Labor Export Service Conditions

Labor export service conditions in Vietnam are strictly regulated by the Law on Vietnamese Guest Workers. These regulations establish a legal framework to ensure enterprises operate professionally and transparently, with sufficient financial, human resource, and infrastructure capacity. This analysis from Long Phan Consulting Company details the legal requirements an enterprise must meet to obtain an operating license.

Scope of Labor Export Service Activities

The business of providing labor export services is a conditional sector with a clearly defined scope of activities. These activities are specified by law to manage the entire process, from preparing the domestic labor force to supporting workers upon their return.

Based on Article 9 of the 2020 Law on Vietnamese Guest Workers, core activities include establishing international partnerships and professionally managing workers. The enterprise is directly responsible for the quality and safety of workers throughout the contract period. This business demands strict adherence to regulations on contracts, training, and management.

Specific activities an enterprise must perform include:

• Contract Execution: Negotiating and signing labor supply contracts with foreign partners and individual employment contracts with each worker.
• Market Development: Researching, seeking, and expanding labor markets in countries and territories with demand, ensuring these markets are legal and safe.
• Labor Sourcing and Selection: Organizing the recruitment of workers who meet the criteria of the foreign employer, including professional qualifications, health, and experience.
• Training and Orientation: Providing vocational skills training, language courses, and orientation education on the laws, culture, and customs of the host country.
• Worker Management and Protection: Managing workers during their time abroad, promptly addressing issues, and protecting their legal rights and interests.
• Policy Implementation: Ensuring workers receive full benefits regarding salary, insurance, and working conditions as committed in their contracts.
• Contract Liquidation: Finalizing contracts when workers complete their term and return to Vietnam, settling all related financial and legal obligations.
• Post-Return Employment Support: Providing counseling and job placement assistance for workers after they return.

Labor Export Service Conditions

According to Article 8 of the 2020 Law on Vietnamese Guest Workers, only a Vietnamese enterprise with a License for Providing Services to Send Vietnamese Workers Abroad under Contract, issued by the Minister of Home Affairs, may conduct these activities. The service enterprise must maintain all legal conditions throughout its operation.

Enterprises must meet all licensing conditions specified in Article 10 of the Law and guided by Articles 4, 5, and 6 of Decree 112/2021/NĐ-CP.

Capital and Escrow Deposit Conditions

Financial capacity is a prerequisite for ensuring stability and risk management. The law requires a solid financial foundation, demonstrated through charter capital and a mandatory escrow deposit.

• Charter Capital: The enterprise must have a charter capital of at least VND 5 billion. All owners, members, or shareholders must be domestic investors as defined by the Law on Investment.
• Escrow Deposit: The enterprise must deposit funds into an escrow account at a commercial bank. According to Article 24 of the Law, this deposit is used solely to settle the enterprise’s obligations to workers upon request from a competent state authority. If the deposit is used, the enterprise must replenish it to the required level within 30 days. The required deposit is VND 2,000,000,000 (two billion dong). An enterprise that assigns tasks to a branch must deposit an additional VND 500,000,000 (five hundred million dong) for each assigned branch.

Legal Representative Conditions

The legal representative plays a key role in operations and legal accountability. The law sets strict standards for this position regarding nationality, qualifications, and experience, as specified in Point c, Clause 1, Article 10 of the Law.

• Nationality: Must be a Vietnamese citizen.
• Education: Must have a university degree or higher.
• Experience: Must have at least five years of experience in sending Vietnamese workers abroad or in the employment services sector.
• Legal Status: Must not be currently subject to criminal prosecution.
• Criminal Record: Must have no criminal record for national security offenses, crimes against life or human dignity, fraud, or organizing illegal immigration, among other specified offenses.

Professional Staff Conditions

The enterprise must have a professional team that is adequate in number and qualified to handle the complex operations of labor export. These labor export service conditions for personnel are as follows:

• Number: At least one dedicated professional staff member must be assigned to each main operational area defined in Article 9 of the Law.
• Qualifications: Staff must meet one of two standards:
  • A college degree or higher in law, humanities, social services, social sciences, or business and management.
  • A college degree or higher in another field but with at least two years of practical experience in sending workers abroad.
• Employment Contract: Professional staff must have a labor contract and be enrolled in compulsory social insurance with the enterprise.
• Branch Staff: A branch assigned to conduct labor export activities must also have at least one professional staff member for each assigned activity, meeting the same standards.

