The Ministry of Labour, Invalids and Social Affairs (MOLISA) issued Decision 632/QD-LDTBXH on 4 May 2019. This decision addresses the changes of employment procedures governed by MOLISA. For employers, it is critical to understand your responsibilities and opportunities when recruiting and hiring workers and be aware of changes in work permit processes in Vietnam.
This article elaborates the changes made by MOLISA and why it is important for business owners hiring foreign employees.
The Purpose of Decision 632
Decision 632 was issued for the purpose of harmonising the practical processes released in several legal documents under MOLISA since late 2018. These documents are listed below and were then all incorporated into Decision 632:
This document was issued by the Government to amend Decrees with regard to administrative procedures and business conditions governed by MOLISA.
This circular was announced by MOLISA amending and supplementing some Decrees’ articles regarding administrative procedures governed by MOLISA.
Changes to Work Permit Processes in Vietnam under Decision 632
Some of the major changes under Decision 632 are as such:
- A foreigner does not need to submit a notarised passport for their work permit application. Now, a photocopy of the foreigner’s passport will suffice.
- No circumstances are provided for a work permit in Vietnam to be revoked.
- The determination process for the “demand for use of foreign employees” is simplified. Employers no longer need to determine the necessity of employing foreigners for each position in the company that Vietnamese cannot fulfill. Now, employers will only have to report and explain the circumstances to the chairman of provincial municipal of the People’s Committee.
- The timeline of obtaining a work permit has been reduced from 7 business days to 5 business days starting from the receipt date of complete application documents. An approval of foreign recruitment is still required before a work permit application can be processed.
- Changes and amendments to application forms: 1) Applicants need to declare the work location in Form 1, 2, and 3, 2) Format has changed in Form 9 and 3) The photo area in Form 12 in regards to the certification of foreign workers eligible for exemption from work permits has been removed. Therefore, no photo is required in Form 12.
Labour Market in Vietnam and Why Foreigners Are in Demand
Vietnam has encountered booming economy since the 90s, thanks to the liberalisation of the country’s economy. The open economy has created numerous favourable business conditions for investors who would like to take their business further in Vietnam.
In an effort to close the talent and skill gaps led by the changing economy, businesses in Vietnam have been recruiting foreign skilled workers. As a result, the number of foreign employees in Vietnam has been increasing tremendously over the years. Currently, there are more than 80,000 foreigners from over 100 countries working and residing in Vietnam.
Here is the basic information of current labour market in Vietnam:
- Vietnam is equipped with a large source of labour force, about 1 million young adults appearing in the Vietnamese labour market every year.
- A huge number of local workforce still belongs to low-skilled or blue-collar category and that’s why foreign workers are in demand for high-skilled jobs.
- Wages and salaries in Vietnam are geared towards the inexpensive end as compared to several other Asian countries. The minimum wage is between US$126 – US$180, depending on the location.
- More than 40% of foreign companies encounter challenging in recruiting skilled workers.
- The Vietnamese government has made the provision of vocational training a priority to Vietnamese young adults in order to close the skill and talent gaps. In 2018, more than 2.2 million people received the vocational training in over 1,900 vocational training centres in Vietnam.
How Cekindo can Help with Your Work Permit Application in Vietnam
Applying for a work permit in Vietnam is not all difficult and complex as long as you know the latest laws and meet the requirements.
Always play by the book and you or your foreign worker will be able to work legally in Vietnam without issues.
Get in touch with Cekindo, a reputable work permit service provider in Vietnam, by filling in the form below. We would be happy to answer your questions related to work permit processes and application in Vietnam.