The conditions for establishing a labor export company in 2023

The conditions for establishing a labor export company

Establishing a labor export company is a multi-step process because labor export is a conditional business.

Labor export is a solution to send Vietnamese workers abroad to meet the labor demand of the host country. This not only provides optimal options for labor resources for third countries but also expands opportunities to improve the economic life of individuals, families, and the entire community in the country.

Currently, the demand for labor supply and export is increasing, leading to the trend of establishing labor export companies in many provinces and localities nationwide.

However, establishing a labor export company is a multi-step and relatively complex process because labor export is a conditional business field. This sharing from the online company establishment hopes to provide businesses with enough information and experience about the conditions for establishing a labor export company in 2023.

Things to know before establishing a labor export company

According to Article 8 of the Law on Vietnamese laborers working abroad under contracts in 2020, the provision for the service of sending Vietnamese workers abroad for work is as follows:

The service of sending Vietnamese laborers abroad to work under contracts is a conditional business field. Enterprises engaging in this service must obtain a License for the service of sending Vietnamese laborers abroad for work under contracts, issued by the Minister of Labor, Invalids and Social Affairs.

Vietnamese enterprises engaging in the service of sending Vietnamese laborers abroad to work under contracts must comply with and maintain the regulations stipulated in Article 10 of this Law. They must also meet the specific standards and regulations in each profession, field, and specific job as prescribed by the Government.

Regarding the function, duties, and roles of establishing a labor export company, Article 9 of the Law on Vietnamese laborers working abroad under contracts in 2020 specifies:

Enterprises must sign and implement contracts and related agreements for sending Vietnamese laborers to work abroad under contracts. 

  • They must participate in seeking and developing the labor supply market abroad. They are directly involved in training, advising the process of sending Vietnamese laborers to work abroad under contracts. 
  • They need to prepare the labor force, select suitable workers, organize language and work skill training, and provide educational guidance for Vietnamese laborers working abroad. They must actively manage the labor force, protect the legitimate rights and interests of Vietnamese laborers working abroad. 
  • They must fully and accurately implement policies and benefits for Vietnamese laborers working abroad. They must facilitate the termination and settlement of contracts for Vietnamese laborers working abroad. 
  • They should support, introduce, and arrange jobs for laborers upon their return to the country.

What are the conditions for establishing a labor export company? 

Regarding the conditions for establishing a labor export company, Article 10 of the Law on Vietnamese Employees Working Abroad under Labor Contracts in 2020 specifies that a Vietnamese enterprise needs to meet the following criteria to be eligible to establish a labor export company:

  1. Have a minimum charter capital of 5 billion Vietnamese dong or more, with all owners, shareholders, and members being domestic investors as per the provisions of the Investment Law.
  2. Have participated in contributing to the fund as stipulated in Article 24 of the Law on Vietnamese Employees Working Abroad under Labor Contracts in 2020.
  3. Have a representative who is a Vietnamese citizen, has a university degree or higher, and has at least 5 years of experience in the field of sending Vietnamese employees to work abroad under labor contracts, or has general experience in employment services.
  4. The representative must not be under criminal prosecution or have a criminal record for offenses such as endangering national security, endangering human life and health, fraudulently appropriating property, abusing trust to fraudulently appropriate property, false advertising, deceiving customers, brokering or assisting others to engage in illegal entry or exit, assisting others to illegally stay abroad or leave the country, or coercing others to leave the country or stay abroad illegally.

Additionally, to establish a labor export company, the enterprise must have an adequate number of personnel to implement and ensure compliance with the provisions of Article 9 of this Law. It should also have sufficient physical facilities or rented facilities that meet the standards for providing orientation and education for Vietnamese employees working abroad under labor contracts.

The conditions for establishing a labor export company in 2023

Deposit when establishing a labor export company

The specific rules about the deposit when setting up a labor export company are outlined in Article 24 of the 2020 Law on Sending Vietnamese Workers to Work Abroad under Labor Contracts as follows.

The deposit of a company providing services to send Vietnamese workers to work abroad under labor contracts will be placed in a bank and can only be used if the enterprise fails to comply, or only partially complies, with the regulations on providing services to send Vietnamese workers to work abroad under labor contracts as stipulated by the competent authorities.

Within a maximum period of 30 days from the time the deposit is used, the enterprise is responsible for fully refunding the deposit used in accordance with the regulations.

Point b, clause 3 of this Law also clearly states that the deposit is used by the Ministry of Labor, Invalids and Social Affairs to make payments arising when the worker has not had their contract settled to send Vietnamese workers to work abroad under a labor contract, and is returned to the country at the time of transfer.

How are the regulations for the deposit when establishing a labor export company?

After deducting all service fees with the bank, if there is a surplus in the deposit, the enterprise is allowed to use it to settle any remaining expenses according to the bankruptcy laws.

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