{"id":6100,"date":"2023-07-14T13:51:15","date_gmt":"2023-07-14T06:51:15","guid":{"rendered":"https:\/\/cdlaf.az9s.group\/?p=6100"},"modified":"2023-08-02T09:11:55","modified_gmt":"2023-08-02T02:11:55","slug":"foreign-investors-and-labor-outsourcing-activities-in-vietnam","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/foreign-investors-and-labor-outsourcing-activities-in-vietnam\/","title":{"rendered":"Foreign investors and labor outsourcing activities in Vietnam"},"content":{"rendered":"<p>Labor outsourcing is becoming a reliable method for foreign companies to take advantage of the young and valuable labor force in Vietnam. By collaborating with local companies, foreign investors can take advantage of the talents and skills of Vietnamese employees in a variety of business sectors, from manufacturing and services to information technology. Besides, one of the important advantages of labor outsourcing activities in Vietnam is the diversity of labor sources.<\/p>\n<p>However, labor outsourcing also imposes some challenges for investors who need to establish a labor supply enterprise in Vietnam. The following article will give investors an overview of the conditions and challenges that they face when providing labor outsourcing services in Vietnam.<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-3680\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/pexels-edmond-dantes-4344860-ld-1-1200x800.jpg\" alt=\"\" width=\"1020\" height=\"680\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/pexels-edmond-dantes-4344860-ld-1-1200x800.jpg 1200w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/pexels-edmond-dantes-4344860-ld-1-600x400.jpg 600w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/pexels-edmond-dantes-4344860-ld-1-768x512.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/pexels-edmond-dantes-4344860-ld-1-1536x1024.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/02\/pexels-edmond-dantes-4344860-ld-1.jpg 1920w\" sizes=\"auto, (max-width: 1020px) 100vw, 1020px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/foreign-investors-and-labor-outsourcing-activities-in-vietnam\/#1_Labor_outsourcing_services_by_Vietnamese_law\" >1. Labor outsourcing services by Vietnamese law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/foreign-investors-and-labor-outsourcing-activities-in-vietnam\/#2_What_conditions_do_the_WTO_commitments_and_Vietnamese_laws_stipulate_for_labor_outsourcing_services\" >2. What conditions do the WTO commitments and Vietnamese laws stipulate for labor outsourcing services?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/foreign-investors-and-labor-outsourcing-activities-in-vietnam\/#3_Providing_labor_outsourcing_services_through_e-commerce_websites\" >3. Providing labor outsourcing services through e-commerce websites<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/foreign-investors-and-labor-outsourcing-activities-in-vietnam\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Labor_outsourcing_services_by_Vietnamese_law\"><\/span>1. Labor outsourcing services by Vietnamese law<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Clause 1, Article 52 of the Labor Code 2019, labor outsourcing is when an employee enters into a labor contract with an employer who is a labor outsourcing enterprise, after which the employee is transferred to work and is managed by another employer while still maintaining an employment relationship with the employer who has entered into a labor contract.<\/p>\n<p>Accordingly, a labor outsourcing enterprise is an enterprise established by the Enterprises Law 2020 that is granted a license for labor outsourcing operations, recruits, and enters into labor contracts with employees, then transfers the employees to work under the management of another employer while still maintaining the labor relationship with the enterprise that has entered into a labor contract.<\/p>\n<p>In the case that labor outsourcing activities are being performed through e-commerce websites, foreign investors need to meet additional conditions related to e-commerce services.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_What_conditions_do_the_WTO_commitments_and_Vietnamese_laws_stipulate_for_labor_outsourcing_services\"><\/span>2. What conditions do the WTO commitments and Vietnamese laws stipulate for labor outsourcing services?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to the WTO Commitments, the labor outsourcing service has not been committed by Vietnam to open the market to foreign investors. However, under Vietnamese law, specifically as listed in Appendix I to Decree 31\/2021\/ND-CP, the labor outsourcing service is not subject to market access restrictions for foreign investors. Accordingly, if the laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly Standing Committee, and decrees of the Government do not stipulate provisions for market access restrictions, foreign investors are entitled to access to the market<u> as regulated for domestic investors<\/u>.<\/p>\n<p>Currently, the Labor Code 2019 and Decree 145\/2020\/ND-CP have regulations on conditions for conducting labor outsourcing services. At the same time, many foreign investors are allowed to do business in this service in Vietnam, including:<\/p>\n<ul>\n<li>Adecco Vietnam<\/li>\n<li>ManpowerGroup Vietnam<\/li>\n<li>HR2B<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"3_Providing_labor_outsourcing_services_through_e-commerce_websites\"><\/span>3. Providing labor outsourcing services through e-commerce websites<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is probably an issue that many investors are interested in since, with the trend of digital technology, enterprises want to integrate all the needs of clients and suppliers right on a digital platform. However, depending on the scope of activities on the e-commerce website, enterprises will need additional sub-licenses, namely a Trading License issued by the Department of Industry and Trade. This license will arise in case where there is a basis to determine that the enterprise is providing e-commerce services.