Is it possible to make a deposit to set up dispatching agencies at foreign bank branches in Vietnam?

Is it possible to make a deposit to set up dispatching agencies at foreign bank branches in Vietnam?

Pursuant to Article 15 of Decree 145/2020/ND-CP stipulating payment and use of deposits as follows:

1. Enterprises shall pay the deposits specified in Clause 2 Article 21 of this Decree at Vietnamese commercial banks or foreign bank branches (FBB) that are established and operating in accordance with Vietnam’s law (hereinafter referred to as “receiving banks").

2. The deposits shall be used for payment of salaries, social insurance, health insurance, unemployment insurance, occupational accident and disease insurance premiums and provision of other benefits for dispatched employees in accordance with the employment contracts, collective bargaining agreements, rules and regulations of the dispatching agencies; payment of compensation to the dispatched employees in case the dispatching agency violates the employment contracts or causes damage to the dispatched employees due to failure to protect lawful rights and interests of the dispatched employees.

Thus, you can choose a foreign bank branch legally established and operating in Vietnam to make an deposit for establishment.

Does the deposit for establishment of dispatching agencies receive interest on these deposits in Vietnam?

According to Article 16 of Decree 145/2020/ND-CP, payment of deposits is as follows:

1. The dispatching agency shall pay deposits will receive an interest on these deposits in accordance with regulations of the receiving bank and law.

2. The receiving bank shall issue a certificate of deposit payment (Form No. 01/PLIII in Appendix III hereof) after the dispatching agency completes the depositing procedures. In case any of the information on the certificate is changed (name, headquarters address, deposit account number), the dispatching agency shall send a written request and supporting documents to the bank.

According to this Article, the dispatching agency is still entitled to interest from the deposit as agreed with the bank receiving the deposit and in accordance with the provisions of law in Vietnam.

What are deposit withdrawal procedures for dispatching agencies in Vietnam?

In Clause 4, Article 18 of Decree 145/2020/ND-CP stipulates as follows:

4. Deposit withdrawal procedures:

a) The dispatching agency shall submit 01 application prescribed in Clause 2 of this Article to the Department of Labor, War Invalids and Social Affairs of the province where it is headquartered;

b) The Department of Labor, War Invalids and Social Affairs shall receive the application, issue a receipt note specifying the date of receipt; verify the application within 05 working days from the day on which adequate documents are received and submit it to the President of the People’s Committee of the province for decision;

c) Within 05 working days from the receipt of the application from the Department of Labor, War Invalids and Social Affairs, the President of the People’s Committee of the province shall decide whether to issue the permission for deposit withdrawal and send it to the dispatching agency and the receiving bank. If the application is rejected, the President of the People’s Committee of the province shall send a written response to the dispatching agency specifying the reasons for rejecting;

d) After the written permission is issued by the President of the People’s Committee of the province, the dispatching agency shall submit the application specified in Clause 3 of this Article to the receiving bank;

dd) If the application is satisfactory, the receiving bank shall allow the dispatching agency to withdraw the deposit within 01 working day from the day on which the application is received.

In the cases of deposit withdrawal specified in Point a and Point b Clause 1 of this Article, the amounts and compensations to the dispatched employees shall be directly paid by the receiving bank under the plan approved by the President of the People’s Committee of the province after deducting banking fees.

Thus, the dispatching agency wants to withdraw the deposit need to carry out the procedures specified above in Vietnam.

Best Regards!