Hiring Talents for Recruitment outsourcing Vietnam
In recent years, at joint venture companies (JVs), 100% foreign capital operating in Vietnam, there has been a new trend in personnel selection. Previously, key positions and management in those companies were held by foreign employees and experts, but now the proportion of foreigners working is decreasing sharply, instead, Vietnamese personnel are gradually replacing them. Below, S4B Vietnam will update some news about HR compliance in Vietnam.
1. Foreign organizations and individuals are not allowed to directly recruit Vietnamese workers
On July 28, 2014, the Government issued Decree No. 75/2014/ND-CP detailing the implementation of a number of articles of the Vietnam labor law services on recruitment and management of Vietnamese workers working for foreign organizations and individuals in Vietnam. Here are some points worth noting:
1.1 Firstly, Vietnamese employees working for foreign organizations and individuals in Vietnam must be 18 years of age or older, have the ability to work, have full civil act capacity and must not be working in the police or military sectors, not be cadres or civil servants, and their spouses must not be working in jobs related to state secrets…
People who have been disciplined for disclosing state secrets or national security or who are being prosecuted for criminal liability, who are serving a criminal sentence by the Court or who have not had their criminal records cleared, have not expired, or are prohibited from practicing a profession or doing certain jobs according to the provisions of criminal law are also not recruited to work at these agencies.
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1.2 Second, the recruitment of Vietnamese workers to work for foreign organizations and individuals is carried out by one of the following three agencies: Organizations authorized by the Ministry of Foreign Affairs, Employment Service Centers established by the Ministry of Labor, War Invalids and Social Affairs, and Employment Service Centers established by the Chairman of the People’s Committee of provinces and centrally run cities. Foreign organizations and individuals are only allowed to directly recruit Vietnamese workers when the above agencies cannot recruit workers at the request of foreign organizations and individuals who need to recruit Vietnamese workers.
1.3 Third, to recruit Vietnamese workers, foreign organizations and individuals must send a written request to recruit Vietnamese workers to one of the three above agencies HR services in Vietnam. The document must clearly state the requirements for job positions, quantity, technical expertise, professional skills, foreign languages, and recruitment period; rights and obligations of Vietnamese employees and foreign organizations and individuals during the working process and upon termination of employment for each job position to be recruited.
After 15 working days from the date of receipt of the request from the foreign organization or individual, if the organization with authority to workforce leasing Vietnam or manage Vietnamese employees fails to select and introduce Vietnamese employees as requested by the foreign organization or individual, the foreign organization or individual may directly recruit Vietnamese employees. Foreign organizations and individuals must notify in writing, together with a copy of the labor contract signed with the Vietnamese employee, to the organization with authority to recruit and manage Vietnamese employees within 7 working days after signing the labor contract.
This Decree takes effect from September 15, 2014 and replaces Decrees No. 85/1998/ND-CP dated October 20, 1998; No. 46/1999/ND-CP dated July 1, 1999; 75/2001/ND-CP dated October 19, 2001.
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2. Recruitment at joint venture companies, 100% foreign capital: Vietnamese workers replace foreign experts
The target talents for foreign companies are mostly students who have graduated or are about to graduate from universities. Right from the time students prepare for internships, companies send orders to schools with very attractive invitations about the working environment, promotion opportunities and salary. Students are selected by companies mainly based on their academic results, usually those with high results in the “Top” of the course according to the school’s list.
Ms. Le Thi Hong Thanh – Human Resources Director of LD Company with Germany – said: “Selecting new graduates for training is one of the important strategies not only of our company but also of most foreign-invested companies that want to aim for. Localizing human resources will significantly reduce costs for the company because hiring experts or personnel from abroad to work in Vietnam costs many times more than recruiting domestic workers”.
In reality, the company’s policy of finding human resources is mostly based on academic ability rather than selecting experienced people for training, which is currently an important strategy of many companies. To attract talent, companies only need to do things like awarding scholarships, inviting interns and offering attractive salaries.
At S4B Vietnam, we specialize in HR service outsourcing, Recruitment outsourcing Vietnam, offering tailored solutions in executive search, payroll, staffing, workforce leasing, and compliance management. Our team ensures that your business finds the right talent while remaining fully compliant with Vietnam’s labor regulations.
Join us today and let us help you build a strong, skilled, and legally compliant workforce in Vietnam! Contact S4B Vietnam to explore our comprehensive HR compliance Vietnam services and drive your company’s success.
>>>Read more: Contract workforce Vietnam for Foreign Invested Enterprises (FIE)
S4B Vietnam
- Address: Unit 701B – 701C, Tower A, Handi Resco 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam.
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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