policy and recommendations on administrative management of foreign labor bases for capability building of domestic labor

i ThAi nguyen University Southern luzon STATE University Socialist Republic of Vietnam Republic of Philippines Policy and Recommendations on Administrative Management of Foreign Labor: Bases for Capability Building of Domestic Labor Advisor: Associate Professor. Dr. DINH NGOC LAN Name of Student: NGUYEN THI TUYET VAN English Name: HELEN Date of Birth: 27/9/1972 Course: SLSU-DBA1 HANOI JUNE, 2013 THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA ii Acknowledgments I would like to express our most sincere thanks to the Management Board of the Southern Luzon State University, Thai Nguyen University, the teacher, the teacher of the school has helped me facilitate the learning process throughout. I would like to express sincere gratitude and profound Associate Professor. Dr. Dinh Ngoc Lan, enthusiastic teacher who have dedicated guidance, encouragement, spends time and exchange orientation for me during this research. I would like to express my sincere thanks to the Department of Employment - Ministry of Labor - Invalids and Social Affairs, the Department of Labor - Invalids and Social Affairs, Hanoi, Lang Son, Ninh Binh, Quang Ninh, Phu Tho, Nghe An, Thanh Hoa, Quang Nam, Da Nang, Ba Ria - Vung Tau, Binh Duong, Ho Chi Minh city and Dong Nai has helped me research material, through a questionnaire survey. I sincerely thank the Board of the University of Labor and Social affair (ulsa), colleagues in ULSA, classmates DBA1 facilitated enthusiastic help and share my experience to help complete the dissertation. Finally, I would like to send the gift to the heart of my family has passed enthusiasm and encouragement to complete my dissertation. THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA iii LỜI CẢM ƠN Tôi xin gửi lời cảm ơn chân thành nhất tới Ban Giám hiệu Southern Luzon State University, Đại học Thái Nguyên, các thầy giáo, cô giáo của Trường đã tạo điều kiện giúp đỡ tôi trong suốt quá trình học tập. Tôi xin bày tỏ lòng biết ơn chân thành và sâu sắc tới PGS. TS. Đinh Ngọc Lan, giáo viên tâm huyết đã tận tình hướng dẫn, động viên khích lệ, dành nhiều thời gian trao đổi và định hướng cho tôi trong quá trình thực hiện luận án. Tôi xin bày tỏ lời cảm ơn chân thành tới Cục Việc làm – Bộ Lao động – Thương binh và Xã hội; các Sở Lao động – Thương binh và Xã hội: Hà Nội, Lạng Sơn, Ninh Bình, Quảng Ninh, Phú Thọ, Nghệ An, Thanh Hóa, Quảng Nam, Đà Nẵng, Bà Rịa – Vũng Tàu, Bình Dương, thành phố Hồ Chí Minh và Đồng Nai đã giúp tôi về tài liệu nghiên cứu, khảo sát qua bảng hỏi. Tôi xin chân thành cảm ơn tới Ban Giám hiệu , các bạn đồng nghiệp trường Đại học Lao động – Xã hội, các bạn cùng lớp DBA1 đã tạo điều kiện, nhiệt tình giúp đỡ và chia sẻ kinh nghiệm giúp tôi hoàn thành luận án. Cuối cùng, tôi xin gửi tấm lòng ân tình tới gia đình của tôi đã động viên và truyền nhiệt huyết để tôi hoàn thành luận án. THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA iv DEED OF DECLARATION I, Nguyen Thi Tuyet Van (English name: Helen), hereby submit my dissertation for oral examination, entitled “Policy and Recommendations on Administrative Management of Foreign Labor: Bases for Capability Building of Domestic Labor” truthfully declare that the said paper is a product of my original research investigation. Signed this …………………… 2013 at Thai Nguyen University Nguyen Thi Tuyet Van DBA Candidate THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA v TABLE OF CONTENTS CHAPTER I: 1 INTRODUCTION 1 1.1. Background of the Study 1 1.2. Statement of the problem 7 1.3. Significance of the study 8 1.4. Scope and limitation of the study: 9 1.5. Definition of terms 10 CHAPTER II 13 REVIEW OF RELATED LITERATURE AND STUDIES 13 2.1. Review of related studies 13 2.1.1 Local of studies 13 2.1.2 Foreign of studies 16 2.2. Theoretical and conceptual framework 18 2.2.1. Administrative management of foreign labor 26 2.2.2 A foreign labor Error! Bookmark not defined. 2.2.3 The employer 32 2.2.4 Basic contents of the administrative management of foreign labor 21 2.2.5. The reasons and the existing conditions that led to enterprises of hiring foreign labor in term of: 39 2.2.6. The reasons sustain the hiring of foreign labor as perceived 42 2.2.7. The results and limitations in the management of State for foreign laborers working in Vietnam 46 CHAPTER III: METHODOLOGY 52 3.1. Methods of collecting information 52 3.1.1. Methods of collecting secondary data 52 3.1.2. Methods of collecting primary date 52 3.2. Data processing method 56 CHAPTER IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 58 4.1. Characteristics and understanding of foreign labors on the policy, legal documents relating to the management of foreign labors in Vietnam 58 4.1.1. General characteristics of foreign laborers working in Vietnam 58 4.1.2. Understanding of foreign labors on policies, laws relating to foreign labors 60 4.1.3. Find out the information channel transmiss legal document to foreign labors 62 4.2. The granting of labor license for foreigners working under labor contracts 63 4.2.1. Period of labor license 63 4.2.2. Regarding the term of the labor license 64 4.2.3. Promulgating the Act on foreign labors 64 4.3. Management of foreign labors in Vietnam 65 4.3.1 Foreign labors is need to manage information 65 4.3.2. The information of foreign labors have to register 66 4.3.3. Appropriate forms to manage foreign labors 67 4.3.4. The difficulties for enterprises / organizations on the implementation of the recruitment provisions to foreign labors 68 4.3.5. Additional provisions of the law in buying compulsory insurance for two types foreign labor 69 THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA vi 4.3.6. Additional provisions of the law of the place and work which is not allow to use of foreign labors 69 4.3.7. The necessity to promulgate the Act on foreign labor 70 CHAPTER V: FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 71 5.1. Findings 71 5.2 Conclusion 74 5.3 Recommendations 74 ACT ON FOREIGN LABORS 81 Chapter I 81 GENERAL PROVISION 81 Article 1: Scope 81 Article 2: Application objects 81 Article 3: Definitions 83 Article 4: The principle of the use of foreign labor 84 Article 5: Responsibilities of state management of foreign labors: 84 Article 6: Responsibilities of Employers 85 Article 7: Responsibilities of foreign labors 85 Article 8: Prohibited Acts 86 Chapter II 86 GRANTING WORK PERMITS, REISSUE OF LABOR LICENSE, EXPULSION OF FOREIGN LABORS WITHOUT LABOR LICENSE 86 Article 9: The case of foreign labors who are not eligible for a work permit granted 86 Article 10: Conditions for granting labor license for foreign labors 88 Article 11: Demand for foreign labors 88 Article 12: Profile granting labor license 89 Article 13: The term of the labor license 91 Article 14: The procedures for the labor license 91 Article 15: The cases reissue of the work permit 92 Article 16: Profile of the proposed reissue labor license 92 Article 17: Order of reissue of labor license 93 Article 18: The term of reissue of the labor license 94 Article 19: Revoke of work permit 95 Article 20: Expulsion of foreign labors 96 Chapter III PROTECTION OF FOREIGN LABORS 96 Article 21: Prohibition of Discrimination 96 Article 22: Wages payments and insurance 96 Article 23: Support for Organizations, etc., Related to Foreign labors 97 Article 24: Allows changing business, workplace 97 Chapter IV STATE MANAGEMENT OF FOREIGN LABORS 97 Article 25: Contents of state management for foreign labors 97 Article 26: State management authority for foreign labors 98 Chapter V INSPECT AND HANDLE VIOLATIONS OF 98 LAW RELATED OF TO FOREIGN LABORS 98 Article 27: Inspection of foreign labors 98 Article 28: Complaints and settlement of complaints and violations of the law on foreign labors 99 Article 29: Accusations and resolved accusations violations of the law on foreign labors 99 Article 30: Principles for handling violations of the law on foreign labors 99 THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA vii Article 31: The form of illegal handling of foreign labors 99 Chapter VI TERMS OF ENFORCEMENT 100 Article 32: Entry into force of the Law on foreign laborers working in Vietnam 100 Article 33: Detailing and guiding 100 REFERENCES 101 CURRICULUM VITAE 108 THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA viii Abstract Administrative management of foreign labor in Vietnam is not new topics, but always topical. Administrative management of foreign labors how to effectively, while enhancing the capacity of domestic labor is the topic that interest the dissertation author. In this dissertation, the author analyzes the legal status administrative management of foreign labor, the actual use of foreign labor, and the authors also survey to find out more about the inadequacies of policy, law to make recommendations as appropriate. Specifically, in the dissertation, the author has given data of foreign labors working in Vietnam and analysis of the current legislation on labor contracts for foreign labors, employment conditions use, recruitment procedures, workplace safety, compensation for foreign labors. Thus, the policies and regulations on foreign labor management basically refer deeper, wider. Of course, if the regulations governing foreign labor tight fit will enhance the capacity of domestic labor. Finally, the authors make conclusions and recommendations of the special products specifically with the Draft Law on foreign labors. THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA ix List of tables Table/chart Page Table 1.1: The cities/provinces of Vietnam using foreign labors 2 Table 2.1: Number of foreign labors in Vietnam 41 Table 2.2: Qualifications of foreign labors 41 Table 3.1: Distribution of the questionnaire for foreign workers in the provinces 49 Table 4.1: Some general information about foreign labors in Vietnam 70 Table 4.2: The policy, legal documents of Vietnam that Foreign labors known 72 Table 4.3: The information channel transmits legal document to foreign labors 74 Table 4.4: Opinion of foreign labors on labor license 75 Table 4.5: Opinions of workers of the term (24 months) of labor license 75 Table 4.6: Opinion of foreign labors promulgating the Act on foreign labors 76 Table 4.7: The object needs to manage information 77 Table 4.8: The information of foreign labors to register 78 Table 4.9: Appropriate forms to manage foreign labors 79 Table 4.10: The difficulties for enterprises/ organizations on the implementation of the recruitment provisions to foreign labors 80 Table 4.11: Additional provisions of the law on compulsory insurance are 2 types foreign labor to buy 81 Table 4.12: Additional provisions of the law of the place and work banned the use of foreign labors 81 Table 4.13: The necessity to promulgate the Act on foreign labor 82 Chart 1.1: The highest level of technical expertise gained 72 THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA x APPROVAL SHEET This dissertation, entitled “Policy and Recommendations on Administrative Management of Foreign Labor: Bases for Capability Building of Domestic Labor”, prepared and submitted by Nguyen Thi Tuyet Van in partial fulfillment of the requirements for the degree of Doctor in Business Administration has been examined and recommended for acceptance and approval for ORAL EXAMINATION. Associate Professor. Dr. Dinh Ngoc Lan Adviser Approved by the Committee on Oral Examination with a grade of PASSED on ……. 