Control of foreign workers: A TOUGH JOB

 Regulatory control has failed to keep pace with the influx of foreign workers in Vietnam.

 

 Ms. Lavender, a US citizen working in Vietnam for two years, is employed by an international marketing firm. “I get annual leave, sick days, bonuses, medical benefits, and much more,” she said. “I work five days a week and have normal working hours. And I feel I’m treated very well, on par with how I would be treated in my home country.”

Good remuneration packages are common for foreigners working in Vietnam, which explains why many, from both developed and developing countries, are exploring opportunities in Vietnam. 

 

Greater numbers

Foreign workers have been in Vietnam for a number of years already. Many Eastern European experts came to Vietnam under technical cooperation programs until the early 1990s, when the Soviet Bloc then collapsed. Only when Vietnam opened up its economy and started seeing waves of investment in the mid 1990s did foreign workers start arriving again in large numbers. According to the Ministry of Labor, War Invalids and Social Affairs (MoLISA), in 2009 there were some 75,000 foreign workers in Vietnam. They must have their employer register them with MoLISA and obtain a work permit from the Ministry and then a visa. Many foreigners, though, work on a tourist visa and receive no assistance from their employer as regards registration and applying for a work permit. While most head to a neighboring country every three months to obtain a new visa, there are some, primarily in manual employment, who choose to stay here illegally. Ho Chi Minh City currently hosts the most foreign workers, at about 50,000, according to MoLISA.

Unofficial reports suggest that the State budget has missed out on billions of dong by not taxing unregistered foreign workers, who usually receive higher incomes than local people. Some employers “tax” their foreign workers and then keep the money for themselves rather than forwarding it to the Government. This is a very common occurrence at English language centers, where many foreign teachers claim they pay income tax even though their employers have refused to register them.

 

Lack of control

There are no laws controlling foreigners working in Vietnam, only regulations from MoLISA. Regulation No 34/2008/ND-CP, the main legal document, has proven to be ineffective due to wrongly identifying the subjects (aiming to control workers protected by diplomatic regulations and WTO commitments), and a lack of strong executive agencies being charged with implementation.

Moreover, the responsibilities of related State agencies, such as MoLISA, the Department of Immigration under the Ministry of Public Security, and the Ministry of Foreign Affairs are not divided clearly, which make the situation become even more complex. As a result, no one has full responsibility to guarantee that all regulations are implemented correctly. Despite the fact that more than half of all foreign workers are working illegally in Vietnam, very few have been penalized.

In addition, many foreigners complain that the application process for a work permit is extremely lengthy and grueling, so many employers are unwilling to help their employees to complete the paperwork.

John Heitinga is an English teacher at two universities in Vietnam. He has been in Vietnam for two years and also worked for many English language centers. He had a one-year work permit from his old employer, but now doesn’t have one. The MoLISA regulations require his employers to submit an application but they have not done so, saying it was difficult and unnecessary. “I have all the necessary documents and urged my universities to submit them to the authorities, but they haven’t done it,” he said. “That makes me an illegal worker and I could be deported at anytime.” 

His situation is quite common among foreigners working in Vietnam. Because of the little or no control over companies employing foreign workers, many employers have chosen not to obtain work permits for their employees.

 

Law needed

Foreign workers, especially highly-skilled ones, play an important role in Vietnam’s economy. They not only help to introduce new technologies and skills but also foster competitiveness in the human resources market, raising labor quality. But if labor management does not improve then such advantages will not last. 

Vietnam’s immigration policy needs a full legal framework. At the National Assembly gathering last April, Minister of Labor Nguyen Thi Kim Ngan suggested that a new law on foreign workers be issued as soon as possible. “Relevant ministries and State agencies should work together to control foreign workers,” she said. “A law that sets out their responsibilities is necessary for this to happen.” 

While this is still a long-term wish, many foreign workers and their employers insist that the work permit application process be improved. “The government should reduce the unnecessary stages and the documents needed for those who want to work here legally,” said Ms. Lavender. Mr. Heitinga, meanwhile, believes that Vietnam could introduce something similar to the Australian immigration laws, which regulate that foreign workers can obtain a work permit without the involvement of their employer.