Employment service: Mandatory conditions for Foreign investors in Vietnam

1. Scope of Employment Service Activities: 

According to Article 28 of Decree No. 23/2021/ND-CP, enterprises engaged in employment services in Vietnam may conduct the following main groups of activities: 

(1) Consulting activities, including: 

a) Providing career guidance and counseling on national occupational skill standards to help employees select suitable occupations, training programs, professional development, and self-improvement plans in line with their abilities and aspirations; 

b) Offering job counseling services to employees to help them choose appropriate job positions that match their abilities and expectations; advising on job application skills, self-employment opportunities, and job search in both domestic and international markets; 

c) Advising employers on recruitment, utilization, and management of labor; on job management and development; and on human resource development strategies; 

d) Providing counseling on labor and employment policies for both employees and employers. 

(2) Introducing job opportunities to employees. 

(3) Supplying and recruiting labor at the request of employers, including: 

a) Organizing competitive recruitment examinations to select qualified candidates who meet employers’ requirements; 

b) Supplying labor based on employers’ specific demands; 

c) Referring laborers to enterprises licensed to send Vietnamese workers abroad under labor contracts, to overseas investors, or to public service units under ministries, ministerial-level agencies, or government agencies tasked with sending Vietnamese workers abroad under contract in accordance with the Law on Vietnamese Workers Working Abroad under Contract. 

(4) Collecting and providing labor market information. 

(5) Analyzing and forecasting labor market trends. 

(6) Providing training on job interview skills, job search skills, and other workplace skills; offering vocational education in accordance with the law. 

2. Market Access Restrictions for Foreign Investors in Employment Services: 

Under current regulations, employment services are not among the business sectors that Vietnam has committed to opening to foreign investors in its Schedule of Commitments upon accession to the World Trade Organization (WTO), nor are they listed in Decree No. 31/2021/ND-CP guiding the Law on Investment. This means that, in principle, the sector is not automatically open to foreign investment and remains subject to specific review and approval by competent authorities on a case-by-case basis. 

Specifically, upon receiving an application for the issuance of an Investment Registration Certificate from a foreign investor whose proposed project involves employment service activities, the Department of Finance (formerly the Department of Planning and Investment) will coordinate with relevant authorities to assess the feasibility, suitability, and the investor’s capability to meet the statutory conditions applicable to this conditional business line. In addition, factors such as the investor’s financial capacity, operational experience, understanding of the Vietnamese labor market, as well as the adequacy of its facilities and human resources, will be key considerations for the competent authorities before making a licensing decision. 

In practice, based on our advisory experience, several wholly foreign-owned enterprises have been granted licenses by Vietnamese authorities to operate in the employment service sector (notable examples include Olik Vietnam, Newbridge & Partners Vietnam, Jobmatch Singapore, among others). This indicates that although employment services are not classified as an industry with unrestricted market access, the sector is not entirely “closed” to foreign investors—particularly for those who have thoroughly prepared their legal documentation, committed to fully meeting statutory requirements, and demonstrated the capability to implement the project in accordance with the expectations of Vietnamese government agency. 

Developing a feasible business plan, providing clear explanations regarding physical facilities, qualified personnel, and operational capabilities are key factors that will enhance the likelihood of receiving approval to conduct employment service activities in Vietnam. 

3. Conditions Required for Obtaining an Employment Service License 

According to Article 14 of Decree No. 23/2021/ND-CP, an enterprise wishing to operate in employment services must meet the following mandatory conditions before the Department of Home Affairs (formerly the Department of Labor, Invalids and Social Affairs) will consider issuing an Employment Service License: 

(1) Business location: 

• The enterprise must have a head office or branch dedicated to employment service activities; 
• The head office location must be legally owned by the enterprise or leased under a stable and lawful contract with a minimum term of 3 years (36 months) from the date of submitting the application. 

Note: In practice, in addition to these statutory requirements, the licensing authority often requires supporting documents to prove the legality of the premises, including:  

• Certificate of land use rights, house ownership, and other assets attached to the land where the office is located;  
• Valid construction permit for the building (in cases of new construction or renovation);  
• Where the lessor’s legal representative is a foreigner, the individual must possess a valid work permit or confirmation of exemption from work permit requirements under Vietnamese labor law.  

(2) Security Deposit: The enterprise must place a deposit of VND 300,000,000 at a commercial bank. 

