Vietnam: The amount of margin deposit of enterprises organizing guest worker programs in form of internship equals 10% of a one-way business class air ticket

According to Decree No. 38/2020/NĐ-CP of Vietnam’s Government, amount of margin deposit of enterprises organizing guest worker programs in form of internship to improve personal skills shall equal 10% of a one-way business class air ticket at the time of placing margin deposit from receiving countries to VIetnam depending on number of guest workers under internship contracts.

Besides,  clearly states that margin deposit in implementation of internship agreements must comply with the following provisions:

- Margin deposit of enterprises organizing guest worker programs in the form of internship to improve personal skills shall be utilized by competent regulatory agencies to deal with issues in case the enterprises fail to adequately fulfill obligations regarding organizing guest worker programs in the form of internship to improve personal skills.

- Enterprises organizing guest worker programs in the form of internships shall place margin deposit in financial institutions.

- Financial institutions and enterprises shall comply with this Decree and relevant law provisions. Financial institutions where the enterprises place margin deposit shall confirm using Form No. 5 under Annex II attached to this Decree.

Use and settlement of margin deposit in implementation of internship contracts are specified in Article 7 of Decree No. 38/2020/NĐ-CP as follows:

- Chairpersons of provincial People’s COmmittees may use the margin deposit as specified in Clause 1 Article 15 of this Decree; confirm to let financial institutions to repay margin deposit and make settlement for enterprises organizing guest worker programs in form of internship to improve personal skills under contracts for organizing guest worker programs in form of internships to improve personal skills within 90 days.

- Minister of Labor – War Invalids and Social Affairs may use the margin deposit as specified in Clause 1 Article 15 of this Decree; confirm to enable financial institutions to repay the margin deposit and make settlement for enterprises organizing guest worker programs in form of internship to improve personal skills under contracts for organizing guest worker programs in form of internships to improve personal skills within 90 days.

- Chairpersons of provincial People’s Committees and Minister of Labor – War Invalids and Social Affairs shall request financial institutions in writing to withdraw or extract margin deposit of enterprises for contents specified in Clause 1 Article 15 of this Decree.

View more details at Decree No. 38/2020/NĐ-CP of Vietnam’s Government, effective from May 20, 2020.

Le Hai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE