Decree No. 70/2023/ND-CP amending Decree No. 152/2020/ND-CP on foreign workers working in Vietnam, and recruitment and management of Vietnamese workers working for foreign employers in Vietnam

On September 18^th, 2023, the Government issued Decree No. 70/2023/ND-CP on amendents to the Decree No. 152/2020/ND-CP on foreign workers working in Vietnam, and recruitment and management of Vietnamese workers working for foreign employers in Vietnam.

There have been some significant changes in the procedure for determining the need for foreign workers as follows:

1. Change of the competent authority for approving the employment of foreign labor

According to Clause 2 of Article 4 of Decree No. 152/2020/ND-CP, the authority to approve the use of foreign worker was vested in the Ministry of Labor, Invalids and Social Affairs or the provincial People’s Committee. Decree No. 70/2023/ND-CP has amended this provision by delegating this authority to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs. Consequently, the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs is responsible for reviewing and approving or rejecting the employment of foreign worker for each specific job position, following the form 03/PLI Appendix I attached to Decree No. 70/2023/ND-CP.

The review period is 10 working days from the date of receiving the explanatory report or the report on changes in the demand for foreign worker.

The above-mentioned change helps establish uniformity in the management and approval of the use of foreign worker. As a result the Ministry of Labor, War Invalids and Social Affairs is responsible for centrally managing state recruitment and the oversight of foreign worker throughout the country, as well as the management of Vietnamese workers working for foreign organizations and individuals in Vietnam. Meanwhile, the Department of Labor, War Invalids and Social Affairs will be responsible for centralized management of foreign worker within its jurisdiction.

2. Changes regarding the timeframe for reporting an explanation of the demand for foreign workers

Previously, according to the provisions in Clause 4, Article 1 of Decree No. 152/2020/ND-CP, employers of foreign worker were required to determine the need for foreign worker utilization and provide an explanatory report to the competent authority at least 30 days before the date on which the foreign worker are expected to be employed. In cases where there were changes in the demand for foreign worker, the employer was obligated to report these changes at least 30 days before the date on which the foreign worker are expected to be employed.

However, Decree No. 70/2023/ND-CP has shortened the reporting period for the explanation report to a minimum of 15 days before the date on which the foreign worker are expected to be employed. Additionally, if there are any changes related to the job position, job title, work arrangement, quantity of workers, required qualifications and experience, salaries, working time and location of the foreign workers, the employer is required to report these changes at least 15 days in advance of the planned implementation.

Shortening the reporting period aims to create favorable conditions for the management of foreign worker and to quickly respond to job demands.

3. The announcement of recruitment of Vietnamese workers to positions expected to recruit foreign workers on the electronic information portal

According to Clause 2, Article 4 of Decree No. 70/2023/ND-CP, starting from January 1^st, 2024, the announcement of recruitment of Vietnamese workers to positions expected to recruit foreign workers shall be made on the website of the Ministry of Labor, War Invalids and Social Affairs (Employment Department) or the website of the Employment Service Center, which is established by the President of the People’s Committee of province or centrally affiliated city (hereinafter referred to as province).

The minimum announcement period is at least 15 days from the expected date of sending an explanation 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 is expected to work.

The recruitment announcement shall contain job position/job title, job description, quantity of workers, required qualifications and experience, salaries, working time and location.

After an unsuccessful attempt to recruit Vietnamese workers for positions that are expected to be filled by foreign workers, the employer is responsible for determining the demand for employing foreign workers as per regulations. 

The announcement of recruitment of Vietnamese workers to positions expected to recruit foreign workers holds special significance in employment management and ensuring fairness in providing employment opportunities. It also ensures competitiveness for domestic workers.