Foreign Labor Demand Report Exemption

Regulations under Decree 152/2020/ND-CP and Decree 70/2023/ND-CP define critical legal requirements for employing foreign nationals. A clear understanding of Foreign Labor Demand Report Exemption cases allows businesses to streamline recruitment, conserve resources, and ensure compliance with Vietnamese labor law. This analysis specifies each case for exemption, providing core information for correct application by employers.

Legal Obligation for the Foreign Labor Demand Report

Under Article 4 of Decree 152/2020/ND-CP, amended by Decree 70/2023/ND-CP, an employer must determine the need for foreign employees before recruitment. The employer must submit an explanatory report on the demand for foreign labor for each job position that Vietnamese workers cannot fill.

However, specific exceptions exist. If a foreign national falls under the cases outlined in Point b, Clause 1, Article 4 of this Decree, the enterprise benefits from a Foreign Labor Demand Report Exemption.

>>> See More: Report explaining and changing the need to use foreign workers

Cases of Foreign Labor Demand Report Exemption

Point b, Clause 1, Article 4 of Decree 152/2020/ND-CP, amended by Decree 70/2023/ND-CP, specifies the cases qualifying for a Foreign Labor Demand Report Exemption:

• Chief of a representative office, project, or the individual primarily responsible for the operations of an international organization or foreign non-governmental organization in Vietnam.
• Foreigners entering Vietnam for less than three months to offer services or to handle complex technical or technological incidents that current Vietnamese and foreign experts in Vietnam cannot resolve.
• Foreign lawyers holding a law practice license in Vietnam under the Law on Lawyers.
• Foreigners married to Vietnamese citizens and residing in Vietnamese territory.
• The owner or a capital-contributing member of a limited liability company with a capital contribution value of VND 3 billion or more.
• The Chairperson or a member of the Board of Directors of a joint-stock company with a capital contribution value of VND 3 billion or more.
• Individuals entering Vietnam to provide expert and technical consulting services for ODA research, appraisal, monitoring, and implementation programs.
• Individuals licensed by the Ministry of Foreign Affairs for press and information activities, and volunteers under regulations.
• Individuals working in manager or expert positions for a period of less than 30 days and no more than three times per year.
• Students undertaking internships and relatives of members of foreign representative agencies.

Employers recruiting individuals in these categories do not need to perform the foreign labor demand report procedure.

Procedure for the Foreign Labor Demand Report (Non-Exempt Cases)

For all other cases, businesses must follow the foreign labor demand report process as stipulated in Decree 152/2020/ND-CP and Decree 70/2023/ND-CP.

Step 1: Dossier Preparation

• The employer prepares an explanatory report using Form No. 01/PLI from the Appendix of Decree 152/2020/ND-CP, as amended by Decree 70/2023/ND-CP.
• The dossier must detail the demand for foreign labor, including the current labor situation, job descriptions, and competency requirements.
• The enterprise must provide a well-grounded justification for not recruiting a local worker for the position.
• The form of work must be specified according to Clause 1, Article 2 of Decree 152/2020/ND-CP, such as employment contracts, intra-corporate transfers, or service provider contracts.

Step 2: Dossier Submission

• According to Clause 2, Article 1 of Decree 70/2023/ND-CP, the employer submits the dossier to the Ministry of Labour – Invalids and Social Affairs (MOLISA) or the provincial Department of Labour – Invalids and Social Affairs.
• Submission methods include direct submission, authorized representation, or online submission via a verified account.

Step 3: Await Result

• The processing time for an approval letter is 10 working days from the receipt of a complete and valid dossier.

Expert Guidance by Long Phan Consulting Company

Long Phan Consulting Company provides professional services for the foreign labor demand report process. Our team of experienced lawyers offers:

• Consultation to determine if a Foreign Labor Demand Report Exemption applies.
• Dossier preparation and drafting of explanatory reports.
• Guidance on the complete foreign labor demand report process.
• Authorized representation to submit dossiers and work with state agencies.
• Consultation on applying for a work permit for a foreigner after registration.

We deliver services with reasonable fees and rapid processing times. Long Phan Consulting is ready to resolve all issues related to the legal and effective use of foreign labor.

Frequently Addressed Topics

Does exemption from the foreign labor demand report also mean exemption from a work permit?

No. These are two separate procedures. Exemption from registering the labor demand does not mean exemption from a work permit. Many exempt cases for the report still require a work permit or a confirmation of work permit exemption.

What penalties does a business face for not submitting the report if not exempt?

The business may face administrative fines. More importantly, lacking the approval letter for the foreign labor demand report is a direct obstacle that prevents the enterprise from completing the work permit application for the foreign employee.

What should an enterprise do if its foreign labor demand report is rejected?

The competent authority will issue a written notice stating the reason for rejection. The enterprise must carefully review this reason, adjust or supplement the information and documents as required, and re-submit the dossier. Common reasons for rejection include an unconvincing justification or an inaccurate job description.

What criteria define a “complex technical or technological incident”?

The law does not provide a rigid definition. It is understood as an unforeseeable incident that seriously affects production or business and requires a high level of technical expertise that is unavailable in Vietnam. The enterprise must be able to prove the complexity and urgency of the incident.

How is the 3 billion VND capital contribution for an LLC owner proven?

The capital value must be certified by official legal documents, including the Enterprise Registration Certificate and a bank confirmation that the capital has been fully deposited into the company’s capital account. A declaration in the company charter alone is insufficient.

Are there other conditions for a foreigner married to a Vietnamese citizen to be exempt?

The core conditions are a valid Marriage Certificate and proof of residence in Vietnam (e.g., a Temporary Residence Card or Permanent Residence Card). The regulation aims to facilitate family integration.

Is the 10-working-day timeline for approval absolute?

The 10-working-day period begins upon receipt of a complete and valid dossier. Delays can arise if the submitted dossier is incomplete, information is inaccurate, or the state agency requires more time to verify the job position and justification. A foreign labor demand report requires accuracy.

Conclusion

This document has systematized cases of Foreign Labor Demand Report Exemption under current law. A critical point is that exemption from this report does not mean exemption from a work permit. Enterprises must distinguish between these two legal procedures for absolute compliance. Mastery of these regulations enables businesses to be proactive in human resources planning and avoid unnecessary risks.

For expert consultation and support with foreign labor procedures, contact Long Phan Consulting Company via hotline 1900.63.63.89.