Labor Regulations Update in November 2024

OFFICIAL LETTER NO. 2220/TTCP-KHTH ON THE ORIENTATION OF INSPECTION PROGRAM IN 2025

On 23rd October 2024, the Government Inspectorate issued the Official Letter No. 2220/TTCP-KHTH on the orientation of Inspection Program in 2025.

Talentnet would like to summarize some key points in the specialized inspection related to the fields of taxation and labor as follows:

General Department of Taxation

Prioritize audits and inspections of Enterprises in industries and sectors with substantial tax revenue potential or risks, including:

• Oil and gas; petroleum; electricity; telecommunications; banking; insurance; securities; financial leasing; pharmaceuticals; real estate; construction; precious metals processing; entertainment; advertising; e-commerce…;
• Large-scale Enterprises that have not been audited or inspected for an extended period;
• Enterprises engaging in capital transfers, brand transfers, and project transfers;
• Enterprises issuing securities, paying stock dividends, and issuing bonus shares;
• Enterprises with related party transactions, transfer pricing, or with many years of losses or profits significantly lower than other Enterprises in the same industry;
• Enterprises with elevated invoice risk;
• Enterprises with signs of fraud or tax refund risks;
• Enterprises enjoying tax exemptions;
• Enterprises with tax exemptions under double taxation avoidance agreements;
• Enterprises with suspicious transaction information as reported by Banking Supervisory Authorities or Customs Authorities.

Ministry of Labor, Invalids and Social Affairs

• Inspection of compliance with labor law regulations, with a focus on inspecting the implementation of regimes and policies for employees and managers of Enterprises with over 50% state capital; large-scale Enterprises operating in multiple provinces and cities with a large workforce, Enterprises in industrial parks, export processing zones, high-tech zones, and economic zones with a large workforce, where complex labor relations issues are likely to arise. Inspection of the implementation of state management responsibilities for labor of the People’s Committees of provinces and centrally run cities; inspection of compliance with regulations on labor leasing in Enterprises currently engaged in labor leasing.
• Inspection of compliance with occupational safety and health regulations in Units and Enterprises operating in sectors with high risks of occupational accidents, occupational diseases, using many machines, equipment, and materials with strict occupational safety requirements, and employing a large number of employees engaged in heavy, hazardous, and particularly hazardous work. Inspection and verification of compliance with regulations on occupational safety and health, quality of group 2 goods, and conformity certification. Inspection of the implementation of occupational safety and hygiene inspection and training activities at Enterprises granted inspection and training certificates.
• Inspection of the implementation of the state management function of the Department of Labor, Invalids and Social Affairs regarding unemployment insurance, management of foreign workers working in Vietnam; support for vocational training for unemployed workers at vocational training institutions. Coordination with the Vietnam Social Insurance to inspect compliance with regulations on social insurance, unemployment insurance, health insurance, and occupational accident and occupational disease insurance at provincial and district social insurance agencies; compliance with regulations on foreign workers working in Vietnam, social insurance, unemployment insurance, health insurance, and occupational accident and occupational disease insurance in Enterprises, focusing on Enterprises using a large number of foreign workers, Enterprises that are late or evade social insurance payments.

Vietnam Social Insurance

• Inspecting Enterprises that have registered for business, declared personal income tax but have not registered for social insurance participation.
• Inspecting Enterprises that have a low salary as the basis for social insurance contribution but have a high declared tax income.
• Inspecting Enterprises that are late in paying social insurance, unemployment insurance, and health insurance for 3 months or more.
• Specialized inspection of Enterprises operating under a corporate group model, an ecosystem consisting of a parent company and many subsidiaries.

Ministry of Public Security

• Inspection of compliance with regulations on the entry, exit, and residence of foreigners in Vietnam; exit and entry of Vietnamese citizens; counterterrorism; protection of important national security works and targets.

OFFICIAL LETTER NO. 28950/SLDTBXH-VL-ATLD REGARDING REPORTING ON THE USE OF FOREIGN WORKERS IN 2024

On 18th November 2024, the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City issued the Official Letter No. 28950/SLDTBXH-VL-ATLD regarding the implementation of reporting on the use of foreign workers in 2024.

According to the instruction in this Official Letter, the Department of Labor, Invalids and Social Affairs of Ho Chi Minh City requests all Enterprises to submit a report on the use of foreign workers in 2024 before 5th January 2025.

Additionally, according to current regulations on labor reporting, Enterprises are required to submit a report on annual labor changes before 5th December 2024.

Talentnet strongly recommends that our clients actively update and complete the aforementioned reports by the specified deadlines to ensure full compliance with relevant regulations.