2013 Dr……………………… ………………… Member Dr……………………… ………………… Member Dr……………………… ………………… Member Dr……………………… ………………… Chairman Accepted in partial fulfillment of the requirements for the degree of Doctor in Business Administration. THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY Dean Dean [...]... Recommendations on Administrative Management of Foreign Labor: Bases for Capability Building of Domestic Labor The questions need to clarify in this study are: 1 What is the policy/ regulation of Vietnam on administrative management of foreign labor? 2 What are the reasons led to enterprises of hiring foreign labor? 3 What reasonable policy/ regulation should be reasonable to effectively administrative management. .. management of foreign labors in enterprises and organizations in Vietnam - For employers and foreign labors: The dissertation research will contribute to improve the rights and obligations of the two subjects in the labor relation In particular, the rights and obligations of foreign labor will be completed towards harmonization with domestic labor for useful of foreign labor and building capacity for. .. construction of apparatus, formation mechanism and management of the impact of policy making, the policy to all employers to use foreign workers and foreign laborers, administrative management of foreign workers are required to hold a full, timely and accurate information on foreign workers including the amount and structure of foreign labor by nationality, sex, age, qualification and status of foreign. .. unreasonable and to recommends on the administrative management of foreign labor 1.5 Definition of terms For the purpose of dissertation, the terms are interpreted as follows: - Administrative management of foreign labor: Administrative management of foreign labor is through a system policy, legal and institutional mechanisms for agencies to manage of state and control its impact on the relationship and operation... have actively building legislation, propaganda and urge out For state management agencies in local organized labor inspection, inspection companies use foreign labor in the area of their management; business requires regular reports on foreign labor In addition, the administrative management of foreign labors to capability building of domestic labor has some limitations: - No Act on foreign labor, these... also of other objects As a lecturer at the University of relevant labor management (University of Labor and Social affair under the Ministry of Labor - Invalids and Social Affairs of Vietnam), so the study topic Policy and Recommendations on Administrative Management of Foreign Labor: Bases for Capability Building of Domestic Labor is needed to play a part in the improvement of the administrative management. .. field of administration of foreign workers to focus stipulates conditions of foreign workers to work, recruitment procedures, the procedures for granting work permits, re-work permit, the competent authority management, content management, forms handling for illegal foreign workers Legal documents on administration of foreign labor is the basis for the inspection and supervision of the activities of agencies,... dissertation will focus on the following objectives: 1 To describe the policy/ regulation of Vietnam on administrative management of foreign labor 2 Analysis of the main reasons leading to Vietnam to hire foreign workers 3 Analysis of the reasonable policy/ regulation should be improved to effectively administrative management of foreign labor 4 To analyze of the government policy/ regulation that unreasonable... territory of Vietnam must explain the need for employers and approved in writing by the state agency competent 2.2.4 Basic contents of the administrative management of foreign laborers working in Vietnam, including: a Formulate and promulgate legal documents on the administrative management of foreign laborers Tools administration of foreign labor by law Therefore, the promulgation and implementation of the... Theoretical and conceptual framework of the dissertation as follows: 19 THAI NGUYEN UNIVERSITY SOUTHERN LUZON STATE UNIVERSITY –DBA Policy/ law Government: - Policy/ law on foreign labor - Policy/ law need to renew - Good policy/ law Recruitment Reaso policy Contract 13 provinces/ cities Employer Reasons the hiring of foreign labor Compensation Duration Unrea polic Foreign labor Reasons the hiring of foreign labor . of Labor - Invalids and Social Affairs of Vietnam), so the study topic Policy and Recommendations on Administrative Management of Foreign Labor: Bases for Capability Building of Domestic Labor . VIOLATIONS OF 98 LAW RELATED OF TO FOREIGN LABORS 98 Article 27: Inspection of foreign labors 98 Article 28: Complaints and settlement of complaints and violations of the law on foreign labors. addition, the administrative management of foreign labors to capability building of domestic labor has some limitations: - No Act on foreign labor, these regulations is still part of the Labor