Expand work permit validity, apply law consistently to maintain foreign investment success: VBF exec

Expanding the geographical validity of work permits and ensuring consistent application of the law across provinces are essential for Vietnam’s continued success as a global investment destination, says Colin Blackwell, head of the human resources sub-group at Vietnam Business Forum (VBF).

Blackwell’s advice was rendered at a “2024 policy dialogue” jointly organized Wednesday by the Ho Chi Minh City People's Committee and VBF.

He made five “practical” recommendations regarding human resources (HR), particularly in the processing of work permits for foreign executives and specialists.

The first recommendation was to improve flexibility and understanding with regard to documentation requirements. For high-tech and green growth sectors, some flexibility in the documentation was needed in issuing work permits, he said.

These industries were evolving quickly, and standard qualifications may not yet exist in Vietnam, he noted. Being flexible would help Vietnam attract top talent in these emerging sectors and enable knowledge transfer, which are vital for the country’s future.

The second recommendation was to expand geographical validity of work permits. Current regulations requiring foreign employees to apply for a work permit at their intended place of work and updating each work location when they are sent to work in different localities were impractical, Blackwell said.

Although Decree 70 introduced the possibility of a single work permit for multiple locations through the labor ministry (MoLISA), this provision has been ineffective because there was a lack of detailed guidelines. Therefore, companies have faced challenges in obtaining clear guidance and approval from MoLISA.

Instead, it would be more effective and practical to issue a single work permit at the place of business establishment of the employer and to report to the province when employees are sent to another locality to work for more than 30 days.

Ensuring consistent application of the law across provinces was Blackwell’s third recommendation.

Businesses often encountered variations in how regulations were interpreted in different provinces, he said, adding that it was necessary to encourage local authorities to be consistent in following the legal framework, thus ensuring that the rules are applied uniformly. This will create greater confidence among businesses operating in different regions.

Fourthly, streamline the pre-approval process of hiring foreigners, which currently requires job postings at the provincial employment center followed by foreign labor demand approval at the provincial labor department. This process is burdensome and time-consuming, Blackwell asserted.

Introducing fast-track options for high-impact projects was his fifth and final recommendation. For large-scale investments or projects with a strong compliance record, a fast-track option for work permits could help reduce delays and allow executives and specialists to begin playing roles quickly.

Beyond work permits, it was also important to address broader administrative processes, particularly the alignment of visa and temporary residence card approvals across provinces, he noted.

Beyond specific recommendations regarding the issuance of work permits, Blackwell argued that education and training was a critical area where further support could have a significant impact on Vietnam’s workforce.

Short-term training centers, such as language schools and technical skill providers, are essential for developing the local talent pool. These centers should equip Vietnamese workers with skills needed to meet the demands of an increasingly competitive global market, he added.