Legal Newsletter in November 2023 (Labor, Plant protection chemicals, and Land)

Legal newsletter

Our Newsletter #16 would lead you on the following:

LEGAL UPDATE

I. New Decree on foreign employees working in Vietnam and Vietnamese employees working for foreign organizations and individuals in Vietnam

On 18 September 2023, the Government issued Decree No. 70/2023/ND-CP (the “Decree 70/2023”) guiding the amendments and supplements to several articles of Decree No. 152/2020/ND-CP (the “Decree 152/2020”) on foreign employees working in Vietnam and recruitment and management of Vietnamese employees working for foreign organizations and individuals in Vietnam, which takes effect from the date of issuance with the following notable content. Decree 70/2023 took effect on 18 September 2023.

1. Amending several professional standards for foreign experts, executives, and technical employees

Adjusting some professional standards for foreign experts, executives, and technical employees as follows:

  1. Having confirmation of graduation from university or equivalent; and
  2. Having at least 3 years of experience corresponding with the job position in Vietnam.

In addition, for the title of executive director, this position has been expanded in scope as follows:

  1. The head of a branch, representative office, or business place of enterprise;
  2. The head who directly administers at least one field of the agency, organization or enterprise and reports directly to the head of the agency, organization or enterprise.

For foreign technical employees, Decree 70/2023 has eliminated the requirement to work in the corresponding specialized field; instead, these persons only need to be trained for at least 01 year and have a minimum of 03 years of experience in relevant job positions in Vietnam.

2. Reducing the period for reporting demand for foreign employees

When there is a need to use foreign employees, employers must pay attention to implementing procedures on reporting the need to use foreign employees and explain to the Ministry of Labor, War Invalids and Social Affairs (the “MOLISA”) or the Department of Labor, War Invalids and Social Affairs (the “DOLISA”) where the foreign employees are expected to work and whether or not Vietnamese employees meet the requirements of the job position.

Under Decree 152/2020, the reporting deadline is at least 30 days before the expected date to employ foreign employees. However, under Decree 70/2023, this deadline has been shortened to at least 15 days in advance.

The reporting period is at least 15 days in advance and applies to cases where the employer reports a change in the need for position, title, form of work, quantity, and location of work for foreign employees.

3. Changing the competent authority that has the authority to issue documents approving the use of foreign employees

According to Decree 152/2020, the authority to approve or disapprove the use of foreign employees belongs to MOLISA or the Provincial People’s Committee.

However, Decree 70/2023 grants authority in foreign labor management and licensing of local foreign employees to DOLISA; meanwhile, MOLISA has the authority to manage foreign employees nationwide, as well as manage Vietnamese people working for foreign organizations and individuals in Vietnam.

4. Adjusting some cases where demand to use foreign employees must be reported

Decree 70/2023 eliminated 04 categories of foreign employees who are not required to carry out procedures that determine the demand to employ foreign employees, including:

  1. Foreigners entering Vietnam to provide professional and engineering consulting services or perform other tasks intended for research, formulation, appraisal, supervision, evaluation, management, and execution of programs and projects using official development assistance (ODA) in accordance with regulations or agreement in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries;
  2. Foreigners who have been granted a communication and journalism practicing certificate in Vietnam by the Ministry of Foreign Affairs;
  3. Foreigners entering Vietnam to work as unpaid volunteers implementing an international treaty to which the Socialist Republic of Vietnam is a signatory with certification of a foreign diplomatic mission or international organization in Vietnam; and
  4. Foreigners who have been certified by the Ministry of Education and Training as foreign employee entering Vietnam for purposes of teaching, researching; or acting as a manager, executive, principal, or deputy principal of an educational institution, established in Vietnam under a proposal of a foreign diplomatic mission or intergovernmental organization.

In addition, Decree 70/2023 supplements 02 cases where the confirmation of foreign labor demand is not required:

  1. Foreign lawyers have been granted a license to practice law in Vietnam; and
  2. Foreigners married to a Vietnamese person and living in Vietnamese territory.
5. Adjusting cases in which foreign employees do not have to apply for a work permit

Adding 02 cases in which foreign employees entering Vietnam to work do not need a work permit:

  1. Foreigners who are sent to Vietnam by a foreign competent authority or organization to work as a manager or executive director at an educational institution run by a foreign diplomatic representative agency, or an intergovernmental organization proposed to be established in Vietnam; and
  2. Foreigners who are certified by the Ministry of Education and Training as foreign employees entering Vietnam for purposes of teaching, researching; or acting as a manager, executive, principal, or deputy principal of an educational institution, which is established in Vietnam under a proposal of a foreign diplomatic mission or intergovernmental organization.
6. Announcement of recruitment of employees on the website of MOLISA

From 01 January 2024, within at least 15 days from the expected date of reporting to MOLISA or DOLISA when the foreign employees are expected to work, the notification of recruitment of Vietnamese employee to positions expected to recruit foreign employees must be posted on the following websites:

  1. Website of MOLISA (specifically at the Department of Employment: www.doe.gov.vn); or
  2. The website of the Employment Service Center, which is established by the President of the People’s Committee of a province or centrally affiliated city.

