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Foreigners to be directors of Vietnamese companies need to meet the conditions of professional qualifications, management experience and legality. They must have a valid work permit, temporary residence card and business registration. Hiring foreign directors can bring benefits in terms of international experience and market expansion, but also carries risks of cultural barriers and high costs. The following article will analyze the relevant requirements and regulations in detail.
The Law on Enterprise 2020 allows Vietnamese companies to hire foreigners as directors. This opens up opportunities for businesses to access high-quality international human resources. However, the following conditions need to be met:
Pursuant to Clause 1, Article 63 of the Law on Enterprises 2020, the director or general director of the company is the person who runs daily business activities and is responsible to the higher management agency. The company may have one or more directors depending on the provisions of the charter.
To work legally in Vietnam, foreigners must meet the conditions of professional capacity, experience and complete procedures for applying for a work permit. This process ensures that foreigners are capable of assuming senior management positions and comply with Vietnamese law.
Hiring foreign directors also depends on the type of business and the specific regulations of each industry. Some sectors may impose restrictions on the appointment of foreigners to senior management positions to protect national interests.
Foreigners working in Vietnam must comply with strict legal regulations. Article 151 of the 2019 Labor Code sets out specific requirements for foreign workers in Vietnam. These conditions are intended to ensure the quality of human resources and protect the domestic labor market.
Foreigners who want to take on director positions at Vietnamese companies must meet strict standards and conditions. Article 64 of the Law on Enterprise 2020 provides detailed regulations on this issue, to ensure the management capacity and legal compliance of people holding this important position.
Hiring foreigners as directors of Vietnamese companies brings both benefits and risks. This decision requires careful consideration from the business side, based on the company’s development strategy and specific conditions.
In terms of benefits, foreign directors often bring valuable international experience and expertise. They can introduce new ideas and strategies, helping businesses access and expand global markets more effectively. Their international relationship network is also an important asset, facilitating connections with foreign partners, investors and customers.
The presence of foreign directors can enhance a company’s reputation and image, especially in fields that require international expertise. Their diverse management thinking and modern working methods can drive process improvements, increase productivity and work quality across the enterprise.
However, hiring foreign directors also poses many risks. Language and cultural barriers can cause difficulties in communication and management, leading to reduced work efficiency. Limited knowledge of local laws can lead to unexpected violations of tax, labor or other regulations.
The cost of hiring foreign directors is often higher than that of domestic directors, creating financial pressure for businesses. Complicated administrative procedures related to work permits, temporary residence cards and other legal documents also require considerable time and effort to complete.
Businesses need to carefully consider the benefits and risks and develop an effective risk management plan when deciding to hire foreign directors. This requires careful financial, legal and human resource management preparation to ensure the hiring and working process goes smoothly, bringing optimal efficiency to the business.
Long Phan provides professional consulting services on conditions for foreigners to be directors of Vietnamese companies. Our team of experts will assist customers with the following issues:
With extensive experience in the field of business consulting, we are committed to providing optimal solutions, helping your business comply with the law and achieve high efficiency in hiring foreign directors. Contact us immediately via hotline 0906735386 for detailed advice and timely support.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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