Policy and recommendation on administrative management of foreign labor bases for capability building of domestic labor

SUMMATION DISERTATION BY NGUYEN THI TUYET VAN
PREFACE
Administrative management of foreign labors in Vietnam is not new topics, but
it is always topical. Administrative management of foreign labors how to effectively,
while enhancing the capacity of domestic labor is the topic that interest disertation. In
this disertation, the author analyzes the legal status administrative management of
foreign labors, the actual use of foreign labors, and the authors also survey to find out
more about the inadequacies of policy, law to make recommendations as appropriate.
Specifically, in the disertation, the author has given data of foreign labors working in
Vietnam and analysis of the current legislation on labor contracts for foreign labors,
employment conditions use, recruitment procedures, workplace safety, compensation...
for foreign labors. Thus, the policies and regulations on foreign labor management
basically refer deeper, wider. Of course, if the regulations on foreign labors is strict it
will enhance the capacity of domestic labor. Finally, the authors make conclusions and
recommendations of the special products specifically with the Draft Law on foreign
labors.
Thus, the title of “Policy and Recommendations on Administrative Management
of Foreign Labor: Bases for capability building of domestic labor” is chosen to study.
The structure of dissertation includes 5 chapters.

CHAPTER I: INTRODUCTION
1.1. BACKGROUND OF STUDY
In today of international integration today, labors from one country to work for
other countries are indispensable situation. Vietnam as well as many other countries
around the world, the reception of foreign laborers working in Vietnam country was
inevitable. On othe hand, the open-door policy to attract foreign investment into
Vietnam and the economic development in the country, foreigners entering Vietnam to
work for enterprises and organizations of all economic sectors is inevitable. In fact,
many enterprises and organizations are wishing to recruit foreign labors. They are
enterprises of all economic sectors, politic and social organization of Vietnam and and
the contractor is an organization of Vietnam or foreign contractors in Vietnam, business

organizations and services under the State administrative agencies, armed forces,
Assembly Office of foreign and branches of foreign companies, representative offices of
economic organization, trade, finance, banking, insurance, science and technology,
culture, sports, education, health; the business units of the state project office of foreign

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or international in Vietnam, foreign law firm licensed to operate in Vietnam and the
cooperative.
On the basis of research policy practice, the provisions of the law on
administration management of foreign labors, the disertation provides some
recommendations for policy and regulations on administration management of labor
foreign: Bases for capability building of domestic labor.
Disertation shall be drafting the Act on foreign labors. This draft is built on the
basis of the evaluation of system policies and current legislation on the administrative
management of foreign labors, domestic labor capacity and survey of authors in 13
provinces / cities city in Vietnam.
1.2. STATEMENT OF THE PROBLEM
To implement this study, the author shall answer the following questions:
1. What are the policies/regulations of Vietnam on administrative management
of foreign labors?
2. What are the reasons led to enterprises of hiring foreign labors?
3. What policy/regulation should be reasonable to effectively administrative
management of foreign labors?
4. Which of the government policy/regulation that unreasonable to recomends
on the administrative management of foreign labor?
1.3. SIGNIFICANCE OF THE STUDY
This study has is usful for the following objects
- For the State:

The results of disertation is the basis for the State (policy makers, agencies of
State management of foreign labors) to review and consider the issuance of policies, law
in the future. Since it then contribute to the effective administrative management of
foreign labors in enterprises and organizations in Vietnam.
- For employers and foreign labors:
The disertation research will contribute to improve the rights and obligations of
the two subjects in the labor relation. In particularlly, the rights and obligations of
foreign labors will be completed towards harmonization with domestic labor for useful
of foreign labors and building capacity for domestic labor.

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- For researchers:
The results of the disertation are used as references in research, teaching
concern administrative management of foreign labors in particular higher education,
postgraduate and use this as documentation study for staff working in administrative
management agencies, it also contributes to providing justifications refer to civil
servants working in State management on foreign labors.
1.4. SCOPE AND LIMITATION OF THE STUDY
- Research theory: The policies and regulations of Vietnam on the administration
of foreign employees working in Vietnam.
- Research survey: 13 provinces / cities in Vietnam.
- Objects Survey: Office labor, the employers and foreign labors.
- The disertation is not research of Vietnamese labor working for a period
abroad; foreign labors working illegally in Vietnam.

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES
2.1. REVIEW OF RELATED STUDIES
After studying the domestic material and abroad material related to the topic of

disertation drawn some brief conclusions are as follows:
. Foreign labors are aware in some countries, including Vietnam. The country
has regulations to manage foreign labors.

. Foreign labor studied under different aspects:
- Labour migration in international law and Vietnam.
- Problems can move laborer in international economic integration.
- Social Insurance for foreign labors working in Vietnam.
- State management of foreign labors in Vietnam.
- Strengthening the management foreign labors.
- Policy for migrant labors.
Could be shown that, the problem foreign labor are interested in research
national and international.
No specialized research administration management for foreign labor: Bases for
capability building for domestic labor.
Vietnam is a country with rich human resources, however, some sectors still
need foreign labors with qualifications that Vietnam's labor did not meet. The
management and use foreign labors how to ensure capacity building for domestic labor
should take account of specific policies.

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2.2. THEORETICAL FRAMEWORK
In this part, the author presents theories related to:
- Administrative management of foreign labors;
- Foreign labors;
- The employer;
- Content of administrative management for foreign labors;
- These policies/ regulations on administrative management of foreign labors:

Recruitment, labor contracts, compensation, duration, labor safety – labor sanitation.
- The main reasons to hire foreign labors in Vietnam.
- The results and limitations in the administrative management of foreign labors
working in Vietnam.
2.3 CONCEPTUAL FRAMEWORK
From the above theory, the disertation proposed the following conceptual
framework, as follow:

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Policy/law

Government:
- Policy/law on
foreign labor.
- Policy/law
need to renew
- Good
policy/law

Recruitment

Reasonable
policy/law
Contract

13
provinces/
cities

Employer
Reasons the
hiring of
foreign labor

Compensation

Duration

Unreasonable
policy/law

Foreign labor
Reasons the
hiring of
foreign labor

Safety and
protection

Policy/law

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CHƯƠNG III
METHODOLOGY
3.1. Methods of collecting secondary data
Method of collecting secondary data is made as follows:

1. Review essay thesis, reports, scientific papers if they are relevant to the topic of
labor relation.
2. Check the Table of Content, select the relevant items to read.
3. Scan/skim the relevant parts to choose the appropriate information.
4. Systematize the collected relevant information. After systematizing, the
information is ready to be used in the Dissertation.
3.2. Methods of collecting primary data
Primary information was collected from a survey of 13 provinces/ cities in
Vietnam.
In order to get the primary information, the survey plan has to be made.
The survey plan consists of the following content:
1) Objective of the survey
2) Who are the respondents
3) How many respondents are needed?
4) How do we select the respondent?
5) Questionnaire and the contents of the survey?
6) What should be the appropriate time to conduct the survey?
7) Who are the interviewers? How to train them to conduct the survey?
8) How to collect, evaluate the questionnaire, code the information, entry the data
to worksheets, ready for processing?

Order

Order

Province/ city

Province/ city

1

Ha Noi

8

Đa Nang

2

Lang Son

9

Ba Rịa – Vung Tau

3

Ninh Binh

10

Binh Dương

4

Quang Ninh

11

Ho Chi Minh city

5

Nghe An

12

Đong Nai

6

Thanh Hoa

13

Phu Thọ

7

Quang Nam
Table: The provinces/ cities within the scope survey of the dissertation
There are three kind of interviewee in this study.

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The first object is the labor sector staff . This kind of interviewee was surveyed
about policies, regulations on administrative management of foreign labors and their
desire to have policies and regulations more reasonable in the future, especially is
desirable for the issuance of the Act on foreign labor.

