Currently, Vietnam is on the track of economic integration with key capital sources coming from foreign investors, spread across 139 countries and territories around the world. However, despite having received many successes over the past 30 years from foreign direct investment (FDI), Vietnam’s management for work permits for foreigners still has many shortcomings and difficulties that limit its expansion to attract many high-quality foreign investment capital sources.
1. Vietnam market – An attracting country for foreign investment
Facing of common world difficulties such as the COVID-19 pandemic and international tensions, policies to encourage FDI in Vietnam play a particularly important role in attracting high-quality investment capital competitively compared to other countries in the region.
Although Vietnam has made great strides in attracting investment capital with new-generation free trade agreements such as CPTPP or EVFTA, a large part of foreign investors still realize many difficulties and inadequacies when investing in Vietnam. In particular, when investors apply for work permits for foreign workers in Vietnam, there are still many limitations and difficulties in procedures and regulations.
2. Difficulties in regulation for foreign labors
Currently, Vietnam is applying a relatively strict management policy for foreign workers working in Vietnam in cases requiring work permits specified in legal documents such as:
The provisions specified in Section 3 of the Labor Code No. 45/2019/QH14, as well as the guiding regulations in Decree No.152/2020/ND-CP on foreign workers working in Vietnam and recruiting and managing Vietnamese employees working for foreign organizations and individuals in Vietnam, stipulating many strict conditions and procedures for recruiting foreign workers, leading to difficulties in practical application, inhibiting the development of enterprises in particular and the Vietnamese economy in general.
The setting of these regulations is implemented in the direction of development, prioritizing and protecting the source of employment for domestic workers, and minimizing the use and recruitment of foreign workers. However, that has led to many businesses in Vietnam lacking a workforce with high professional and technical qualifications.
The restriction on recruiting foreign workers also makes foreign investors feel that Vietnam is not yet an open market for foreign factors, which can affect their investment decisions.
3. Solving investment problems of foreign enterprises
Most foreign investors, after investing in Vietnam, have the common opinion that although Vietnam has many strengths, especially in economic potential, Vietnam still has many limitations that make it difficult for investors to invest and make them feel ‘disappointment’. Not only foreign investors but also domestic investors are also realizing the above inadequacies and difficulties in attracting foreign investment capital into Vietnam.
Complicated legal procedures, costly costs, and lack of management, supply or infrastructure, lead to many domestic and foreign investors feeling apprehensive when doing business in Vietnam.
In order to solve these difficulties, enterprises and state agencies need to actively cooperate with each other to remove each obstacle and difficulty so that Vietnam is truly an ideal investment destination not only in Southeast Asia but also around the world.
Regarding labor resources, enterprises can consider cooperating with companies and enterprises providing seasonal labor with prestige and high efficiency, meeting the urgent production needs of enterprises in each time.
4. About us
HMLF is a Law Firm to provide legal services to Enterprises especially FDI companies that want to invest in Vietnam. With a team of experts and staff of HMLF try to provide optimal solutions to bring customers satisfaction when experiencing legal services.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: 0937215585
Email: hmlf.vn