Regulations Decree 34 for the Employment of Foreign Workers in Vietnam

The Vietnamese government has issued Decree 34/2008/ND-CP (“Decree 34″) to replace all previous regulations on the employment of foreign nationals in Vietnam. Courtesy of VN News.

New Percentage Cap on Employment of Foreign Nationals

Decree 34 removes the three percent cap on the number of foreign national employees a Vietnamese entity may hire. However, international entities with intra-company transferees from abroad now must have at least 20% of their managers, executives, and “specialists” comprised of Vietnamese citizens. “Specialists” include foreign nationals with considerable experience in production, business administration, or management, or a high-level of qualifications and expertise in research, technical knowledge, or equipment management.

Work Permit Exemptions Eliminated

The following categories of foreign nationals are no longer exempt from requiring work authorization: (1) heads of foreign branch and representative offices, and (2) employees of foreign-based contractors. Individuals in these categories must obtain work authorization by July 12, 2008 in order to continue working in Vietnam.

Decree 34 went into effect on April 12, 2008. The Vietnamese government is expected to issue further guidelines on its implementation.