Vietnam Human Resources – Best Practice Solutions and Impact of ASEAN

1. Vietnam Human Resources – Best Practice Solutions and Impact of ASEAN
by Oliver Massmann
The new Law on Social Insurance is coming into force at the 1 January 2016 and it will
introduce some extensive changes which are considered to be good for Vietnam and align with
international practice. These changes include, among others, expansion of the subjects of
application of compulsory social insurance; additional provisions to improve the transparency of
social insurance regime such as rights of employees to self-manage their social insurance books
and obligations of employers to publicize information about the payment of social insurance
premiums to employees every 6 months; steps to be taken to separate unemployment insurance
from the social insurance regime; etc.
In order to ensure such changes are properly understood by employers and employees, the
Ministry of Labour, War Invalids and Social Affairs should have more consultation and
communication with the business community by reviewing regulations related to such changes,
directly interacting with employers and employees during the consultation and opinion collecting
process and building trust for social insurance agency. This would allow employers to be better
positioned while explaining issues to their employees.
With respect to foreign workers, following the adoption of the new Labour Code in 2013, the
Government of Vietnam recently issued Decree No. 102/2013/ND-CP elaborating the Labour
Code’s provisions on foreigners working in the country. While the Decree clarifies the issuance
and reissuance of work permits and eligibility for work permit exemption, there are current
issues that should be resolved:
 Procedure for re-issuance of work permit should be simplified and it should be possible
to apply at least 30 days prior to its expiration so that applicants have time to get their
visa/temporary cards renewed;
 Trainees, who are working in Vietnam, and freelancers, who are working for many
entities, are not covered by this Decree;
 The requirement of a criminal record certificate should only be applicable for applicants
who have been in Vietnam for 6 months or more;
 The period for approval of a “foreign labour demand report” should be maximum 15 days
and not 6 weeks as in some provinces;
 Documents for issuance of work permit should depend on type of
employment/assignment including foreigners working under labour contracts and intra-
company transferees or assignees working under service contracts; foreigners working in
Vietnam less than 90 days to conduct audit, training, internship, etc.;
 Procedure for work permit exemption should be simple; and

2.  More comprehensive guidelines for applicants and training of officers in charge of
issuance of work permits should be provided.
Please kindly note that the upcoming ASEAN Economic Community will impact the hiring of
regional skilled labour in certain job categories by end the of 2015. The Ministry of Labour, War
Invalids and Social Affairs should maintain the communication channels with the business
community on this to address both opportunities and challenges.
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Please do not hesitate to contact Mr. Oliver Massmann under omassmann@duanemorris.com if
you have any questions on the above. Oliver Massmann is the General Director of Duane Morris
Vietnam LLC.
IF YOU ARE INTERESTED IN DOING BUSINESS IN VIETNAM PLEASE VISIT:
www.vietnamlaws.xyz
THANK YOU VERY MUCH