~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 1998]
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Vietnam to tighten grip on jobs at foreign firms

HANOI - Vietnam intends to force foreign firms operating in the country to hire local workers through state-run labour bureaux, a move called unworkable by international lawyers on Friday.
With little fanfare the government recently issued a decree stating that from January 1 the responsibility of supplying labour to foreign-invested firms would rest with state-run Employment Service Organisations.
An official at the Ministry of Labour, War Invalids and Social Affairs said foreign firms could recruit privately only if the Employment Service Organisations failed to offer suitably qualified staff.
He said the measure was intended to tighten state management over Vietnamese nationals working in foreign companies.
Hanoi has already said it would put restrictions on public servants and their spouses joining foreign firms if they had worked closely with state secrets, a murky area that encompasses anything from military activities to banking.
Foreign media, diplomatic missions and non-governmental organisations also face restrictions on hiring local staff.
``At the moment, authorities have no information on how many people work in foreign offices and they need this to keep a balance in the labour market,'' the ministry official said.
``If the centres fail to meet the requirement of the foreign firms they can advertise but anyone they want to recruit will still have to register with the labour centre.
``At the moment we don't know what happens with those who work at foreign offices, we know nothing of their salary, their social insurance ... We want to protect their interests,'' the official added.
The decree states that foreign firms seeking local staff have to inform Employment Service Organisations in the relevant city or province of their needs along with job descriptions and what rights future employees would have. Companies would also need to register local staff employed before January 1.
Vietnamese wanting to work for foreign firms would need to register with the labour bureau and present various details including a resume approved by local police.
The decree gives no details on what fees would be involved for the labour service.
But foreign lawyers and recruiters called the measure a negative step that would make life more difficult for investors already burdened by numerous administrative requirements and red tape in the communist-ruled country.
``This is just another tax, it is unworkable and a retrograde step as far as foreign investors are concerned. It is yet another administrative requirement and another fee that will have to be paid,'' a lawyer told Reuters.
``It appears the authorities are trying to create a market for state labour bureaux as well as exerting further control on employment of staff in foreign-invested enterprises.''
He said the new decree could be interpreted as going against the spirit of the 1996 Law on Foreign Investment, which implies foreign firms can recruit directly.
One foreign businessman involved in recruitment said the decree would likely remove the confidentiality required in high-level job placement.
``The issue of finding quality staff in Vietnam is critical but top people will not apply through these labour bureaux. You will find good staff will just stay where they are,'' he said.

Reuters - November 06, 1998.