I. LEGAL BASIS

• The Labor Code No. 45/2019/QH14 dated 20 November 2019 (the “2019 Labor Code”);

• Decree No. 145/2020/ND-CP detailing and guiding the implementation of a number of articles of the Labor Code regarding working conditions and labor relations (“Decree 145/2020/ND-CP”).

II. WHAT IS LABOR SUPPLY?

Under Vietnamese law, “labor supply” is legally referred to as labor outsourcing.

Pursuant to Article 52 of the 2019 Labor Code, labor outsourcing (also referred to as labor supply) means an arrangement whereby an employee enters into an employment contract with an employer that is a licensed labor outsourcing enterprise, and is subsequently assigned to work for and placed under the management and direction of another employer, while maintaining the employment relationship with the employer with whom the employee originally entered into the employment contract.

III. CONDITIONS FOR CONDUCTING LABOR SUPPLY (LABOR OUTSOURCING) ACTIVITIES

1. Conditions regarding business lines registered by the enterprise

• The enterprise must register an appropriate business line in accordance with the Vietnam Standard Industrial Classification System, specifically business lines under Code 78 – Employment Services and Labor Supply Activities, pursuant to Decision No. 36/2025/QD-TTg promulgating the Vietnam Standard Industrial Classification System.

• The enterprise must obtain a License for Labor Outsourcing Activities in accordance with Clause 2, Article 52 of the 2019 Labor Code.

2. Conditions regarding statutory capital, deposit and managerial personnel

Pursuant to Article 21 of Decree 145/2020/ND-CP, the applicable conditions include:

• Statutory capital/deposit requirement: The enterprise must make a VND 2,000,000,000 (two billion Vietnamese dong) deposit as security for its labor outsourcing activities.
• Conditions applicable to the legal representative of the enterprise: The legal representative must:

–  Be a manager of the enterprise as prescribed by the Law on Enterprises;

–  Have no criminal record;

–  Have at least three (03) years (36 months) of direct professional or managerial experience in labor outsourcing or labor supply activities during the five (05) consecutive years immediately preceding the date of application for the license.

3. Cases in which a Labor Outsourcing License will not be granted

Pursuant to Clause 5, Article 25 of Decree 145/2020/ND-CP, a Labor Outsourcing License shall not be granted in the following cases:

• The enterprise fails to satisfy the conditions prescribed in Article 21 of Decree 145/2020/ND-CP;

• The enterprise has used a counterfeit license to conduct labor outsourcing activities;

• The legal representative of the enterprise was previously the legal representative of an enterprise whose Labor Outsourcing License was revoked for any of the reasons specified at Points d, dd and e, Clause 1, Article 28 of Decree 145/2020/ND-CP within the five (05) consecutive years immediately preceding the date of application for the license;

• The legal representative of the enterprise was previously the legal representative of an enterprise that used a counterfeit license.

IV. DOCUMENTS AND PROCEDURES FOR APPLYING FOR A LABOR OUTSOURCING LICENSE

Pursuant to Articles 24 and 25 of Decree 145/2020/ND-CP, the procedures for applying for a Labor Outsourcing License are as follows:

Step 1: Preparation of the application dossier

The application dossier shall include:

• An application for the Labor Outsourcing License made by the enterprise, using Form No. 05/PLIII of Appendix III to Decree 145/2020/ND-CP;

• A personal curriculum vitae of the legal representative of the enterprise, using Form No. 07/PLIII of Appendix III to Decree 145/2020/ND-CP;

• Criminal Record Certificate No. 1 of the legal representative, issued in accordance with the law on judicial records and dated no more than six (06) months prior to the date of application. In the case of a foreign legal representative, the certificate must be duly translated, notarized and consularly legalized in accordance with Vietnamese law;

• Documents evidencing the period of direct professional or managerial experience in labor outsourcing or labor supply activities of the legal representative;

• A Certificate of Deposit for Labor Outsourcing Activities, using Form No. 01/PLIII of Appendix III to Decree 145/2020/ND-CP.

Step 2: Submission of the application dossier

Competent receiving authority: The Department of Home Affairs of the province/city where the enterprise’s head office is located.

Step 3: Review of the application dossier and submission to the Chairman of the Provincial People’s Committee

The competent authority shall review the application dossier and submit it to the Chairman of the relevant Provincial People’s Committee within twenty (20) working days from the date of receipt of a complete and valid application dossier.

Step 4: Consideration and issuance of the Labor Outsourcing License

The Chairman of the Provincial People’s Committee shall consider and issue the Labor Outsourcing License to the enterprise within seven (07) working days from the date of receipt of the dossier submitted by the Department of Home Affairs.

The above sets out the principal legal provisions and procedures applicable to applying for a Labor Outsourcing License for the provision of seasonal labor services in Vietnam. Should you require further legal advice, detailed consultation, or assistance in accessing and implementing these services, please contact Lawyer Nguyen Duc Trong directly via hotline 0912.35.65.75, or submit your service request by email at lawyer@hongbanglawfirm.com.

We wish you and your family good health, happiness, and continued success.

Yours sincerely,