January 2023
Impact High
Summary
Resolution No.105/NQ-CP (“Resolution 105”) dated 9 September 2021 on provision of assistance for enterprises, co-operatives, and business households were issued by the Government to support businesses affected by the Covid-19 pandemic, including employers with foreign employees working in Vietnam. As a result, some relaxation on labour procedures were implemented.
The Ho Chi Minh City Labour Department has issued the Official Letter No. 374/SLĐTBXH-VLALD dated 9 January 2023 stating that the relaxation on issuance and extension of work permits for foreigners working in Vietnam provided under Resolution 105 is effective till 31 December 2022, which is in accordance with Item 3.8, Article 3, Resolution No.30/2021/QH15 (“Resolution 30”) dated 28 July 2021 issued by the National Assembly.
With the lapse of Resolution 105, the strict standards set in Decree 152/2020/ND-CP (“Decree 152”) dated 30 December 2020 on work permit issuance are now reinstated.
See below for full details.
The Details
The Government issued Decree 152 providing labour guidance for foreigners working in Vietnam and Vietnamese working for foreign organisations and individuals in Vietnam. Decree 152 came into effect on 15 February 2021, replacing Decree 11/2016/ND-CP (“Decree 11”) dated 3 February 2016.
Though Decree 152 provides clarities on some definitions and procedures on work permit application, at the same time, it also made the process and procedures more extensive and stringent compared to the previous Decree 11.
Due to the disruption of Covid 19 pandemic, the Government introduced Resolution 105 on 9 September 2021 to assist businesses impacted by the COVID-19 lockdown measures. Among others, the Ministry of Labour, Invalids & Social Affairs (“MOLISA”) eased the conditions for issuance and extension of work permits for foreigners working in Vietnam.
For the convenience of our readers, we highlighted below 4 notable conditions.
1. Under Decree 152 on foreigners working in Vietnam, an expert is defined as an individual having a university degree or equivalent, and with a minimum 3 years working experience relevant to the job position or job assignment that he or she will be appointed in Vietnam. Resolution 105 has loosened this requirement whereby the university degree can be a degree not connected to the job position the foreign expert will be appointed in Vietnam;
2. Under Decree 152, a technical worker means a foreign worker who has been trained in a technical field for at least 1-year, and with a minimum 3 years working experience in his/her training field. Resolution 105 has again softened the requirement whereby the technical training field does not have to relate to the job position the foreign technical workers undertake in Vietnam;
3. Under Decree 152, documents confirming experts and technical workers are (i) diploma, university certificate; and a (ii) written certification from a foreign organisation or company confirming the number of years of experience of the expert, technical worker. Resolution 105 provided a flexible alternative, where a previously issued work permit in Vietnam is accepted as an alternative document, confirming the number of years of experience of the experts or the technical workers;
4. Simplification of document certification process. Under Resolution 105, when applying for a work permit, a certified true copy of passport of the applicant is no longer required.
Other local provincial labour departments are also adhering to Resolution 30 which states that Resolution 105 is effective till 31 December 2022 only.
With the lapse of Resolution 105, the strict standards set in Decree 152 on work permit issuance have now been reinstated.
| Decree 152 on foreigners working in Vietnam | Resolution 105 on supporting enterprises, co-operatives and business households during Covid-19 pandemic |
|---|---|
| Experts – Have a university degree and at least 3 years work experience in his/her training field in corresponding to the position apply for in Vietnam | University degree does not connect to the job position apply for in Vietnam is acceptable |
| Technical workers – Have at least 1 year of technical training and at least 3 years work experience in his/her training field | Training field does not have to be related to the role or relevant experience |
| Documents confirming experts and technical workers are (i) University, Diploma, certificate; (ii) written certification from an agency, organization or company in foreign country on number of years of experience of the expert, technical worker | Previously issued work permit in Vietnam is accepted as an alternative document confirming the number of years of experience of experts/technica
l workers |
| Have a valid certified true copy of passport | Certified true copy of passport is no longer required |
| Effective on 15 February 2021 | Effective during 9 September 2021 to 31 December 2022 |
Other key changes affecting foreigners working in Vietnam include the following:
✓ Foreign teachers working at the inter-level schools are required to prove their expertise according to the requirements regulated in the Law of Education, Decree No.86/2018/NĐ-CP and Official Letter No.1105/HTQT;
✓ Foreign teachers working at foreign language centers are required to prove their expertise as per the requirements regulated in the Law of Education, Decree No.86/2018/NĐ-CP, Circular No.21/2018/BGDĐT and Official Letter No.1105/HTQT.
✓ Under Circular 40/2016/TT-BLĐTBXH dated 25 October 2016 guiding on implementation of a number of Articles of Decree 11/2016/NĐ-CP dated 3 February 2016, there is a clause stating that individuals who hold a valid work permit in one location in Vietnam but work in another province for more than 10 consecutive days are not required to obtain a separate work permit if the work duration is temporary. Such individuals, instead, can file a “work location report” to the provincial labour authorities where he/she works. Resolution 105 provides the same flexibility to those who hold a work permit in one location in Vietnam but need to work in another province for a maximum 6 months. Under the reinstated Decree 152, this clause has been removed.
Contact us
Please reach out to your usual Vialto Partners contact should you have questions on the above.
● Brittany Chong, Partner, Vietnam: brittany.chong@vialto,com
Further information on Vialto Partners can be found here: www.vialtopartners.com
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