You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

October 20, 2023

Key Takeaways from Vietnam’s Decree 70 on Foreign Workers

Subscribe to Updates

On September 18, 2023, the Vietnamese government issued Decree No. 70/2023/ND-CP (“Decree 70”) amending and supplementing certain provisions of Decree No. 152/2020/ND-CP (“Decree 152”), which regulates foreign workers working in Vietnam and the recruitment and management of Vietnamese workers working for foreign entities in Vietnam. While Decree 70 relaxes some conditions relating to foreign workers, the general goal of protecting and prioritizing domestic labor over foreign labor remains. The major changes introduced in Decree 70 are summarized below.

1. Amended Definitions and Requirements for Worker Classifications

Decree 70 introduces several changes to the requirements for foreign workers to be classified as “experts” and “technical workers.” Under Decree 152, foreign workers needed to hold bachelor’s degrees or receive training directly related to their intended job positions in Vietnam. However, under Decree 70, experts are only required to have a university degree or higher and at least three years of relevant work experience suitable for their intended positions in Vietnam.

Similarly, it is no longer necessary for technical workers to have training in a specific technical field to be eligible to work in Vietnam. Instead, a technical worker is defined as someone who has undergone at least one year of training and possesses at least three years of working experience suitable for their intended job position.

Additionally, Decree 70 clarifies and expands the scope of the term “executive director”. Accordingly, an executive director can be (i) the head of a branch, representative office, or business location of an enterprise (which helps clarify the previous definition of “executive director” in Decree 152); or (ii) an individual who oversees at least one field within an agency, organization, or enterprise while being under the direct supervision of the head of that agency, organization, or enterprise.

2. Application for Work Permit

The general procedure for work permit application under Decree 70 remains the same as under Decree 152, consisting of two steps:

Step 1: Approval of demand to use foreign labor

Under this step, employers must submit a report and explanation on their need to use foreign workers to the Ministry of Labor, Invalids and Social Affairs (MOLISA) or the Department of Labor, War Invalids and Social Affairs (DOLISA) of the province or city where the foreign workers are expected to work. Decree 70 has shortened the timeline for submitting this application for approval of demand to use foreign labor to a minimum of 15 days in advance of the foreigner commencing work, compared to 30 days under Decree 152.

Decree 70 also includes specific cases related to changing the demand to use foreign labor, which may arise in the course of employing foreign workers. These cases involve changes in the positions, job titles, work arrangements, quantities, and locations for which foreign workers are required.

Additionally, from January 1, 2024, if employers would like to recruit foreign workers for a certain position, they must first post a recruitment announcement seeking Vietnamese workers for that position on the online portal of MOLISA or the provincial-level employment service center at least 15 days before the expected date of applying for approval of demand to use foreign labor. The MOLISA and DOLISA have not provided clear guidance on this issue, so it is uncertain exactly what this obligation will entail. However, Decree 70 states that the recruitment announcement must include the position, job description, number of employees to be hired, qualification requirements, experience, salary, time, and location of work.

If the employer can establish that it was unable to recruit Vietnamese workers for the posted positions, it may then submit the application for approval of demand to use foreign labor.

Step 2: Application for work permit

For the work permit application, instead of the general provisions stated in Decree 152 as “Documents providing proof that the individual is a manager or an executive director”, Decree 70 specifically outlines three types of qualifying documents: (i) the company’s charter or the operating regulations of agencies, organizations, or enterprises; (ii) the enterprise registration certificate or certificate of establishment or establishment decision or other document of equivalent legal validity; (iii) resolutions or decisions on the appointment of agencies, organizations, or enterprises.

According to Decree 70, in addition to diplomas, certificates, or training certifications, experts and technical workers can use previously granted work permits or work permit exemption certificates as substitutes for the experience confirmation document issued by foreign agencies, organizations, or enterprises.

For expats who are experts or technicians and will continue working in the same position and job title after renewing their work permit, it is not necessary to resubmit all the documents from the initial work permit application dossier. Instead, they only need to submit the following documents: (i) application for the issuance of a work permit; (ii) health certificate; (iii) two color photos; (iv) approval of demand to use foreign labor; (v) certified copy of passport or copy of passport with confirmation from the employer; and (vi) certified copy of the issued and valid (previous) work permit. This means that the process of obtaining a new work permit after previously having a renewed work permit has become more straightforward.

If foreign workers work for an employer at multiple locations, the application for a work permit must list all the workplaces in the application.

3. Reissuance of Work Permit

Decree 70 lists additional types of information changes that will require reissuance of a work permit, including changes to full name, nationality, passport number, working location, or enterprise name (without changing the enterprise code).

The approval of demand to use foreign labor is no longer required to be submitted in this case.

4. Work Permit Exemptions

In addition to the list of cases for which foreign workers are exempted from applying for a work permit specified in Decree 152, Decree 70 amends and supplements the following circumstances: (i) foreigner sent to Vietnam by a competent foreign agency or organization to teach, or to act as a manager or executive director at an educational institution proposed to be established by foreign diplomatic missions or intergovernmental organizations in Vietnam; and (ii) foreigner confirmed by the Ministry of Education and Training to enter Vietnam to work as a manager, executive director, or principal at an educational institution proposed to be established by foreign diplomatic missions or intergovernmental organizations in Vietnam. Foreigners married to Vietnamese citizens are also now eligible for a work permit exemption certificate. Previously, many foreigners were on a dependent visa sponsored by their spouse, so would need to leave Vietnam every six months, which was very inconvenient.

5. Reporting Regime

If an expat works in many localities for the same employer, it is worth noting that the employers are obligated to file an online report to the MOLISA and the DOLISA within three working days from the start date of the expat’s working term.

Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

October 7, 2022
On October 3, 2022, Thailand’s Ministry of Labour issued an announcement canceling the prohibition on lockouts and strikes, which had been in place since the onset of the COVID-19 pandemic. While this cancellation does not apply to ongoing labor disputes already being considered under the interim arrangements, it will apply to all other labor disputes from October 5, 2022, when it was published in the Government Gazette. Lockouts and strikes are basic rights of employers and employees under the Labour Relations Act B.E. 2518 (1975). However, these rights can be suspended—as they have been since May 8, 2020, when the Ministry of Labour announced that all labor disputes that could not be resolved through negotiation must be presented to the Labour Relations Committee in lieu of organizing strikes or lockouts. The announcement referred to the necessity of such special administration during the COVID-19 situation in order to prevent possible negative impacts on both employers and employees. On September 30, 2022, Thailand ended its COVID-19 emergency decree and dissolved the country’s Centre for COVID-19 Situation Administration. In light of this, the Ministry of Labour decided to end the requirement that unresolved labor disputes be sent to the Labour Relations Committee. The ministry’s cancellation of the prohibition will once again allow employers and employees to organize lockouts and strikes under the Labour Relations Act, starting October 5, 2022. For more details on this development, or for assistance with employment-related questions or disputes in Thailand, please contact Tilleke & Gibbins at [email protected] or +66 2056 5555.
Read More
August 30, 2022
On August 26, 2022, Thailand’s National Wage Committee voted to raise the minimum wage to THB 328–354 per day (USD 9.01–9.72)—an increase of approximately 5% from the previous range of THB 313–336. The decision to boost minimum wages, which were last increased in January 2020, came after a 14-year-high headline inflation rate of 7.61% in July 2022. The new minimum wages have been submitted to the cabinet for final approval and are expected to take effect on October 1, 2022, following publication in the Government Gazette. The exact minimum wage depends on the province in which the workplace is located, as shown in the table below. These minimum rates are for one working day, which consists of eight hours for normal work, or seven hours for work that may be harmful to the health and safety of the employee. Legal Requirements After the new minimum wages are announced in the Government Gazette, employers may not pay employees wages below the prescribed rates. Violations are punishable by imprisonment for up to six months, a fine of up to THB 100,000, or both. Regarding the question of whether employers can reduce the working hours in order to pay less than minimum wages (e.g., a prorated amount), based on past practice, the National Wage Committee’s announcement is expected to provide that a “day” refers to an employee’s normal working day, regardless of whether it is shorter than the “normal working hours” set by the employer under the Labor Protection Act. For example, an employee in Bangkok who earns the current minimum wage of THB 331 per day for normal working hours of eight hours a day would still be entitled to the full new rate of THB 353 per day in October 2022, even if the employer reduces the working hours. For
Read More
November 24, 2021
Attorneys from Tilleke & Gibbins have provided the latest update to the Thailand contribution to Doing Business in…, a Q&A-style guide published by Thomson Reuters Practical Law that presents an overview of the legal framework for doing business in 63 jurisdictions worldwide. The Thailand chapter of the guide outlines Thailand’s legal system and key laws applicable to foreign companies doing business in the country. The chapter specifically covers the following main topics: Legal system: Thailand’s court system and codified legal system. Foreign investment: Lists of reserved business activities, restrictions on doing business with certain jurisdictions, exchange controls and currency regulations, and grants and incentives available to investors. Business vehicles: Ordinary partnerships, registered ordinary partnerships, limited partnerships, private limited companies, and public companies. Environment: Main laws and regulations, factory operation. Employment: Laws, employment contract requirements, work permits, and termination and redundancy. Tax: Taxes on employment, tax and nontax resident employees and businesses, corporate income tax, value added tax, special business tax, municipal tax, stamp duty, dividends, interest, intellectual property royalties. Competition: Important aspects of Thailand’s regulatory regime surrounding competition, centered around the updated Trade Competition Act. Antibribery and corruption: Laws, compliance requirements, regulatory authority. Intellectual property: Patents, trademarks, registered and unregistered designs, and copyright. Marketing agreements and advertising: Regulation of marketing agreements, Thailand’s Consumer Protection Act, direct marketing, role of the Consumer Protection Board and Food and Drug Administration. E-commerce: E-commerce laws and regulations, marketing and sales via online platforms. Data protection: An outline of Thailand’s Personal Data Protection Act. Product liability: Procedures and regulations for product liability and product safety, including the Unsafe Goods Liability Act and the Consumer Case Procedure Act. Product liability: Key regulatory authorities for trade competition, environmental issues, and financial services. To browse, download, or print the Thailand chapter, please visit the Practical Law website.
Read More
October 25, 2021
Michael Ramirez, a counsel in Tilleke & Gibbins’ dispute resolution group in Bangkok, has updated the firm’s contribution to the Global Attorney-Client Privilege Guide, published by Lex Mundi. The newly expanded guide provides information on what constitutes attorney-client privilege in over 70 countries around the world. The Thailand section of the guide contains in-depth information on the function and applications of attorney-client privilege in Thailand (or, as explained in the guide, an equivalent concept enshrined in Thai law), including coverage of the following topics: Privilege in corporations Common interest doctrine Litigation funding Crime-fraud exception Work product doctrine/litigation privilege Other privileges including mediation, accountant-client and settlement negotiation The interactive guide features expert contributions by Lex Mundi member firms from jurisdictions worldwide. Readers can browse the contributions, generate country-specific reports, and compare attorney-client privilege in multiple jurisdictions. For more information, please visit the Lex Mundi website.
Read More