CIRCULAR 35 STIPULATES THE WORK PERMIT EXEMPTION FOR FOREIGN EMPLOYEES INTERNALLY TRANSFERED BY ENTERPRISES OPERATING WITHIN ELEVEN SERVICE SECTORS VIETNAM COMMITS TO WTO
In order to provide specific and detailed guidance on cases of work permit exemption applicable to foreign employees transferred by a foreign enterprise to work in its commercial presence in Vietnam within 11 service sectors in Vietnam’s World Trade Organization (“WTO”) commitments, that provides guidance set out in Decree No. 11/2016/NĐ-CP dated 3 February 2016 (”Decree 11”), the Ministry of Labor – Invalids and Social Affairs issued Circular No. 35/2016/TT-BLĐTBXH dated 28 December 2016 (“Circular 35”). In accordance with Circular 35, in the case where a foreign enterprise has its commercial presence in Vietnam within 11 service sectors (including Trade, Information and Communication, Construction, Distribution, Education, Environment, Finance, Health, Tourism, Culture & Entertainment, Transportation), and foreign employees who have been working for the foreign enterprises with the term of at least 12 months, being internally transferred to the foreign enterprise’s commercial presence in Vietnam, are subject to work permit exemption.
In accordance with Article 2 of Circular 35, a commercial presence of a foreign enterprise in Vietnam includes:
- Foreign invested enterprises;
- Representative offices, Branches of foreign enterprises in Vietnam;
- Operating offices of foreign investors in the business cooperation contract.
In addition, Clients should please note that under Circular 35 there is a different guidance on the nature of 11 service sectors respectively applied to positions of an administrator, managing director, expert or technician. Accordingly, Appendix I of Circular 35 is categorized as administrator, managing director, expert and Appendix II is for technicians. Other matters in relation to evidence certifying a work permit exemption for foreign employees for cases above, and evidence certifying internal transfer of foreign employees, please refer to Circular 35. Circular 35 takes effect as of 10 February 2017.
Download full text document at: Circula-35-2016
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