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International Education

Impact of Vietnamese Government Decree 46 on employment of foreign workers in Vietnam

Prepared by AEI Vietnam 14 September 2011

Much of Vietnam’s legal framework is formed by statements issued by government ministries (called Decrees) that give effect to and further define the laws passed by the National Assembly. One new Decree (Decree 46/2011/NP-CD, effective from 1 August 2011) affects the way in which recruitment and management of foreign workers can be undertaken in Vietnam.

Decree 46 is relevant to any business that employs non-Vietnamese nationals, including international schools, colleges, universities and English language centres. It is important that anyone affected take time to understand the impacts of the changes.

International business chambers and leading law firms in Vietnam have identified a number of new provisions that will affect the employment of foreign workers in Vietnam. Those likely to have the greatest impact on education providers with foreign staff include:

Employers must advertise in national and local newspapers for a period of at least 30 days in an effort to secure Vietnamese staff before the employer can recruit a foreign employee (unless the employer uses a recruitment agency)

Foreign employees engaged from outside Vietnam will require a work permit before they are able to enter Vietnam on a work visa

Evidence that attempts have been made to hire Vietnamese staff must be included in any application for a new work permit

Existing work permits must be renewed every time a foreign employee gets a new passport or changes place of work

Any application for renewal of a work permit must be accompanied by evidence that the employer is training a Vietnamese national to undertake the role currently filled by the foreign holder of the work permit, in the form of a legally-binding training contract

Foreign employees without a work permit may be unable to renew their visas in Vietnam and may be refused visas for re-entry if they are outside Vietnam.

These are only some of the changes to the management of foreign staff imposed by Decree 46. Education providers with foreign staff are strongly recommended to review the Decree themselves and seek further advice on its impacts.

AEI Vietnam also encourages any education provider affected by these changes to get in touch with us directly with feedback on how the changes will influence your business.

Contact:
Sally Burnard
Counsellor (Education)
Australian Embassy in Hanoi
sally.burnard@dfat.gov.au

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Impact of Vietnamese Government Decree 46 on employment of foreign workers in Vietnam