The content of the recruitment announcement includes the following information: position and job title, job description, quantity, requirements for qualifications, experience, salary, time, and location of work.

Accordingly, after failing to recruit Vietnamese workers to positions recruiting foreign workers, employers are responsible for implementing procedures to determine the need to employ foreign workers.

II. New circular on the list of plant protection chemicals allowed to be used in Vietnam and the list of plant protection chemicals banned from use in Vietnam

On 24 October 2023, the Ministry of Agriculture and Rural Development issued Circular No. 09/2023/TT-BNNPTNT about the List of plant protection chemicals (“PPC”) allowed for use in Vietnam and the List of PPCs banned for use in Vietnam, which takes effect from 08 December 2023 with the following notable content:

1. Adding more types of PPC to the List of PPCs allowed for use in Vietnam

A total of 26 types of PPCs have been added to the List of PPCs allowed for use in Vietnam, specifically as follows:

  1. PPCs that prevent harmful organisms on crops with high export value such as grapefruit, durian, dragon fruit, etc.;
  2. Chemicals with good effectiveness and advanced forms such as OD, EW, WG, etc.; and
  3. Chemicals registered for use on vegetables, fruits, and tea that have a short quarantine period and low toxicity.
2. Maintaining the quantity of active ingredients banned from use in the List of PPCs banned from use in Vietnam

There are 31 banned active ingredients listed in the List of PPCs banned from use in Vietnam. The quantity of these active ingredients remains unchanged compared to Circular No. 19/2022/TT-BNNPTNT.

III. New decision guiding the reduction of land rent in 2023

On 03 October 2023, the Prime Minister issued Decision 25/2023/QD-TTg on reducing land rent in 2023 that will be effective from 20 November 2023 with the following notable content:

1. Regulated entities

The following individuals and organizations are eligible to apply the regulations on land rent reduction in 2023:

  1. Organizations, units, enterprises, households or individuals that are directly leasing land from the State under decisions or contracts or certificates of land-use rights and rights to ownership of houses and other property on land issued by competent regulatory authorities via the method of land lease with an annual rental payment (hereinafter referred to as “Land Lessees”); and
  2. Land Lessees who are ineligible for exemption from or reduction in land rents, those whose exemption or reduction periods have expired, and those whose land rents are reduced according to the regulations of land laws (Land Law and documents elaborating Land Law) and other relevant laws.
2. The land rent reduction

A 30% reduction in land rents payable in 2023 shall be given to Land Lessees; the reduction shall apply to land rents incurred before 2023 and late payment interests thereon (if any).

The reduction in land rents prescribed above shall apply to land rents payable in 2023 as prescribed by laws. If Land Lessees are given a reduction in land rents as prescribed and/or a deduction of compensation and ground clearance from land rents under regulations of laws on land rents, the 30% reduction shall apply to land rents payable (if any) after reduction or/and deduction (except for other cases prescribed by law).

3. The procedures for reduction in land rent
  1. Step 1: The Land Lessees prepare 01 set of documents to request land rent reduction, including:
    1. Land Lessee’s request for land rent reduction in 2023 is issued together with Decision 25/2023/QD-TTg; and
    2. Copies of the leasing decision or contract, or certificate of land use rights and rights to ownership of house and other properties on land issued by competent state authorities.
  2. Step 2: Apply for land rent reduction to the following competent authorities:
    1. Tax authority assigned to collect land rents;
    2. Economic Zone Management Board;
    3. Hi-Tech Park Management Board; and
    4. Another agency as prescribed by laws on tax administration.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at consult@blawyersvn.com. We would love to hear from you.

Date: 29 November 2023

Writer: BLawyers Vietnam

Legal News and Update Team

PUBLISHED ARTICLES

DIGITAL AUDIO PROGRAM

PUBLISHED LEGAL NEWSLETTERS

CONTACT US

Legal News and Update Team
📩 legalnews@blawyersvn.com

For Downloading:

Newsletter #16 (EN version)

Maybe you are interested in reading other Newsletters of BLawyers Vietnam: Newsletter in August 2023/ Newsletter in September 2023

blawyersvn-cta-image

Request a consultation

To schedule a meeting with BLawyers Vietnam’s attorneys, please call us or complete the intake form below. We will respond within 24 hours.

This field is for validation purposes and should be left unchanged.