Vietnam Briefing provides comprehensive guidance on managing human resources in Vietnam, focusing on legal aspects and practical applications. Key points include:
Managing Human Resources
- Skilled Workforce: Vietnam offers a skilled and cost-effective labor market, attracting foreign investors.
- Population Dynamics: With a growing population (expected to reach 87 million), half under 30, there's a young workforce.
- Labor Code: This governs employer-employee rights and obligations, including work hours, labor agreements, social insurance, overtime, strikes, and contract terminations.
Recruitment
- Direct Hiring: Companies can now hire directly, simplifying internal recruitment processes.
- Age Requirements: Minimum age is 15, no maximum stated but retirement ages for males and females are 60 and 55 respectively.
- Foreign Employee Cap: Removed in 2008, allowing unlimited foreign hires as long as roles meet criteria for managers, executives, and specialists.
- Minimum Foreigners: Requires at least 3 expatriates per foreign enterprise, with a training plan for Vietnamese employees.
- Work Permit: Required for foreign employees working >3 months, except for specific roles.
- Application Process: Employers must submit work permit applications to local labor departments.
- Duration: Vietnamese work permits last up to 36 months, extendable.
- Deportation Risk: For those without work permits after 3 months, visas and residence cards won't be extended.
- Penalties: Fines for employers violating foreign employee rules ($268-$535).
Labor Contracts
- Types: Three types—definite term, indefinite term, and seasonal.
- Renewal: Contracts renew automatically after definite terms, becoming indefinite after two renewals.
- Duration: Seasonal contracts <12 months can't exceed annual jobs unless filling temporary positions.
- Form: Must be written and signed by both parties; verbal agreements for short-term (<3 months) or domestic tasks.
- Content: Includes job scope, hours, breaks, wages, location, duration, safety, hygiene, insurance, and job description.
Conclusion
Vietnam Briefing serves as a valuable resource for navigating the complexities of managing human resources in Vietnam, offering insights into legal frameworks, recruitment strategies, and contract management tailored to foreign investors.