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Recruitment Of Foreign Labor In The CEO/Business Manager Position

September 25, 2023 | Q&A

Dear DB Legal, We are an FDI company in Vietnam, and we want to employ one foreigner as our company's CEO and Legal Representative. Please kindly guide us on how to obtain the permit for him. Thank you.

Answer:

Thank you for being so interested in our services. For your questions, DB Legal – Law Firm in Vietnam answers as follows.

1) Step 1: Determining the need of employ foreign Labour:

According to the Article 2.1 of Decree No. 70/2023/ND-CP dated September 18, 2023 on admending and supplementing a number of articles of the Decree No. 152/2020/ND-CP dated December 30, 2020 regulating foreign workers in Vietnam recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam (“Decree 70”):

“a) At least 15 days before the expected date of employment of foreign workers, the employer (except the contractor) shall determine the demand for foreign workers for each job position that the Vietnamese employee has not yet met and report to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor. War Invalids and Social Affairs where the foreign worker plans to work according to Form No. 01/PLI Annex I promulgated together with this Decree.

…..

c) From January 1, 2024, the announcement of recruitment of Vietnamese workers to positions expected to recruit foreign workers shall be made on the Portal of the Ministry of Labor, War Invalids and Social Affairs (Employment Department) or the Portal of the Employment Service Center by the Chairman of the provincial People's Committee, centrally-run cities shall decide to establish themselves within at least 15 days from the expected date of reporting to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs where the foreign worker is expected to work. The content of the recruitment announcement includes: position and job title, job description, number, qualification requirements, experience, salary, time and location of work. After failing to recruit Vietnamese workers to positions recruiting foreign workers, the employer shall determine the need to employ foreign workers as prescribed at Point a, Clause 1 of this Article.”

This is the amending of the timeline for step 1 of the work permit, which is shortened from at least 30 days to at least 15 days from the day on which the Foreign Labor is predicted to work in the company. Besides, from January 1, 2024, employers will be required to, at least 15 days before the expected submission of Step 1,  provide notice of the recruitment of Vietnamese employees to the job positions in which foreign employees are expected to work on the public electronic information portal of the Occupational Department – Ministry of Labor, Invalids and Social Affairs (MOLISA) or a competent job service center. The content of such recruitment notification must include information such as the intended position and job title, job description, quantity, requirements for qualifications, experience, salary, working time, and location..

If the employer fails to recruit Vietnamese workers, it can then proceed to apply for the approval of using foreigners in the intended recruitment positions.

Check the application form for Step 1

2. Step 2: Submitting for work permit:

Application for issuance of a work permit

1. An application form (No 11/PL1);

2. The health check;

3. The criminal record check;

4. 02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within six months before the submission date of application.

5. An acceptance of the need for using foreign workers unless it is not required.

6. A valid certified true copy of the passport (can be certified by the employer or the competent agency).

7. Evidence of work permit eligibility for "business managers" is now clearly specified under Decree 70; the definition of "Business manager" is amended as follows:

(i) who is a head of branch, representative office or business location of an enterprise".

(ii) who leads and directly manages at least one function of an enterprise who is working under the direct instruction and management of the head of such enterprise; 

Therefore, employers must now submit the following documentation as evidence:

The enterprise's charter or operation regulations.

The enterprise's registration certificate, establishment certificate, or decision.

The enterprise's resolution or decision on the appointment of the foreigner to the business manager position.

 

This Advice includes information obtained or derived from a variety of publicly available sources. DB Legal has not sought to establish the reliability of these sources or verified such information. The information contained in this Advice is of a general nature only. It is not meant to be comprehensive and does not provide professional Advice. You should not act upon the information contained in this Advice without obtaining specific professional Advice. Whilst every care has been taken in preparing this document, DB Legal makes no guarantee, representation or warranty (expressed or implied) as to its accuracy or completeness, and under no circumstances will DB Legal be liable for any loss caused by reliance on any opinion or statement made in this document. Except as specifically indicated, the expressions or opinions are those of DB Legal only and are subject to change without notice. This document shall not be copied, reproduced, transmitted or further distributed by any recipient. The materials contained in this document were assembled in June 2023 and were based on the laws enforceable and information available at the time.

 

DB Legal is a full legal service Law firm in Da Nang, Viet Nam. Our Lawyers bring enormous legal experience for local and foreign parties in Central Vietnam and other provinces and cities in Vietnam. DB Legal help Client choose suitable solutions for their business and provide insightful Advice for Client's growth. Please do not hesitate to contact us if you have questions or need assistance in work permit application processes.

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