AmCham sends letter to Prime Minister about Decree 46 on Employment of Foreigners Working in Vietnam

Hanoi, Jul 29, 2011. AmCham joined other foreign business associations and sent a letter to H.E. Prime Minister Nguyen Tan Dung expressing concern about some provisions of Decree No.46/2011/NĐ-CP (Decree 46), issued by the Government on 17th June 2011, which makes a number of major changes to Decree 34/2008/NĐ-CP dated 25 March 2008 on Employment and Administration of Foreigners Working in Vietnam.

Decree 46 will come into effect on Aug 1, 2011, and the foreign business community is concerned that the new Decree will discourage investment in Vietnam, and would like to seek a solution that satisfies both Vietnam’s need to control the labour market as well as foreigners’ freedom to hire their preferred staff without additional administrative burdens.

The AmCham letter, in particular, highlighted the fact that that Decree 46 imposes regulations that violate Vietnam’s international treaty obligations, specifically Chapter IV, Article 8.2 and 8.3 of the U.S.-Vietnam Bilateral Trade Agreement (“BTA”).

Please click here to read the full letter.