SUMMARY OF DECREE NO. 70/2023/NĐ-CP

The Government has issued Decree No. 70/2023/NĐ-CP, amending and supplementing certain provisions of Decree No. 152/2020/NĐ-CP dated December 30, 2020, of the Government, which regulates foreign workers in Vietnam and the recruitment and management of Vietnamese workers by foreign organizations and individuals in Vietnam. Decree No. 70/2023/NĐ-CP introduces several notable new provisions, including:

1. Change in the Authority Issuing Approval for the Employment of Foreign Workers

The decree has altered the competent authority responsible for approving or disapproving the employment of foreign laborers to either the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs for each job position as per Form No. 03/PLI Appendix I issued alongside this Decree. This approval or disapproval should be provided within 10 working days from the date of receiving the explanatory report or the report on changing the demand for employing foreign laborers.

2. Amendments and Additions Regarding the Use of Foreign Workers

The new Decree introduces several favorable changes for foreign workers. Specifically, the Decree has modified and supplemented the criteria for Experts, Chief Executives, and Technical Workers. Notably, the criteria for Experts and Technical Workers have been revised as follows:

+ Foreign Experts are now defined as individuals with at least a university degree or equivalent and a minimum of three years of relevant work experience for the intended position in Vietnam. The previous requirement of having a university degree in the exact field of intended work is no longer in effect.

+ Technical Workers are now defined as individuals who have received training for at least one year and have a minimum of three years of relevant work experience for the intended job position in Vietnam. The previous requirement of being trained and working in the exact field of training is no longer applicable.

Additionally, the Decree has shortened the reporting time for explanatory reports to at least 15 days from the intended date of employing foreign laborers. Specifically, during the implementation process, if there are changes in the demand for employing foreign laborers regarding positions, job titles, work forms, quantity, or locations, the employer must report to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs using Form No. 02/PLI Appendix I issued alongside this Decree at least 15 days before the intended date of employing foreign laborers.

3. Notice of Recruitment of Vietnamese Workers for Intended Positions of Hiring Foreign Workers on the Electronic Information Portal 

The Decree stipulates that the announcement of the recruitment of Vietnamese workers for positions intended for the employment of foreign workers will be conducted through the Electronic Information Portal. 

Specifically, the recruitment posting will take place on the Electronic Information Portal of the Ministry of Labor, War Invalids and Social Affairs (Employment Service Center), or on the Electronic Information Portal of the Employment Service Center established by the Chairman of the Provincial People's Committee in centrally governed provinces and cities. The minimum duration for the posting is 15 days, starting from the intended date of reporting the explanatory report to the Ministry of Labor, War Invalids and Social Affairs or to the Department of Labor, War Invalids and Social Affairs where the foreign laborers are expected to work.

The recruitment notice will include information such as job positions and titles, job descriptions, the number of positions available, educational and experience requirements, salary levels, working hours, and work locations.

In cases where Vietnamese workers cannot be recruited for the positions intended for the employment of foreign workers, the employer is responsible for determining the demand for employing foreign workers.

4. Abolishing Certain Provisions of Decree No. 35/2022/NĐ-CP on Industrial Zone and Economic Zone Management 

Firstly, the Decree abolishes the introductory paragraph "Granting, reissuing, extending, revoking labor permits, and confirming foreign laborers not requiring labor permits for employment within industrial zones and economic zones" and the phrase "receiving reports on the usage of foreign laborers" at point d, clause 2, Article 68.

Secondly, it eliminates the passage "receiving explanatory reports from enterprises within industrial zones and economic zones regarding the demand for employing foreign laborers for each job position that Vietnamese workers cannot fulfill" at point c, clause 3, Article 68.

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Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.