Foreign invested businesses to provide employment services

Foreign direct investment businesses will be allowed to run employment services in Vietnam through a decree drafted to replace the government decree on employment generation.

Submitted to the government by the Ministry of Labour, War Invalids and Social Affairs (MoLISA), the draft decree allows businesses including foreign-invested enterprises, to set up establishments to provide employment services once they have fulfilled certain criteria.

The criteria includes depositing a security of 300 million VND at a bank, owning office premises and employing at least five college or university graduates.

In addition to the licenses issued by the Planning and Investment Service, these businesses are required to apply for licenses issued by the Labour, War Invalids and Social Affairs Services in the localities.

Deputy Head of the Employment Department of the MoLISA Nguyen Hai Van said the revised decree aims to remove obstacles for businesses in registering to provide employment services to meet requirements of an open-door economy and improve the business environment.

If the government issues the new decree, many foreign invested businesses will apply for licenses for operations in this area, Van said, adding that the supply of services for employees and employers in the labour market will be improved.

Since the government decree on employment was implemented in 2005, only 70 businesses have been licensed for operation in this area among 4,000 businesses applying for licenses.

A seminar on stipulations for businesses involved in providing employment services, currently held in Ho Chi Minh City by the global labour supply group Manpower and MoLISA, has been seen as a preparatory step for the group to enter this market.

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Foreign invested businesses to provide employment services