Personnel requirements for Korean-invested enterprises 

For Korean-invested enterprises in Vietnam, departments such as representatives, experts, and technical workers must also comply with Vietnamese law. So, what are the personnel requirements for Korean-invested enterprises in Vietnam? Please find out more in this article:

Conditions for the legal representative of Korean-invested enterprises

According to Clause 1, Article 12 of LAW ON ENTERPRISES 2020, the legal representative of a Korean-invested enterprise in Vietnam is an individual who represents the enterprise, exercises the rights and obligations arising from the enterprise’s transactions and represents the enterprise as a plaintiff, defendant, or interested party in the arbitration, court, and other rights and obligations as prescribed by law.

As stipulated in Clause 3, Article 12 of LAW ON ENTERPRISES 2020, a limited liability company or a joint stock company with Korean investment in Vietnam may have one or more legal representatives. However, the company must appoint at least one legal representative who is a Vietnamese resident. If there is only one legal representative, they must be a Vietnamese resident and grant a written power of attorney to another person to exercise their duties when absent from Vietnam. Nevertheless, the legal representative remains liable for the actions of their authorized representative.

Conditions for the use of labor by Korean-invested enterprises

Korean-invested enterprises in Vietnam can hire both foreign and Vietnamese workers. However, if using foreign workers, the company must go through the procedures of applying for visas, approval for the use of foreign workers, work permits, and temporary residence cards, as prescribed by Vietnamese law.

For the recruitment and employment of Vietnamese workers.

Labor recruitment is generally regulated in Article 11 of the 2019 Labor Code. Accordingly, the employer has the right to directly or through a job placement service organization, a labor leasing enterprise to recruit labor according to the employer’s needs; Employees do not have to pay any fees for recruitment.

According to Clause 2, Article 13 of the 2019 Labor Code, before accepting a worker, the employer must enter into a labor contract with the worker. The authority to enter into a labor contract is stipulated in Article 18 of the 2018 Labor Code, accordingly, the labor authority is defined as follows:

– Employees directly enter into labor contracts (Except for cases of entering into labor contracts for seasonal work, certain work with a term of less than 12 months, a group of employees aged 18 and over can authorize one employee in the group to enter into a labor contract; in this case, the labor contract must be made in writing and have the same effect as if it were made with each employee. The labor contract in this case, signed by the authorized person, must be accompanied by a list clearly stating the full name, date of birth, gender, place of residence, and signature of each employee).

– The person who enters into the labor contract on behalf of the employer is a person who falls into one of the following cases:

• The legal representative of the enterprise or the person authorized by law;
• The head of an agency or organization having legal personality as prescribed by law or the person authorized by law;
• The representative of a household, cooperative, or other organization without legal personality or the person authorized by law;
• Individuals directly using labor;

– The person who enters into the labor contract on behalf of the employee is a person who falls into one of the following cases:

• Employees aged 18 and over;
• Employees aged from 15 to under 18 with the written consent of their legal representative;
• Persons under the age of 15 and their legal representative;
• Employees authorized by other employees in the group to enter into a labor contract;

– The person authorized to enter into a labor contract shall not re-authorize another person to enter into a labor contract.

Regarding the recruitment and employment of foreign workers.

Conditions for recruiting and using foreign workers.

The conditions for recruiting and using foreign workers in Vietnam are stipulated in Article 152 of the 2019 Labor Code. Accordingly, Korean-invested enterprises wishing to recruit and use foreign workers must meet the following conditions:

• Enterprises and contractors are only allowed to recruit foreign workers for managerial, executive, expert, and technical positions Vietnamese workers cannot meet the requirements of production and business needs.
• Before recruiting foreign workers to work in Vietnam, enterprises and contractors must explain their labor needs and obtain written approval from the competent state agency.
• Before recruiting and using foreign workers in Vietnam, the contractor must specifically declare the job positions, professional qualifications, technical skills, work experience, and the duration of employment for which foreign workers are required to execute the contract package and obtain written approval from the competent state agency.

Conditions for foreign workers working in Vietnam.

A foreign worker in Vietnam is a person of foreign nationality who meets the conditions stipulated in Clause 1, Article 151 of the 2019 Labor Code, including:

• Be at least 18 years of age and have full civil capacity.
• Possess the required professional qualifications, technical skills, expertise, and work experience; and be in good health as prescribed by the Minister of Health.
• Not be a person who is currently serving a criminal sentence or has not had a criminal record expunged, or who is currently being prosecuted for a criminal offense under foreign law or Vietnamese law.
• Must hold a work permit issued by a competent Vietnamese state agency, except as provided for in Article 154 of the 2019 Labor Code.

The duration of an employment contract for a foreign worker in Vietnam must not exceed the validity period of the work permit. When employing a foreign worker in Vietnam, both parties may agree to enter into multiple fixed-term employment contracts.

Foreign workers working in Vietnam must comply with Vietnamese labor law and are protected by Vietnamese law, except in cases where international treaties to which the Socialist Republic of Vietnam is a party have different provisions.

The requirements and conditions for personnel in enterprises with Korean capital in Vietnam are above. If you have any questions regarding the establishment of a company with Korean capital in Vietnam, please contact Siglaw Firm for detailed advice.

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
• vphcm@siglaw.com.vn

Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.

Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.

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