This is an update to our last article on the proposed changes to Decree 152.
The Vietnamese government has finalized the changes and formed the new Labour Decree No.70 which will oversee foreign work permit applications and requirements. This new labour decree is based on the proposed changes and feedback and input from the business community and relevant industry groups, have been taken into consideration.
Here are the key things to note:
- Definitions of Experts and Technical Workers are updated to be more relaxed and the focus is on degree and work experience relevancy.
- Proof of labour market test of at least 15 days needs to be submitted before hiring a foreign national, starting 1 January 2024. This is a new additional step and may lengthen the process of onboarding staff.
- Job Position Approval (JPA) submission is reduced from 30 days to 15 days. Exemptions have been extended to foreign lawyers and nationals married to Vietnamese spouses.
- More documents are accepted for Work Permit applications. Managers and Executives are required to supply additional documentation. For Experts and Technical Workers, previously issued Work Permits or exemption certificates (WPEC) can be used as proof of relevant experience/expertise.
- Work locations in the same province needs to be detailed in the work permit application.
- When the maximum four-year validity period is reached for Work Permits issued under Decree 152, a new work permit can be applied for the same position and title.
- Ministry and Department of Labor, Invalids and Social Affairs (MOLISA, DOLISA) are the only authorities for activities surrounding work permits and WPECs.
Conclusion
The new labour decree provides both leniency and strictness for work permits which hopefully improves the ease of doing business in Vietnam. It also streamlines policies by MOLISA and DOLISA.
