In the context of global economic integration and development, an increasing number of foreign workers are coming to Vietnam to work, contributing to the growth of key economic sectors. However, to ensure legality and protect the rights of both foreign workers and enterprises, obtaining a work permit is a mandatory and crucial process.

This article will provide an overview of the procedures for obtaining work permits for foreigners in Vietnam, including necessary conditions, administrative procedures, and current legal regulations.

1. Requirements for employment service for foreign invested enterprises

According to Decree 31/2021/ND-CP, the employment service market is currently not listed among the sectors that are prohibited from foreign market entry or those that require conditional access for foreign investors. This facilitates foreign organizations and individuals interested in investing in this sector in Vietnam.

However, it is important to note that certain related sectors remain restricted. Specifically, the service of sending Vietnamese workers abroad under contracts is a sector that is not permitted for foreign investors, as clearly stipulated in Clause 6, Section A, Annex I of this Decree. This regulation aims to protect the rights and labor security in the field of labor export, which is a sensitive industry subject to strict state management.

Legally, there is no provision prohibiting foreign investors from establishing employment service enterprises in Vietnam with 100% of the foreign investor’s charter capital. However, according to legal regulations, enterprises operating in the employment service sector must fulfill a deposit obligation of 300,000,000 VND (three hundred million VND). This deposit is intended to safeguard the rights of workers and enhance the transparency, responsibility of enterprises during their operations.

Thus, foreign investors can be assured of investment opportunities in the employment service sector in Vietnam, provided they fully comply with existing legal regulations regarding deposits and market access limitations as stipulated by Decree 31/2021/ND-CP. Understanding and adhering to these regulations will help foreign investors ensure legality and sustainability in their business activities, while also contributing to the development of the labor market in Vietnam.

2. Operations of employment service enterprises under Vietnamese Law

According to Article 40 of the 2013 Labor Law, enterprises operating in the field of employment services play a crucial role in connecting labor supply and demand, contributing to resolving employment issues for workers and meeting the recruitment needs of enterprises. Specifically, the activities that employment service enterprises are permitted to undertake include:

Consultation and job placement services: Enterprises provide consultation services to workers about job opportunities that align with their skills and aspirations, while also assisting employers in finding suitable candidates. This serves as an important bridge to minimize the gap between labor demand and recruitment needs.

Provision and recruitment of labor as required: Employment service enterprises can conduct recruitment and supply labor according to the specific requirements of employers. This activity not only helps employers save time and costs but also ensures the acquisition of quality and suitable personnel.

Collection and provision of labor market information: One of the key responsibilities of enterprises is to gather and provide information related to the labor market. This information is valuable for making recruitment decisions, adjusting human resources, and formulating labor development policies.

Labor market analysis and forecasting: Analyzing trends and forecasting the labor market enables enterprises to make accurate assessments of future labor needs. This is beneficial not only for employers but also helps workers prepare the necessary skills to meet market demands.

Skills training and vocational education: Employment service enterprises may participate in skills training and vocational education for workers, contributing to the enhancement of workforce quality. This activity is carried out in accordance with legal regulations to ensure that workers acquire the necessary skills to meet market demands.

Implementation of employment programs and projects: Employment service enterprises can participate in or implement programs and projects related to employment, helping to address unemployment issues and providing workers with greater access to job opportunities.

With these diverse and important activities, employment service enterprises play a key role in promoting sustainable development of the labor market, meeting the human resource needs of various economic sectors, while also safeguarding the rights of workers in their job search process.

3. Necessary licenses for foreign organizations to establish employment service enterprises in Vietnam

When a foreign organization wishes to establish an enterprise operating in the employment service sector in Vietnam, it must comply with current legal regulations and complete the necessary licensing procedures. Specifically, the enterprise needs to obtain the following licenses and certifications:

Investment registration certificate: This is the first license that foreign investors must obtain to conduct business in Vietnam. It confirms the legality of the investment activities and the right to participate in the Vietnamese market.

Enterprise registration certificate: After obtaining the Investment Registration Certificate, the enterprise must register and receive the Enterprise Registration Certificate to be officially recognized legally, establish its legal status, and operate legally in Vietnam.

Employment service license: This is a specialized license for the employment service sector. This license permits the enterprise to provide services such as consultation, job placement services, labor recruitment as per employer requests, and other related activities in accordance with legal regulations.

4. Requirement for obtaining an employment service license

To be granted an employment service license, the enterprise must meet several important requirements as stipulated in Article 14 of Decree 23/2021/ND-CP, specifically as follows:

Location of headquarters or branches: The enterprise must have a location for its headquarters or branches that is either owned or leased with a stable contract lasting at least 03 years (36 months). This requirement ensures the stability of the enterprise’s operations and its ability to provide services continuously and sustainably.

