EuroCham proposes quicker work permit issuance

The issuance of work permits for foreign laborers in Vietnam should be sped up, the EuroCham proposed at a dialogue with Ho Chi Minh City authorities on Tuesday.

Some firms need about 2.5 months to complete procedures and receive work permits for their staff, and even four months in some cases, while the current legal framework stipulates that labor authorities must check applications within 10 days and deliver the results in five days upon completed applications, according to EuroCham.

As a result, the chamber suggested authorities shorten work permit issuance procedures and provide detailed instructions, in order to avoid multiple adjustments to applications, which are costly and time-consuming. It also recommended HCMC improve the online processing of applications.

EuroCham particularly gave an example of documents related to past experiences of laborers, which include their university degrees and confirmation of at least three years working in sectors relevant to their training. However, many experts no longer keep their university degrees or could not obtain past work confirmation due to their previous firms being dissolved.

In reply, Nguyen Van Lam, vice director of the HCMC Department of Labor, Invalids and Social Affairs (DOLISA), affirmed work permit applications often have problems of employment demand clarification, legal documents of laborers (like consular legalization of documents), and document formats.

He also noted HCMC has already sped up work permit issuance, particularly from 10 to seven days for processing employment demand clarification and from three to one day for re-issuance of work permits.

The official added that the municipal labor department would seek to accelerate the extension of work permits and confirmation of employment without work permits from five to three days.

As of end-2022, Vietnam was home to 119,656 expatriate workers, including 9,220 not subject to work permits, or 7.7% of the total; and 110,436 subject to work permits, or 92.3%, according to the Ministry of Labor, Invalids and Social Affairs.

In its recently-released White Book, EuroCham Vietnam highlighted the complexity and inconsistency in work permit application and extension. An example is working as a manager, executive, expert, or technical worker, which can fall into various categories under Decree 152/2020, leading to different processing by authorities of different localities.

EuroCham made several recommendations, like continuation of flexible policies per the government's Resolution 105 on assistance for enterprises, cooperatives, and household businesses amid the Covid-19 pandemic. Another is detailed guidance in work permit applications and municipal/provincial DOLISAs consistently applying regulations. EuroCham also suggested smooth operation of online systems for work permit applications. Besides, it proposed an express service for issuing pre-approval results and work permits as an additional option besides the current normal service for urgent cases, with possible high fees.