Asia Counsel Insights: Tet February 2021

Deal Updates:

• Advised Kim Healthcare Group Corporation on USD24 million investment from series B investors including Singapore private equity funds, ABC World Asia and Aura Group.

• Established the subsidiary for the Anytime Fitness master franchise in Vietnam and registration of the master franchise with the Ministry of Industry and Trade.

Employment of Foreign Workers

On 30 December 2020 the Government issued Decree No 152/2020/ND-CP on employment of foreign workers, taking effect on 15 February 2020 (“Decree 152”). Decree 152 states that employers utilising foreign workers must provide the relevant authorities with information regarding the demand for any foreign employee to fill a position that cannot be fulfilled by a Vietnamese worker at least 30 days prior the employee’s planned start day. The Decree introduces more stringent criteria for determining experts and skilled workers permitted to work in Vietnam. Incoming experts must now provide evidence of at least three years work experience, with verified tertiary qualifications (or five years with a practicing certificate provided in lieu of tertiary qualifications), in their relevant field. Further, skilled workers must now also provide proof of five years of relevant work experience. Decree 152 also lists a number of exceptions to foreigners that require work permits, including: (i) foreigners married to Vietnamese citizens; (ii) owners, capital contributors, members or chairpersons of companies with capital of three billion VND or more; and (iii) others listed under Article 7 of Decree 152. Under Decree 152, work permits (issued for a period of two years) can now only be extended for another two year period on one occasion. Upon the expiry of the extended work permit, a new work permit must be applied for.

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