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IMPACT – MEDIUM
What is the change? The Department of Labor, Invalids and Social Affairs of Ho Chi Minh City has released additional information on guidance provided last month, including announcement of a new rule that an assignment letter justifying an intracompany transfer must be issued by an owner or shareholder of the Vietnamese host company.
What does the change mean? The new information provides additional information and clarification on intracompany transferees, foreign labor reporting requirements and the penalties for failing to return old work permits.
Background: Officials provided additional information at a recent training session after issuing Circular 40 in December. The circular provided guidance on how to implement Decree 11, which introduced new rules for foreign employees, including intracompany transfers.
Key points:
BAL Analysis: The new information on the ICT procedures are of particular note, as companies must be sure that the assignment letters are issued by the appropriate host company owner or shareholder. Contact BAL with questions about the new requirements to ensure that applications are not unnecessarily delayed.
This alert has been provided by the BAL Global Practice group and our network provider located in Vietnam. For additional information, please contact your BAL attorney.
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