Tiếng Việt
中文 (中国)
In recent years, the use of foreign labor in Vietnam has become a trend. From multinational companies to small and medium enterprises, the demand for foreign labor is increasing due to their higher expertise compared to local workers. However, the question arises: why does Vietnam need to explain the use of foreign labor?
Despite having a large population, Vietnam still struggles to meet the demand for quality labor. Particularly in high-tech industries, such as electronics manufacturing, finding and training workers to meet international standards poses a significant challenge. Using foreign labor can expedite this process.
In certain specialized fields like business administration, software development, cybersecurity, and IT, the demand for highly skilled labor often exceeds the domestic supply. Employing foreign labor can supplement the workforce while alleviating pressure on local labor resources.
In the future, the use of foreign labor in Vietnam will continue to be evaluated and adjusted to ensure that the interests of both the country and the labor community are maximized.
According to Article 152 of the Labor Code No. 45/2019/QH14, before recruiting foreign labor to work in Vietnam, organizations, individuals, or enterprises must provide specific reasons and obtain written approval from the competent state authority.
According to Form 01/PLI Appendix I, attached to Decree No. 152/2020/ND-CP and amended, supplemented in Decree No. 70/2023/ND-CP, those who need to use foreign labor must complete the required information as specified.
In explaining the demand for using foreign labor, employers need to justify why they need foreign labor instead of domestic workers for specific positions. This reason must be reasonable and relevant to the actual situation of the enterprise or organization as well as the labor market.
Upon receiving the application, the competent authority will process the request within 10 working days from the receipt of the application.
At least 15 days before the scheduled start date of work in Vietnam for foreign workers, employers must complete the procedures for registering the demand for using foreign labor for each position at the unit.
Why is it necessary to explain the demand for using foreign labor in Vietnam?
Explaining the demand for using foreign labor in Vietnam is necessary because while Vietnam does not prohibit the use of foreign labor in line with integration and economic development goals, unrestricted recruitment of foreign labor can lead to Vietnamese workers lacking employment opportunities.
Moreover, excessive reliance on foreign labor or imported raw materials can make Vietnam passive in the face of unpredictable events. For example, in the labor sector, if an event occurs causing many groups of foreign workers to simultaneously leave their positions and Vietnam to return to their home country, the key positions they hold cannot be promptly filled.
Vietnamese workers lacking the required skills, knowledge, and training will find it difficult to replace foreign workers in the short term, thereby creating a skills gap in managerial or high-level technical positions.
Therefore, to ensure the stability and development of the Vietnamese market, justifying the legitimate demand for using foreign labor in Vietnam is essential.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to info@aslgate.com.
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