Facility Conditions for Orientation Education

Orientation education is a mandatory and crucial step. The law requires enterprises to have facilities that meet specific standards for this purpose. These facilities can be owned or leased long-term.

• Safety and Scale: Must be safe and hygienic; have classrooms and dormitories for at least 100 trainees at a time; and include a first-aid station.
• Classroom Standards: A minimum of 1.4 m² per trainee, with basic learning equipment.
• Dormitory Standards: A minimum of 3.5 m² per trainee, with basic living amenities; no more than 12 trainees per room; and separate areas for male and female trainees.
• Leased Facilities: If facilities are leased, the lease contract must be valid for at least two years at the time of the license application.

Website Conditions

Information transparency is essential. Article 6 of Decree 112/2021/NĐ-CP requires a labor export service enterprise to maintain an official website.

• Domain Name: Must use a Vietnamese national domain name (“.vn”).
• Public Content: Must publish the enterprise’s basic information, a scanned copy of its license, and detailed information about its labor export activities.
• Operation and Updates: The website must be continuously operational. The enterprise must update any changes (e.g., legal representative, address) within seven working days.

Meeting these labor export service conditions is mandatory not only for licensing but also for ongoing operations.

>>> See more at: Labor Export License: A Technical Guide.

Prohibited Acts in Labor Export Services

Article 7 of the 2020 Law on Vietnamese Guest Workers specifies prohibited acts. Violations can lead to severe penalties, from administrative fines to criminal prosecution and license revocation. These include:

• Deceiving workers through false information or advertising.
• Using labor export activities for illegal purposes like human trafficking or forced labor.
• Illegally collecting money from workers during recruitment.
• Collecting brokerage fees from workers.
• Charging service fees that do not comply with regulations.
• Sending workers to prohibited jobs (e.g., massage in entertainment centers, handling explosives, exposure to radioactive sources).
• Sending workers to areas with active or potential military conflict, radiation, contamination, or dangerous epidemics.

Consulting Services by Long Phan Consulting Company

Obtaining a license for labor export services is a complex legal process. Long Phan Consulting Company offers professional consulting services to help enterprises meet all labor export service conditions and complete procedures efficiently.

Our key services include:

• Comprehensive Conditions Assessment: Analyzing the enterprise’s current status regarding capital, personnel, and facilities against legal requirements.
• Dossier Preparation: Assisting in drafting and preparing a complete and accurate application dossier.
• Procedural Representation: Acting on the client’s behalf to submit the dossier to MOLISA, follow up on processing, and receive the license.
• Post-Licensing Legal Support: Advising on maintaining operational conditions and compliance with reporting requirements.

With an experienced team of lawyers and legal experts, Long Phan Consulting Company delivers optimal solutions, helping enterprises save time and costs while avoiding legal risks.

Frequently Asked Questions

Which state agency issues the labor export service license?

The Ministry of Home Affairs is the competent authority to issue, reissue, renew, and revoke the license.

What is the validity period of the license?

Current law does not specify a validity period. The license is indefinite, provided the enterprise continuously maintains all licensed labor export service conditions.

How long does it take to get a license after submitting a valid application?

Within 20 days of receiving a complete and valid dossier, the Minister of Home  will review and issue the license. A written response with reasons will be provided for any rejection.

Can a foreign-invested enterprise obtain this license?

No. The law requires that all owners, members, or shareholders be domestic investors.

How is the escrow deposit handled if the enterprise dissolves?

The deposit is returned after the enterprise has settled all obligations to workers, as confirmed by the Ministry of Home Affairs. The bank will only release the funds upon written approval from Ministry of Home Affairs.

What fees can an enterprise collect from workers?

A service enterprise may only collect a service fee from the worker according to the ceiling set by law and as agreed in the contract. Collecting brokerage fees is strictly prohibited.

Under what circumstances can a license be revoked?

A license can be revoked if the enterprise no longer meets one of the licensing conditions, submits fraudulent documents, allows another enterprise to use its license, or commits serious violations that harm workers.

What must an enterprise do when changing its legal representative or headquarters?

The enterprise must submit an application to amend the license to Ministry of Home Affairs. It can only operate with the new information after receiving written approval.

Conclusion

The labor export service is a conditional business sector requiring strict legal compliance. Meeting all standards is a significant challenge. To ensure a smooth and lawful licensing process, please contact us via hotline 1900 636389 for professional and effective support from our consulting service.