Second kind of interviewer is enterprises that use foreign labors. This kind of
interviewer was surveyed about policies, regulations on administration of foreign labors
under their authority and their desire for the policy in the future, especially desirable
promulgating the Act on foreign labor.
The third kind of interviewee is foreign labors. This kind of interviewer was
collected information about the policies and regulations for them and their suggestions
for improving the administrative procedures related to foreign labors, particularly
desirable for the issuance of the Act on foreign labor.
The scope and application of the research in this disertation, the author choose
the sample sizes are as follows:

Respondents

Sample size

Foreign labors

400

Labor sector staff

90

Enterprise

65

Research Tools
Research tools are questionnaires. The questionnaire for the respondents to focus
on the following major contents

- General characteristics of foreign labors working in Vietnam.
- The foreign labors needs to manage it profile
- The information that foreign labors must register.
- The form of administration for foreign labors.
- The difficulties for enterprise/ organizations to implement regulations on
recruiting foreign labors.
- Understanding of foreign labors in the policies and regulations of Vietnam for
them.
- The channel to convey information to foreign labors.
- The period of the labor license for foreign labors working under labor
contracts.
- Comments on the issuance of the Law on foreign labors.

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The process of data collection
After completion of all preparations (received final approval of the TNU SLSU
and research outline approval of the Adviser for questionnaire content), the authors sent
questionnaires for the labor sector officials, enterprises that use foreign labor.
On the basis of the data collected, the authors have selected provinces / cities to
ensure the survey elements: foreign labors are working, all over in Vietnam.
The questionnaire sent to the respondents was transferred by express after
objects completed the survey questionnaire and send answers back to the authors
disertation aforementioned manner
CHƯƠNG IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Based on the survey results obtained, the authors present, analyze and interpret
data to focus on the following content:

1. Objects of surveys are foreign labors
- General characteristics of foreign labors working in Vietnam
The survey results showed that:
- The majority of foreign labors are male working in Vietnam (up 78.25%) and
at age of 30 to 40 at the most (45.75%), next at ages 20 to 30 accounted for 24.25%,
aged of 50 and older are accounted for less than 10%. The youngest one is 22 years old
and the oldest one was 60 years old.
- Regarding the occupation of foreign labors before working in Vietnam the
show: more than 51% is befow bacharlor level. to management, and only 35% as
technical expertise. When asked about the reasons for hiring foreign labors without
university degrees, the employer told the object this skilled and well experienced work
so they hired technical experts as so effective was not paid high salaries who have
university degrees.

- The mainly legal documents on foreign labors
82.5% of respondents know the Labor Code, whereas only about 40% of them
know. In particular, the number of people interested in the draft Decree detailing the
implementation of a number of articles of the Labor Code on employment of foreigners
working in Vietnam is very small, accounting for only 12.25%. This suggests that
foreign labors mostly just interested in the Labor Code - documents the highest legal
value, not attention to the guidelines of the law enforcement. Meanwhile, the Labor

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Code of the nature of framework legal, to better understand the provisions of the Code
need to pay more attention to the decrees and circulars.
The fact that there are differences of interest to the legal documents about
administrative management of foreign labors with qualified of workers. The foreign
labors have qualifications higher the attention and understanding of the code, decrees

and circulars better.
- The comments of respondents on the administrative management for foreign
labor through labors license
More than 51% of foreign labors thịnk should be issued labor license for all
foreign labors without taking into account the time to work. Only less than half the
number of respondents think that just need to issue labor license for foreign labors who
are working more than 3 months or more than 12 months . In our opinion this is the
legitimate aspirations of the workers desire to be licensed regardless of their working
time long - term or short -term. This is also consistent with the will of the manage
authorities of foreign labors to to strict manage labor, eliminate of illegal labor.

- Comment of respondents if it should proposed a specific Act on foreign labors
When is asked if it is necessary to propose a specific the Act on foreign labors,
more than 91.75% of interviewed foreign labors said as "necessary", 7.75% just said as
“unnecessary” and 0.25% did not answer the skeptics. The results showed that most
foreign labors are desirable for their own laws. This is explained, the object of foreign
labors have unique characteristics compared to domestic labor should be required to
have adequate laws to regulate. In addition, the current Labor Code only 8 article about
foreign labors, regulations specific guidance in the decrees and circulars. Meanwhile
foreign labors mostly interested in the Code, less concerned with decrees and circulars.
2. Objects of surveys are labor sector officers and employers
The majority of respondents (86.81% labor sector staff and 83.08% employers)
agree with management all foreign labors. Less than 20% of the respondents comments
that only labor management professional qualifications labor.
Results are quite consistent with the reality of Vietnam today on the situation of
foreign labors. This can be explained because the state policy of Vietnam is the
recruitment of foreign labors have professional qualifications, technical labor that
Vietnam did not meet the job, in fact, still unskilled workers to work in Vietnam, while
Vietnam workers with unemployment still notable numbers: urban: 3.30% rural: 1.42%.
Thus, tightening the management of foreign labors is inevitable, even to take measures

regular inspection and irregular inspection for all businesses / organizations that use

