|When:||7th June, 2012|
|Where:||Legend Hotel Saigon, 2A-4A Ton Duc Thang Street, Dist.1, HCMC|
HCMC. Jul 28,2011. Nguyen Thi Dan, head of the Labor Management and Wage Division under the HCM City Department of Labor, War Invalids and Social Affairs, told the Saigon Times Weekly about some notable points of the new decree on foreign labor employment
Q: Decree 46 will take effect from August 1 this year. In your opinion, how will changes in the decree affect foreign employees in HCM City in particular?
A: Like the previous decree on foreign labor (Decree 34), the new decree still focuses on skilled foreign employees, especially managers, managing directors and experts. Following this new decree, HCM City supports and encourages more enterprises to recruit foreign employees. They must be skilled and experienced workers who can use hi-tech products to help improve the capacity of domestic enterprises. However, the recruitment of foreign employees must be balanced with the employment of local workers.
Could you explain the word “balanced” you have just mentioned?
Both Decree 34 and Decree 46 emphasize the recruitment and management of skilled and experienced foreign employees. This is aimed at helping local enterprises improve their competitiveness. Moreover, the skilled and experienced foreign employees can give training to local workers so that the latter can stand on their own feet in the future.
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.
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