The Ministry of Home Affairs acknowledges the evolution of Vietnam’s employment services over the past four decades, gradually shaping up to international standards and practices.
A DUOPOLY OF PUBLIC AND PRIVATE EMPLOYMENT SERVICES WITH MINIMAL COMPETITION
Currently, there are two models of employment service organizations: public employment services (employment centers) and private employment services (businesses providing employment services) as stipulated in the 2013 Labor Law.
The public employment service system plays a pivotal role in implementing social security policies, offering counseling, job referrals, labor supply, and unemployment insurance.
At present, the public employment service system comprises 52 employment centers (42 under the management of the Department of Home Affairs and around 10 under the management of mass organizations and other entities) and 510 businesses providing employment services.
The two systems of public and private employment services coexist with minimal competition, mainly collaborating to meet the employment needs of both workers and employers.
Over time, the public employment service system has effectively played its role in connecting labor supply and demand. The target groups of the public employment service organizations are all workers, mainly unskilled, disadvantaged, and those from poor or near-poor households or impoverished regions.
During the 2021-2025 period, the public employment service system has intensified its efforts by organizing approximately 1,300 job fairs per year, providing counseling and job referrals to over 3 million people annually. On average, each job fair attracts 20-25 businesses and 200-300 job seekers.
Private employment service enterprises primarily operate in the segment of supplying and introducing skilled labor, especially highly skilled personnel, management staff, and executives. Their target groups are large corporations, businesses, and foreign-invested enterprises.
Annually, these private employment service enterprises provide counseling, job referrals, and labor supply services to tens of thousands of workers and thousands of businesses. They also offer consultancy services on efficient recruitment and management of high-quality human resources.
STREAMLINING THE LICENSING PROCEDURES FOR EMPLOYMENT SERVICE OPERATIONS
According to the Ministry of Home Affairs, the fourth industrial revolution has presented both opportunities and challenges for employment transactions. To enhance service quality, it is necessary to explore digital transformation and apply information technology in employment services.
However, the use of technology in employment transactions can also be exploited to deceive job seekers. Many fraudulent labor recruitment websites and phone services have emerged.
Additionally, there are self-organized employment transactions or online job fairs that are not properly managed, which affects the legitimate rights and interests of workers, employers, and legally operating employment service organizations.
Therefore, to ensure the implementation of the 2025 Labor Law and promptly address issues related to the organization and operation of employment services, the Ministry of Home Affairs is drafting a Government decree detailing the provisions of the Labor Law regarding employment services.
Some notable contents that the Ministry plans to specify include the conditions for granting licenses to operate employment services, which will continue to encompass the three existing requirements: material foundations, human resources, and escrow deposits.
However, these conditions will be modified and improved to ensure the reduction and simplification of administrative procedures related to production and business activities.
Specifically, for the condition of material foundations, only a stable location for employment service operations will be mandated. The condition pertaining to human resources will exclude the stipulation that the legal representative of the enterprise providing employment services must be its manager…
Additionally, the draft decree outlines the development of an electronic employment service platform (a national job exchange) at vieclam.gov.vn, which will be constructed and governed by the Ministry of Home Affairs.
Enterprises will be able to submit license applications for employment service operations directly at the provincial public administration centers or through postal services or the National Public Service Portal. This flexibility will reduce the time and costs for enterprises. The processing time for license issuance, re-issuance, and extension will also be shortened.
The circumstances for withdrawing escrow deposits have been scrutinized and will be explicitly defined to facilitate and economize the process for enterprises.
The draft decree also proposes a complete devolution of authority to local governments in granting, re-granting, extending, and revoking licenses for employment service operations, transferring this authority from provincial People’s Committees to the Department of Home Affairs.
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