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foreign labors to strict implementation of the provisions of law, to ensure the interests of
domestic labor.
- The information of foreign labors to register
From 72.31% to 95.38% of the employers and from 87.91% to 97.80% of the
labor sector staff polled said that need to manage all the information: Full name, date of
birth, place of residence, passport number, technical expertise, the employment, work
location. Also some ideas that need some additional management information such as
marital status and family time are expected to work in Vietnam. Some other countries
are also interested in receiving marital status of foreign labors.
- Appropriate forms to manage foreign labors
Under the 4 forms of management of foreign labors that the author mentioned in
the questionnaires, application of labor card has 81.32% of the labor sector staff
comments and 70.77 of the employer comments that: Labor card is most appropriate in
Vietnam today. This can be explained because, as Vietnam does not have full database
of labor market, foreign labors, the labor card as a "labor passport". Aim to effectively
manage foreign labors and employers to quickly identify complete information about
the foreign labors.
- The difficulties for enterprises / organizations on the implementation of the
recruitment provisions to foreign labors
With the rate above 50% on the opinions of employers and 63% in the opinion
of labor sector staff answer that told to the difficulties of cumbersome procedures,
waste, long time too hard for enterprises or their organizations in the recruitment of
foreign labors. Only 21.54% in the opinions of employers and 28.57% of labor sector
staff said that no difficulty. The rest are no comments.
The same with the reform of administrative procedures in the labor sector, such

as registration of the wage scale, payroll, collective agreements and even some
management procedures of foreign labors has gradually improved. However, the state
authorities continued research to improve some procedures, such as shortening the time
for issuing of labor license, preparing the conditions for granting labor license to
foreigners through internet.
- Additional provisions of the law on sectors that is not allowed to employ of the
place and work banned the use of foreign labors
In this regard there are nearly 88% of employers and nearly 87% of labor sector
staff said that is necessary the need to supplement the provisions of the law on restricted
sectors that is not allowed to use of foreign labors. These issues are essential to the

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ensuring security and politics of a national.
- The necessity to promulgate the Act on foreign labor
96.70% labor sector officer, and 95.38% of employers that is need to enact
specific laws on foreign labor. This represents the expectations of the stakeholders
involved in the management of foreign labor in Vietnam are needed Act on foreign
labor, this practice is consistent with the number of foreign laborers in working in
Vietnam is increasing, managed objects have different characteristics that should not
melding into other Acts.
CHƯƠNG V:
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1. main Findings
- The policies and regulations for the administration foreign labor mainly in the
regulation of the system of labor law.
+ Labor Code;
+ The decrees and circulars to implement the Labor Code.
- The main reason that Vietnam hiring foreign labor

+ Due to international integration;
+ The quality of human resources in Vietnam is still low, did not meet a number
of positions, industries requiring professional qualifications and professional skills.
- Some provisions of the law were reasonable for the administration of foreign
labor:
The conditions set for foreign laborers working in Vietnam will continue to be
regulated under the direction of high-level requirements, stricter regulations on personal
conditions and tight and recruitment procedures to achieve the objective of taking
advantage of labor-management level and advanced science and technology from
foreign countries, and protection for domestic labor.
Regulation on the rights of foreigners working in Vietnam increasingly
approach the principle of equality between domestic labor and foreign labor:
Specific regulations, more rational about issues related to grant work permits,
such as expanding the audience of foreigners working in Vietnam do not need to apply
for work permits granted to create favorable conditions for foreigners working in
Vietnam in specific cases.
Assigned specific responsibility for the management agencies in the
administration management of foreign laborers working in Vietnam.

