Decree 70/2023/ND-CP (Decree 70) amends and supplements certain provisions of Decree 152/2020/ND-CP regarding work permits for foreign workers in Vietnam and abolishes some provisions in Decree 35/2022/ND-CP.

Decree 70 came into effect on September 18, 2023, and promises to create favorable conditions for businesses in recruiting and managing foreign workers in Vietnam:

1. Work Permits And Proof Of Work Experience:

The Labor Code requires foreign workers to have work experience of three or five years, depending on the job position. During the work permit application process, many state agencies have required foreign workers to provide evidence of their work experience abroad and obtain confirmation from foreign organizations. This has created challenges and barriers for both businesses and foreign workers in terms of time and cost.

However, according to Article 1.5(b) of Decree 70, a confirmation letter from foreign organizations, businesses, or agencies regarding the work experience of experts, technical workers, or the work permit itself will be accepted as proof of work experience, without the need for additional confirmation from foreign organizations.

2. No Requirement Or Work Experience In The Relevant Field Of Training:

Decree 152 required foreign workers to have work experience relevant to their field of training. This posed difficulties for many businesses and foreign workers. However, Decree 70 has amended this requirement, allowing proof of work experience relevant to the intended job in Vietnam, without the mandatory requirement of matching the field of training.

3. Working At Multiple Locations:

Decree 70 permits foreign workers to work for a single business at multiple locations and requires the business to list all work locations in the work permit application. Businesses must report this information electronically to the Ministry of Labor and the Department of Labor in the province where the foreign worker is employed.

4. Documentation Proving The Position Of Manager Or Director:

Decree 70 provides definitions for the positions of manager and director, and it allows businesses to use documents such as the company's charter, business registration certificate, or appointment decisions to prove the position of the director.

5. Streamlined Authority For Work Permit Issuance:

Decree 70 has changed the work permit issuance process to make it more unified and efficient. Previously, work permits were issued based on the jurisdiction of various agencies. However, Decree 70 specifies that the Department of Labor, War Invalids, and Social Affairs is the authority responsible for issuing work permits to foreign workers. Industrial zone management boards no longer have the authority to manage the recruitment of foreign workers. This simplifies the work permit application process and creates consistency in managing foreign workers, regardless of their work location.

6. Publicly Announcing Job Openings For Vietnamese Workers:

According to Decree 70, starting from January 1, 2024, businesses must comply with regulations requiring them to publicly announce job openings for Vietnamese workers before hiring foreign workers. Job postings must be published on the electronic portal of the Ministry of Labor, War Invalids, and Social Affairs or the employment service center established by the provincial People's Committee. Additionally, the deadline for reporting the explanation of the need for foreign workers has been reduced from 30 days to 15 days, optimizing the recruitment process.

Decree 70 is expected to create employment opportunities for foreign workers in Vietnam, alleviate challenges for businesses, and provide favorable conditions for companies hiring foreign labor.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.