Deposit requirement: The enterprise must fulfill a deposit obligation of 300,000,000 VND (Three hundred million VND) to cover potential risks that may arise during its operations, while also enhancing the enterprise’s responsibility in protecting the rights of workers.

Requirements for the Legal Representative: The legal representative of an employment service enterprise must meet the following requirements:

The legal representative must be a manager of the enterprise as mentioned in the Enterprise Law, ensuring the ability to operate and manage business activities effectively.

The representative must not be subject to any restrictions or loss of civil act capacity. They should not be under criminal prosecution, serving a prison sentence, or subject to administrative penalties at compulsory rehabilitation centers or educational institutions. Additionally, the representative must not be prohibited by a court from holding positions, practicing professions, or performing any activities related to employment services.

Qualifications and professional experience: The representative must have at least a university degree or a minimum of 02 years (24 months) of direct experience in the employment service or labor supply sector within the 05 years preceding the application for the license. This ensures that the head of the enterprise possesses the necessary expertise and experience to effectively manage business operations and comply with legal requirements.

With these stringent licensing and permit requirements, the process of establishing an employment service enterprise in Vietnam requires foreign investors to thoroughly prepare both legally and in terms of human resources to ensure sustainable operations and compliance with Vietnamese law.

5. Documents for obtaining an employment service license

To obtain an employment service license in Vietnam, enterprises must prepare a complete and accurate documents as specified in Article 17 of Decree 23/2021/ND-CP. Specifically, the documents must include the following papers:

Application letter for license: The enterprise must submit an application letter for the license using Form No. 02 in Annex II attached to Decree 23/2021/ND-CP. This document is essential to confirm the enterprise’s intent and commitment to comply with legal regulations related to employment service activities.

Authenticated copy or copy of location lease contract or certificate of ownership: To ensure the legality of the operating location, the enterprise must provide a authenticated copy of the lease agreement or ownership certificate as stipulated in Clause 1, Article 14 of Decree 23/2021/ND-CP. If submitting a copy, the enterprise must present the original for verification.

Deposit certificate: The enterprise must provide a deposit certificate for employment service activities using Form No. 03 in Annex II attached to Decree 23/2021/ND-CP. The deposit amount of 300,000,000 VND is intended to ensure the enterprise’s stability and responsibility regarding its employment service activities.

Curriculum vitae of the legal representative: The curriculum vitae of the enterprise’s legal representative must be prepared using Form No. 04 in Annex II attached to Decree 23/2021/ND-CP. This document is crucial for assessing the qualifications and experience of the enterprise’s management.

Criminal Record Certificate No. 1: The legal representative must provide Criminal Record Certificate No. 1, in accordance with legal provisions. If the representative is a foreign national not eligible for this certificate, the enterprise must substitute it with a foreign criminal record certificate or a document confirming that the representative is not under prosecution or serving a sentence. These documents must be issued within six months prior to the application submission and, if in a foreign language, must be translated into Vietnamese, authenticated, and legalized.

Certified copy of qualifications or documents proving professional experience: The enterprise must submit a certified copy of relevant qualifications or documents proving the legal representative’s direct experience in employment service management. These documents may include employment contracts, hiring or appointment decisions, and, if in a foreign language, must be translated into Vietnamese, authenticated, and legalized.

6. Procedure for obtaining an employment service license

The process for obtaining an employment service license is carried out in the following steps:

Submit application: The enterprise submits one complete set of documents to the Department of Labor, Invalids, and Social Affairs where the enterprise’s headquarters is located. This agency has the authority to review and decide on the issuance of the license for the enterprise.

Document review and receipt issuance: Upon receiving the application, the Department of Labor, Invalids, and Social Affairs will review the submitted documents. If the application is complete and valid, the agency will issue a receipt indicating the date of receipt, which will serve as a basis for subsequent processing.

Review and license issuance: Within 07 working days from the date of receiving a complete and valid application, the competent authority will review and issue the employment service license to the enterprise. If the application does not meet the requirements or contains errors, the Department of Labor, Invalids, and Social Affairs will provide a written response to the enterprise, clearly stating the reasons for the refusal to issue the license.

With a clear procedure, foreign organizations wishing to establish employment service enterprises in Vietnam must carefully prepare their documents and necessary requirements to ensure a advantageously and quickly prompt licensing process while fully complying with Vietnamese legal regulations.

Time of writing: 18/10/2024

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