(3) The legal representative of an enterprise performing service activities must ensure the following conditions: 

• Must be an executive as defined under the Law on Enterprises; 
• Must not fall into any of the following categories: under criminal investigation, detention, or imprisonment; serving administrative penalties at compulsory detoxification or education facilities; evading residence; legally incapacitated or restricted; facing cognitive or behavioral difficulties; or prohibited by court judgment from holding certain positions or practicing specific occupations related to employment services; 
• Must possess a university degree or higher or have at least 2 years (24 months) of direct professional experience or management in employment services or labor supply within the 5 years prior to applying for the license. 

Note: If the enterprise has only one legal representative who is a foreigner, this individual must hold a valid work permit or a valid confirmation of exemption under Vietnamese law. 

4. Application Dossier for Employment Service License: 

To apply for an Employment Service License, an enterprise must prepare and submit the following documents to the Department of Home Affairs where its headquarters is located: 

(1) Application for employment service license following Form No. 02, Appendix II of Decree No. 23/2021/ND-CP; 

(2) A certified true copy or a copy (with the original presented for comparison) of the Certificate of ownership, or the lease contract for the premises that satisfies the licensing requirements as mentioned above. In addition, the enterprise must also prepare copies of other supporting documents as required by the Department of Home Affairs, including: 

• Certificate of land use rights, house ownership, and other assets attached to the land where the office is located;  
• Valid construction permit for the building (in cases of new construction or renovation);  
• Where the lessor’s legal representative is a foreigner, the individual must possess a valid work permit or confirmation of exemption from work permit requirements under Vietnamese labor law.  

(3) Certificate of the security deposit as per Form No. 03, Appendix II of Decree No. 23/2021/ND-CP; 

(4) Curriculum vitae of the enterprise’s legal representative using Form No. 04, Appendix II of Decree No. 23/2021/ND-CP. Please note that the legal representative of the enterprise performing employment service activities must initial each page in addition to signing on the last page. 

(5) A judicial record certificate No. 1 as prescribed by Vietnamese law on judicial records of the enterprise’s legal representative. In case the legal representative is a foreigner who is not subject to the issuance of judicial record certificate No. 1, it may be replaced by an equivalent certificate or document issued by a competent foreign authority confirming that the individual is not currently serving any criminal sentence, has not had any unexpunged criminal convictions, and is not under criminal investigation. Please note that this document must be issued no more than 06 months prior to the date of application submission. Any foreign-language document must be translated into Vietnamese, notarized, and consularly legalized in accordance with Vietnamese law. 

(6) A certified true copy or a copy (with the original presented for comparison) of the professional qualification that satisfies the licensing requirements as mentioned above, or one of the documents proving the legal representative’s direct professional experience or managerial involvement in employment services or labor supply, as follows: 

a) A certified true copy or a copy (with the original presented for comparison) of the labor contract, employment contract, or decision on recruitment, appointment, or assignment of the enterprise’s legal representative; 

b) A certified true copy or a copy (with the original presented for comparison) of the appointment decision (for those working under the appointment regime) or the document recognizing election results (for those working under the election regime) of the enterprise’s legal representative, or a copy of the enterprise registration certificate (in case the individual is the legal representative of an employment service enterprise). 

Note: In case these documents are issued by foreign authorities, they must be translated into Vietnamese, notarized, and consular legalized in accordance with Vietnamese law. 

After submitting the complete dossier online, the Department of Home Affairs will conduct an on-site inspection at the company’s headquarters. If the inspection meets requirements, the Department of Home Affairs will issue a receipt with the expected date for the official Employment Service License issuance. 

The Employment Service License is valid for a maximum of 60 months and may be renewed multiple times, each for up to 60 months. If reissued, the license term will not exceed the remaining validity of the previous license. 

Conclusion, employment services are a conditional business line in Vietnam, offering great potential for foreign investors while imposing strict legal requirements regarding infrastructure, finance, and human resources. Compliance with these conditions not only ensures lawful market entry but also lays the foundation for sustainable and effective operations. 

Although Vietnam has not fully committed to opening this sector to foreign investors under international agreements, in practice, licensing opportunities remain viable for well-prepared investors with feasible business plans. To ensure a smooth licensing process, mitigate legal risks, and save time, foreign investors are strongly advised to consult with experienced legal advisors from the outset of their investment project.  

Related posts

1. Legal notable relating to the establishment of a foreign-invested employment services company in Vietnam
2. Conditions for foreign investors to operate in employment services in Vietnam

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