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IMPACT – MEDIUM
What is the change? Vietnam has issued a resolution to relax a contentious new law that requires that foreign professionals show proof of work experience and a university degree or diploma to obtain a work permit.
What does the change mean? Under the proposed resolution, foreign experts and technicians would instead need to prove that they have either “specialist training qualifications” or five years of work experience. Foreign teachers would need only to prove they are “professional teachers” with at least a diploma (for language training center or pre-school) or bachelor’s degree (for general educational institutions) and able to justify that they are specialized in the subject they will be teaching in Vietnam.
Background: Under a recent legislative change, foreign experts and teachers must not only have college degrees, but must prove that they have five years of experience in their field (three years for foreign technicians).
After complaints by foreign teachers and other professionals about the heightened requirements, the Vietnamese authorities issued Resolution No. 47, which is proposing to change the requirements. Experts and technicians would have to meet the qualifications of a specialist or have five years of experience. Foreign teachers would not have to prove work experience and would only be required to prove they have a language-training diploma or bachelor’s degree and are “professional teachers” specialized in the field they intend to teach in Vietnam.
BAL Analysis: Businesses and foreign professionals will welcome an easing of what was seen as an overly burdensome documentary requirement. If passed, the resolution should improve the conditions for hiring foreign experts.
This alert has been provided by the BAL Global Practice group and our network provider located in Vietnam. For additional information, please contact your BAL attorney.
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What is the change? Vietnam’s National Assembly has passed a new immigration law that takes effect Jan. 1, 2015.
What does the change mean? The law overhauls visa categories and validity periods, prohibits conversion of one visa type to another, and sets new entry and exit bans.
Background: The new immigration law will restructure visas into 20 categories. The redefined foreign worker visa is valid for up to two years with temporary resident cards for the same period. Examples of specific visa categories include those that have been created for heads of representative offices, investors and foreign attorneys, and foreign nationals working with Vietnamese authorities. Visas for head of representative offices and temporary resident cards are proposed to be granted for up to three years. Visas and temporary residence cards for investors/foreign attorneys and foreign nationals working with Vietnamese authorities are proposed to be granted for up to five years.
An important change is that the new law prohibits foreign nationals from converting from one visa category to another while in Vietnam. The new law also adds several reasons why a foreign national will be denied entry or exit. For example, a person who has presented false information to obtain a permit or who has been deported within the previous three years will be denied entry. A person who has not met tax obligations or administrative sanctions will be denied exit for up to three years.
BAL Analysis: Companies and foreign assignees in Vietnam should prepare for the coming changes and submit applications for permits as soon as possible under existing law, wherever possible.
IMPACT – LOW
What is the change? Foreign nationals who hold work permits issued before Vietnam adopted its new labor and immigration law cannot renew their permits under old rules and must meet criteria under the new law.
What does the change mean? Holders of work permits issued before Nov. 1, 2013 must undergo a new medical exam, provide local police clearance, and, in some cases, show legalized degrees and work references as part of the renewal process.
Background: The Ministry of Labor, Invalids and Social Affairs (MOLISA) issued Decree 102 in September 2013, changing the law on employment of foreign nationals. The law took effect Nov. 1, 2013.
Foreign specialists and experts who apply for renewal of work permits issued before Nov. 1, 2013 must submit a new medical exam, local police clearance, a legalized educational degree and a legalized work reference letter. If the work permit has expired, the applicant must also provide a legalized foreign police clearance certificate.
Foreign managers, directors and executives renewing work permits issued before the new law took effect must undergo a new medical exam and obtain a local police clearance.
BAL Analysis: Foreign assignees who have renewed work permits under the old rules may not be aware of the new requirements and should be reminded to start the renewal application process as soon as possible. A local police clearance takes approximately 20 days. Expatriates may have to travel to their home countries to obtain foreign police clearances.
What is the change? A new rule mandates that foreigners who arrive in Vietnam before filing a work permit application must submit a local police clearance certificate, in addition to an overseas police clearance certificate.
What does the change mean? The rule will encourage foreign nationals to have their applications ready to submit as soon as possible after arriving, or to obtain work permits overseas before arrival whenever possible.
Background: In newly-published Circular #3, the Vietnamese authorities stated that if a foreign national has stayed in Vietnam before filing a work permit, he or she must submit a local police clearance certificate in addition to an overseas police clearance certificate. The circular does not specify how long a foreign national can stay in Vietnam before triggering the new requirement. In the past, local police clearance was only required for foreigners living in Vietnam for six months or more. The labor departments in Hanoi and Bắc Ninh provinces are beginning to enforce the rule in cases where a work permit application is filed several weeks after the date of the arrival stamp in an applicant’s passport.