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- Some provisions of the law were not unreasonable for the administrative
management of foreign labor:
Provisions of the law on procedures when recruiting foreign labor who are not as
necessary. Because, to recruit foreigners with higher qualification as specified in the
laws of the State, recruitment agencies have conducted many different procedures in
order to identify the main sources of recruitment determined. Moreover, the law has not
regulated by way of informing others may be more effective as notice on Intenet
(Website, Blog ...).

Regulations for candidate registration dossiers (for employees working for
organizations, enterprises in Vietnam in the form of labor contract) causes difficulties
for the implementation of the enterprises/ organization.
Although the law stipulates the responsibilities of the ministries concerned in the
administrative management of foreign labor as mentioned above. However, so far there
are still a number of ministries involved have not yet implemented guidelines such as
the Ministry of Health has can not form and the instructions authorized certification for
foreign labor.
Regulation on the rights of foreign laborers working in Vietnam has been
improved by a more positive direction, but it is still undeniable manifestation of
discrimination. For example, the right of social insurance is not to joining trade unions
and representatives to get enjoy full labor rights ... as same as domestic labor.
Besides, there are also no regulations on hiring foreign labor through required to
public employment services organization and regulation of the list of jobs recruiting
foreign labor.
5.2. CONCLUSIONS AND RECOMMENDATIONS
Vietnam should enact law on foreign labor.
- Regulations recruiment foreign labor recruitment continuously under the
direction of hiring foreign labors is only have professional qualified, professional skills
workers and experience in some sector a number of occupations that domestic workers
are not qualified.
- Continuing to put the draft law on foreign workers have reasonable regulations
on administration of foreign labor is applied.

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- To amend and supplement the regulations unreasonable and lacking in setting
up of the Act on foreign labor, such as:
+ Law shall regulate the Internet is a public media popularization of the

recruitment notice. This provision helps both employers and employees save money and
time for recruitment.
In future research it is needed to study, regulations towards empowering State
agencies of Vietnam authorized to inspect testing and certificate of technical
qualifications of foreign workers and to verify the accuracy of document required in the
application issued page by foreign countries.
The Ministry of Health should quickly issue regulations guiding templates,
content and agencies authorized health certificate for foreign laborers. Ministry of
Foreign Affairs manual procedure legalized the papers and documents necessary to use
foreign labor legally in the territory of Vietnam.
It should be additional regulations and improve on enssuring for the rights of
foreign labor during using. Specifically, it provides that foreign labors are subject to
apply social insurance applies. Besides it is also necessary to continue studying the
possibility of allowing foreign laborers to join Vietnam trade union in order to fully
implement freedom right to join trade union rights of workers and ensure protection of
equal treatment between domestic labor and foreign labor working in Vietnam.
It is need additional regulations to define terms used foreign labor when labor
Vietnam workers can not meet qualification. It can be applied the conditions it is
specified in the direction of law that before hiring foreign labor enterprises, agencies,
organizations and Vietnam is requested recruitment Vietnam on the job which is
looking for foreign labor through public employment service center to do the work. In
any case, the employment service center do not meet the needs of enterprises then, the
organization has the right to hire foreign workers.
It is additional procedures to notify to recruitment by a written confirmation of
employment service centers. This is confirmation in the basis of demonstrate enterprise
through find and providing domestic labor before hiring foreign labor. Regulations on
the way to overcoming the formal notification procedures recruit foreign labor.
Additional regulations prohibit foreign labors do some work and some areas that
prohibit the use of foreign labor. It should propose official forms of employment
contract for foreign labors and public information on the labor market.

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Publications related to the disertation

1. The new provisions of the Labor code in 2012 on collective labor agreements.
Journal of Labor and Unions, No. 521, page 4.
2. Overview law on foreign labor to work in Vietnam. Presentation at
conference of China and South Korea Labor in Vietnam by University of Labor and
Social affair, in December 2012.
3. Legislative practice and recommendations on the management of foreign
laborers working for enterprises and organizations in Vietnam. 3rd Topic – Title "Some
solutions to improve the efficiency of management Korean and Chinese laborers
working in Vietnam," the Ministry of Labor - Invalids and Social Affairs, Vietnam.
4. Labor Law Manual and Question and Answer book on employment policy.
Labor - Social Publisher, Hanoi 2012.

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