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.
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