BAL Analysis: Because of the ambiguity of the rule and the discretionary nature of police clearance requests by provincial departments of labor, foreign work permit applicants are strongly advised to complete their applications for immediate filing after arrival or complete the work permit process before entering Vietnam to avoid lengthy delays. When caught by the new requirement, those who have been in Vietnam for just a few days may be able to obtain a police clearance certificate from the Justice Department in Hanoi.
IMPACT – HIGH
What is the change? The government has released a long-overdue guidance circular to clarify work permit procedures under a law that took effect in November 2013.
What does the change mean? The circular clarifies timing related to the requirement that companies make an annual demand and seek approval from the People’s Committee for each foreign employee. The guidance also lists the documentation employers must submit for managers and for the newly-created categories of “specialists” and “technical workers.”
Background: On Sept. 6, 2013, the Ministry of Labor, Invalids and Social Affairs (MOLISA) issued Decree 102, changing the law on employment of foreign nationals in Vietnam. The new law took effect on Nov. 1 without further interpretive guidance from the government, throwing the work permit process into uncertainty, and in some cases putting applications on hold.
On Feb. 24, the government published the guidance circular detailing new procedures for companies using foreign employees. Here are the highlights:
Specialists must have:
Technical workers must have:
For managers and executives:
BAL Analysis: Businesses will gain certainty as to the rules, but will have to grapple with new procedures, potentially longer lead times and new scrutiny by the People’s Committee. The guidance circular is silent on what criteria the People’s Committee will apply in making its decisions. An additional guidance circular that is promised in March is expected to lay out procedures for companies in qualified industries to obtain exemptions from work permits for corporate transferees.
IMPACT – High
What are the changes? The Labor Department in Ho Chi Minh City has put all work permit applications and renewals on temporary hold until it receives guidance on how to apply a new law that took effect on Nov. 1.
What does the change mean? The temporary hold will cause delays for new and renewal work permit applications filed in Ho Chi Minh City.
Background: Decree 102 went into effect on Nov. 1, and changed the work permit process. The new law created a new category of “technical workers,” exempted some workers from work permit requirements, changed requirements for work permit applications and renewals, and required employers to report on hiring of foreign nationals.
The Ministry of Labour, Invalids and Social Affairs (MOLISA) was expected to publish a circular before Nov. 1 to explain how the new law will be implemented, but has not done so.
Because of the delay in the circular, the Labor Department in Ho Chi Minh City has put a hold on the processing of new and renewal work permit applications.
The Labor Department in Ho Chi Minh City has pointed to two provisions in the law that are particularly unclear. One provision requires local Labor Departments to get approval letters from the local People’s Committee before granting any work permits. However, the law does not explain the process. The second provision in question states that for some job categories, an applicant must submit both a legalized diploma and a working testimonial. Because the law is unclear about which jobs fall under the new requirement, the Labor Department in Ho Chi Minh City has said it may stop accepting some applications for experts, managers and technical engineers until MOLISA gives guidance.
BAL analysis: The hold will cause temporary, possibly lengthy, disruptions to work permit processing. BAL is following these developments and will alert clients when the hold is lifted and the new rules have been clarified.
This alert has been provided by the BAL Global Practice group. For additional information, please contact GlobalVisaGroup@bal.com.
What is the change? A new labor law is set to go into effect on Nov. 1. However, many details about the implementation of the new law have not yet been made clear. More information is expected this week.
What does the change mean? The new law may enact significant changes for intracompany transferees and short-term work permits, as well as increase regulations for employers of foreign workers.
Background: The Ministry of Labour, Invalids and Social Affairs (MOLISA) is expected to release a circular this week that will make the implementation of Decree 102 more clear in preparation for its enactment on Nov. 1. BAL’s current interpretation of the law suggests that its most important changes for clients may include:
BAL analysis: Decree 102 is likely to present both significant benefits and significant disadvantages for clients. If the law is implemented as is currently indicated, it could become much easier to use ICTs, but equally more difficult to hire foreign nationals for short-term assignments. It is difficult to forecast how much more time will be required for immigration processes. BAL will continue to provide the latest updates and analysis on the situation.
This alert has been provided by the BAL Global Practice group and our network provider located in Vietnam. For additional information, please contact GlobalVisaGroup@bal.com.