Vietnam: What are the conditions for establishing a Vietnamese labor export company? What are the details of Vietnamese guest worker service?

"What are the conditions for establishing a Vietnamese labor export company? What are the operating contents of a Vietnamese labor export company?" - asked a reader

What are the activities of Vietnamese guest worker service?

Pursuant to Article 8 of the Law on Vietnamese guest workers in 2020 on provision of Vietnamese guest worker service as follows:

Provision of Vietnamese guest worker service
1. Provision of Vietnamese guest worker service is a conditional line of business and shall only be provided by Vietnamese enterprises having license for providing Vietnamese guest worker service issued by Minister of Labor – War Invalids and Social Affairs.
2. Vietnamese enterprises providing Vietnamese guest worker service (hereinafter referred to as “service enterprises”) must maintain requirements specified under Article 10 of this Law and satisfy demands of each specific market, profession and sector during operations.

What are the details of Vietnamese guest worker service?

Pursuant to Article 9 of the Law on Vietnamese guest workers in 2020 on details of Vietnamese guest worker service as follows:

Details of Vietnamese guest worker service
1. Signing and executing contracts and agreements related to provision of Vietnamese guest workers.
2. Searching and developing overseas labor market; providing information, advertisement and advice regarding overseas employment opportunity.
3. Preparing workforce and recruiting workers.
4. Organizing craft improvement, foreign languages and orientation education for workers before working abroad.
5. Managing workers; protecting rights and legal benefits of guest workers.
6. Executing policies for guest workers.
7. Liquidating contracts for Vietnamese guest worker service provision.
8. Providing employment for repatriating workers.


What are the conditions for establishing a Vietnamese labor export company?

Pursuant to Article 9 of the Law on Vietnamese guest workers in 2020 on the conditions for establishing a Vietnamese labor exporting company as follows:

Eligibility for issuance of license for provision of Vietnamese guest worker service
1. An enterprise shall be issued with license for provision of Vietnamese guest worker service if the enterprise:
a) has at least VND 5 billion of charter capital; has owners, members and shareholders who are domestic investors according to Law on Investment; and
b) has made deposit payments according to Article 24 of this Law; and
c) has Vietnamese nationals as legal representatives with at least higher education level and at least 5 years of experience in providing Vietnamese guest worker service or employment services; is not criminally prosecuted; has no criminal records regarding violation to national security, charges that violate life, health, self-esteem or dignity of human beings, fraudulence for appropriation, credibility abuse for appropriation, false advertisement, manipulating customers, organizing or allowing other individuals to migrate or stay in Vietnam illegally, organizing or allowing other individuals to travel abroad or stay abroad illegally, forcing other individuals to travel abroad or stay abroad illegally;
d) has adequate number of professional employees to implement provisions of Article 9 of this Law;
dd) has adequate facilities of enterprises or is continuously hired by enterprises to satisfy orientation education for Vietnamese guest workers;
e) has a web page.
2. Government shall elaborate this Article.

Deposit payments of service enterprises are specified in Article 24 of the Law on Vietnamese guest worker service in 2020 as follows:

Deposit payments of service enterprises
1. Deposit payments of service enterprises shall be deposited in banks and shall be used in case service enterprises fail to adequately execute obligations in provision of Vietnamese guest worker service at request of competent authorities.
Within 30 days from the date on which deposit payments are used, service enterprises must return used amount and ensure the prescribed deposit payment.
2. In the case prescribed under Point b Clause 3 of Article 29 of this Law, deposit payments of service enterprises shall be used by Ministry of Labor – War Invalids and Social Affairs to pay for additional obligations for workers who have not liquidated contracts for provision of Vietnamese guest worker service at the time of transfer; after subtracting banking service fee, any of remaining deposit payments shall be used by service enterprises to pay for other debts according to regulations and law on bankruptcy.
3. The Government shall elaborate deposit payments and management, use thereof and cases in which enterprises are dissolved, having their license revoked or suspended.

Thus, the establishment of a labor export company requires many elements. Except for having 5 billion VND of charter capital or more and implementing deposit payments, the establishment of a labor export company also requires facilities, website; must ensure a sufficient number of professional employees under the regulations. Besides, a labor export company must have legal representatives being Vietnamese citizens with at least higher education level and at least 5 years of experience in providing Vietnamese guest worker service or employment services; without criminal records.

Thư Viện Pháp Luật

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