Labor Outsourcing in Vietnam: 5 Key Reforms from Decree 29

Vietnam recently issued new updates on labor outsourcing regulations under Decree 29/2019/ND-CP (Decree 29). The new regulation came into effect on May 5 and details guidelines on Clause 3 of Article 54 of the Labor Code regarding outsourcing services, deposit payment and the list of permissible outsourced jobs.

We look at five main highlights of the decree and what changes foreign businesses operating in Vietnam should be aware of:

  1. Labor license period

  2. Labor outsourcing period

  3. Expanded list of jobs

  4. Labor outsourcing licensing conditions eased

  5. Better protection for employees

This is an exerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.