 years of experience appropriate to the job position that the foreign worker plans to work in Vietnam.
  • Have at least 5 years of experience in a job suitable to the job position that the foreign employee plans to work in Vietnam.

Notably, Decree 70/2023/ND-CP has amended and supplemented regulations on using foreign workers. Specifically, regarding determining the need to use foreign workers, Decree 70/2023/ND-CP stipulates at least 15 days before the expected date of using foreign workers, the employer (except contractor) is responsible for determining the need to use foreign workers for each job position that Vietnamese workers cannot meet and report and explain to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs where the foreign workers are expected to work at.

During the implementation process, if there is a change in the need to use foreign workers in terms of position, job title, form of work, quantity, and location, the employer must report to the Ministry of Labor, War Invalids and Social Affairs, or the Department of Labor at least 15 days in advance from the expected date of employing foreign workers.

Also according to Decree 70/2023/ND-CP, from January 1, 2024, the notification of recruitment of Vietnamese workers to positions expected to recruit foreign workers will be made on the Electronic Information Portal of the Ministry of Labor, Invalids and Social Affairs (Department of Employment) or the Electronic Information Portal of the Employment Service Center established by the Chairman of the People's Committee of the province or centrally run city during the term of office at least 15 days from the expected date of explanation report to the Ministry of Labor, Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs where the foreign worker is expected to work at.

The content of the recruitment announcement includes position and job title, job description, quantity, requirements for qualifications, experience, salary, working time, and location. After failing to recruit Vietnamese workers to positions recruiting foreign workers, the employer is responsible for determining the need to use foreign workers according to regulations.

The Ministry of Labor, War Invalids and Social Affairs, or the Department of Labor, War Invalids and Social Affairs shall issue a written approval or disapproval of the use of foreign workers for each job position within 10 working days from the date of receipt of the explanation or notification report. The report explains the change in demand for using foreign workers.

Supplement report on use of foreign workers

In addition, Decree 70/2023/ND-CP has added regulations on reporting the use of foreign workers.

Accordingly, before July 5 and January 5 of the following year, foreign employers must report for the first 6 months of the year and annually on the situation of using foreign workers. The time to close reporting data for the first 6 months of the year is calculated from December 15 of the year preceding the reporting period to June 14 of the reporting period. The annual reporting period is from December 15 of the year preceding the reporting period to December 14 of the reporting period.

Before July 15 and January 15 of the following year or unexpectedly upon request, the Department of Labor, Invalids and Social Affairs is responsible for reporting to the Ministry of Labor, Invalids and Social Affairs on the situation of foreign workers working in the area. The time for closing reporting data for the first 6 months of the year and annually shall comply with the Government's regulations on the reporting regime of state administrative agencies.

Decree 70/2023/ND-CP adds regulations, in case a foreign employee works for an employer in many provinces and centrally-run cities, within 3 working days from the date the employee When a foreign employee begins working, the employer must report via the electronic environment to the Ministry of Labor, War Invalids and Social Affairs and the Department of Labor, War Invalids and Social Affairs where the foreign employee comes to work.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.