<\/p>\n<p>E-commerce service means a commercial activity whereby an e-commerce service provider sets up an e-commerce website to provide an environment for other traders, organizations, and individuals to conduct promotional activities, sell goods, or provide services. Therefore, in the case of an enterprise providing labor outsourcing services on a digital platform in which the enterprise is the connecting party between employers and employees, and at the same time provides a digital environment for the parties\u2019 interaction, information searching, and service connection, in some cases, the competent authority will rely on the scope of operation of the website to require enterprises to have a Trading license.<\/p>\n<p>In case where the enterprise traditionally performs labor outsourcing activities, and the enterprise&#8217;s website is only for introducing the services, the conditions for a trading license are not required.<\/p>\n<p>In conclusion, labor outsourcing activities in Vietnam have become an attractive and potential method for foreign investors. However, to fully take advantage of the potential of this activity, close cooperation between foreign investors and the Vietnamese Government is essential. Vietnam needs to have clear policies and regulations to ensure the rights of employees, and create favorable conditions for foreign enterprises to operate and develop in a stable and sustainable business environment.<\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 20\/<em>06\/2023<\/em><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/establishment-of-enterprise-in-vietnam-what-foreign-investors-need-to-consider-part-1\/\">Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/the-establishment-of-enterprises-in-vietnam-what-investors-need-to-consider-part-2\/\">Establishment of Enterprise in Vietnam, What Foreign Investors Need to Consider (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/procedure-for-foreign-commercial-franchising-registration-in-vietnam\/\">Procedure for Foreign Investor to contribute capital, purchase shares in the enterprise in Vietnam.<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/enterprises-with-the-opening-and-using-of-direct-investment-capital-account\/\">The enterprise with opening and using direct investment capital account<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/avoiding-the-risk-when-leasing-the-office-in-vietnam-some-recommendations\/\">Avoiding the risks when leasing the office in Vietnam \u2013 some recommendations<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/foreign-investors-provide-employment-services-in-vietnam\/\">Foreign Investors provide Employment Services in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/franchise-in-viet-nam-part-1\/\">Franchise in Vietnam (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/franchise-in-viet-nam-part-2\/\">Franchise in Vietnam (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/foreign-investor-doing-hotel-service-business-in-vietnam\/\">Foreign investor doing hotel business in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/regulations-on-capital-contribution-for-shareholder-and-member\/\">Regulations on capital contribution for Shareholder and Member<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/business-conditions-for-foreign-investor-in-the-education-service-field-part-1\/\">Business conditions for foreign investor in the education service in Vietnam (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/business-conditions-for-foreign-investor-in-the-education-service-field-part-2\/\">Business conditions for foreign investor in the education service in Vietnam (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/business-conditions-for-advertising-services-for-foreign-investor-in-vietnam\/\">Business Conditions for advertising services for foreign investor in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/methods-for-enterprise-to-effectively-control-and-debt-management\/\" target=\"_blank\" rel=\"noopener\">Methods for enterprise to effectively control and debt management<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/reduction-of-principal-for-customers\/\" target=\"_blank\" rel=\"noopener\">Reduction of Principal for Customers<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/establishment-of-a-branch-of-foreign-trader-in-vietnam\/\" target=\"_blank\" rel=\"noopener\">Establishment of a Branch of Foreign Trader in Vietnam<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/6100#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" 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class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Labor outsourcing is becoming a reliable method for foreign companies to take advantage of the young and valuable labor force in Vietnam. By collaborating with local companies, foreign investors can take advantage of the talents and skills of Vietnamese employees in a variety of business sectors, from manufacturing and services to information technology. Besides, one&#8230;<\/p>\n","protected":false},"author":4,"featured_media":5410,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-6100","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/6100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=6100"}],"version-history":[{"count":0,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/6100\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/5410"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=6100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=6100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=6100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}