The fact that the Ministry of Labour, Invalids and Social Affairs (MoLisa) licensed domestic enterprises to sublease labour will create a new look on the labour market. Vietnam Business Forum had a talk with Mr Ngo Dinh Duc, General Director of Le & Associates (L & A) on this topic. Giang Tu reports.
How does labour leasing market operate in Vietnam?
The labour subleasing has been for a long time, before the 2000s when Vietnam opened doors for foreign investors to do business in Vietnam.
This is an essential and familiar need with foreign-invested enterprises. As they expand their business in other countries, they need a professional labour leasing provider to enable them to rapidly expand and dominate the market. Currently, this kind of service is considered a trend and an important link in the supply chain in strategies of many companies. It is also why Labour Law 2013 had formal amendments in regulations for labour subleasing.
What is the importance of the licensing for local labour leasing providers?
We greatly appreciate directions and policies to make healthy the Vietnam’s rental market in which there exited many shortcomings and lack of transparency in providing services as well as the management of State to this market currently. This is a strong legal basis to help businesses in this segment operate safely and firmly acknowledged in market economic activities. Businesses accessing this service will also have a legal basis to evaluate and make right choices to avoid undue risks in their business.
L & A is the first domestic enterprise (after a Japanese company) who was licensed to operate in this field. This shows that our capabilities as well as operating conditions are recognized by local management agencies. MoLisa also highly appreciated our contribution to the stability of the labour market in Vietnam. This is an important milestone to affirm our prestige brand and quality in providing rental services, as well as to help us continue to invest and expand this kind of service to new markets and sectors in the future. also highly appreciated our contribution to the stability of the labour market in Vietnam. This is an important milestone to affirm our prestige brand and quality in providing rental services, as well as to help us continue to invest and expand this kind of service to new markets and sectors in the future.
How L & A policies help customers achieve cost efficiency as labour subleasing?
The nature of labour subleasing is to help customers solve the problem of quality and cost of labour flexibly and efficiently.
During the period of Vietnam negotiating the Trans-Pacific Partnership Agreement (TPP), or joining the Asean Economic Community (AEC), labor policies will have been gradually changed under trade agreements between members of the economic community as a whole.
Vietnamese enterprises and foreign invested enterprises have high demands in labour use in terms of the quality of labour resources from providers such as L&A. Therefore, rental firms must ensure a source of labour to meet customers’ requirements, not only in Vietnam but also other countries in the region. That should be a workforce with specialized skills and higher productivity, competitive cost, so enterprises can optimize cost and become more professional in business management.
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