Vietnam to Ease Regulations for Job Service Firms, Streamlining Procedures for Convenience

Vietnam's Ministry of Home Affairs has proposed amendments and supplements to regulations concerning job service companies, aiming to simplify administrative procedures and enhance transparency. This initiative is designed to reduce burdens on businesses and revitalize the broader job market. Currently, job service operations are no longer classified as conditional investment activities. Effective July 1, 2026, companies in this sector will be exempt from meeting requirements related to facilities, personnel, and security deposits, and will no longer need to apply for business licenses. This deregulation is expected to lower market entry barriers and reduce operational costs. However, these regulatory easing measures must be implemented concurrently with the refinement of state management mechanisms for the job service sector. Given its direct impact on the rights and interests of both workers and employers, and the functioning of the labor market, a robust management system ensuring transparent information disclosure, timely detection and prevention of illegal activities, and protection of stakeholders' rights is crucial. Furthermore, the existing decree (Decree No. 352/2025/ND-CP) is set to expire at the end of February 2027. A failure to amend it promptly could lead to a legal vacuum. Consequently, the Ministry of Home Affairs has drafted amendments to maintain legal consistency, ensure the continuity of state management, and shift the management approach from primarily relying on conditions and licenses to one focused on information notification, disclosure, data management, inspections, and post-audits. The proposed amendments highlight several key points: Firstly, to align with the Investment Law and related decrees, four provisions from the current decree will be removed: conditions for job service operations, provisions related to business licenses, procedures for issuing, renewing, and revoking licenses, and security deposit requirements. Secondly, three provisions from the current decree will be revised to ensure consistency with relevant laws and practical realities. Specifically, obligations related to business licenses will be abolished for companies. The form of business commencement notification will transition from written submissions to online notifications via job exchange platforms. The reporting system will be simplified and diversified, promoting IT application and clarifying the provincial Departments of Home Affairs as the competent authorities for job services. Additionally, three new provisions will be introduced: Companies will be required to notify the National Job Exchange of their cessation of job service operations, enabling state agencies to promptly update business statuses. Information on registered job seekers and employers posting vacancies will be connected and shared with the National Job Exchange to enhance data management. Provisions for withdrawing existing security deposits will be simplified, aligning with the abolition of the security deposit requirement. These revisions will free job service companies from cumbersome administrative procedures, allowing them to operate more swiftly and flexibly, while retaining obligations for business commencement and cessation notifications to relevant authorities for state management purposes. Source: Nhan Dan