Circular No. 20/LDTBXH-TT on guiding the establishment and management of vocational training centers

CIRCULAR

Guidelines for Establishing and Managing Vocational Training Centers

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Implementing Decree No. 90/CP dated December 15, 1995 of the Government detailing and guiding the implementation of certain Articles of the Labor Code regarding vocational training; after receiving opinions from relevant ministries and sectors, the Ministry of Labor, Invalids, and Social Affairs guides certain matters concerning the establishment and management of vocational training centers as follows:

I- APPLICABLE OBJECTS

According to Article 1 of Decree No. 90/CP dated December 15, 1995 of the Government, vocational training centers subject to this Circular include:

1- Vocational training centers of enterprises (holding companies, companies, factories, regardless of economic components).

2- Vocational training centers of organizations:

a) Vocational training centers under the Vietnam General Confederation of Labor; Vietnam Women's Union; Ho Chi Minh Communist Youth Union; Vietnam Farmers' Association; Vietnam Veterans' Association, etc.

b) Vocational training centers linked with job creation at employment service centers.

3- Private vocational training centers.

II- ESTABLISHING VOCATIONAL TRAINING CENTERS

1- Enterprises, organizations, and individuals meeting the conditions stipulated in Article 4 of Decree No. 90/CP dated December 15, 1995 of the Government who wish to establish a vocational training center must register with the Department of Labor, Invalids, and Social Affairs to obtain a permit (Form No. 1).

The registration documents include:

a) Application for establishing a vocational training center (Form No. 2);

b) Project on organization and operation of the vocational training center (Form No. 3);

The project content needs to clearly state:

- Training objectives: the highest skill level of each trade that the vocational training center can train;

- Location and scale: names of locations, number of classrooms, maximum number of students that can be accepted for each course;

- Names of trades offered;

- Teaching methods (teaching through which methods);

- Curriculum content (teaching according to the national standard curriculum or self-prepared curriculum);

- Equipment and machinery for teaching trades; quantity and main technical features of each type;

- Duration of training: longest, shortest, and average duration for each course;

- Teaching staff: number of teachers; qualifications of theoretical and practical instructors.

2- According to Article 5 of Decree No. 90/CP dated December 15, 1995 of the Government:

a) Vocational training centers regulated in Part I of this Circular that were established and operated before the issuance of this Circular must submit an application for a permit to the Department of Labor, Invalids, and Social Affairs. The registration procedures follow the provisions set out in Section I of Part II of this Circular.

b) Vocational training centers recognized by the Labor, Invalids, and Social Affairs Office as apprenticeship training centers at workshops or homes with fewer than 10 students regularly enrolled do not need to register their operations.

3- Review, issue permits and confirmation certificates:

a) The Department of Labor, Invalids, and Social Affairs is responsible for receiving and reviewing applications for establishing vocational training centers, ensuring compliance with state regulations and the authenticity of the application. Upon receipt of complete applications, the Department must notify the applicant of the permit decision within thirty days. If a permit is not issued, the reasons must be stated in writing to the applicant. When issuing a permit, the Department must also inform relevant agencies at the same level: tax, finance, market management, etc., for coordinated management.

After six months from the date of issuance of the permit, if the vocational training center does not operate, the issuing authority will revoke the permit.

b) Within twenty days of receiving a declaration or application for preferential treatment, the labor agency must perform the following tasks:

- The Labor, Invalids, and Social Affairs Office is responsible for reviewing and issuing a confirmation certificate for vocational training centers conducting apprenticeship training at workshops or homes with fewer than ten students regularly enrolled (Form No. 4).

- The Department of Labor, Invalids, and Social Affairs is responsible for reviewing and issuing a confirmation certificate for vocational training centers eligible for preferential treatment (Form No. 5).

III- RESPONSIBILITIES OF VOCATIONAL TRAINING CENTERS

Vocational training centers referred to in this Circular are responsible for implementing the provisions in Chapters III and IV of Decree No. 90/CP dated December 15, 1995 of the Government; Articles 6, 9, 16, 17, 18, and 19 of the Decree shall be implemented as follows:

1- Issuing vocational qualification certificates:

The director of an enterprise with a vocational training center, or the director of a vocational training center with legal personality, has the responsibility and right to issue vocational qualification certificates to trainees upon completion of a course based on ensuring the certificate issuance regulations and using the certificate format prescribed by the Ministry of Education and Training.

2- Providing protective equipment and occupational safety and health:

Vocational training centers are responsible for providing protective equipment, ensuring occupational safety and health for trainees in accordance with Decree No. 60/CP dated January 20, 1995 of the Government.

3- Signing and implementing vocational training contracts:

a) When accepting trainees for a period of fifteen days or more, the vocational training center must sign a vocational training contract with the trainee or the unit sending them for training, using the unified vocational training contract form of the Ministry of Labor, Invalids, and Social Affairs (Form No. 6). The contents of the vocational training contract must be fully recorded according to the form and comply with the provisions of Chapter IV of Decree No. 90/CP dated December 15, 1995 of the Government and the following provisions:

- The wage paid to trainees when they directly produce products according to their trade for the enterprise must not be less than seventy percent of the wage determined according to the skill level of workers producing similar products.

- If trainees only participate in the production process, the wage is based on the value added and agreed upon by both parties.

b) If a vocational training center unilaterally terminates a vocational training contract before the end of a course, it must report the reason to the Department of Labor, Invalids, and Social Affairs. Only after the Department confirms the reason as force majeure or another valid reason can the matter be handled according to state regulations.

c) Female trainees who become pregnant during the execution of a vocational training contract with an enterprise, if certified by a general hospital doctor or a district-level or higher health clinic that continuing the contract would adversely affect the fetus, are exempt from paying training fees if they unilaterally terminate the contract.

d) An enterprise recruiting individuals to learn a trade with the intention of having them work for the enterprise immediately upon completion of the training course shall, if the enterprise does not enter into a labor contract with the trainee, allow the trainee to enter into a labor contract with another party without being required to compensate for the training fees.

IV- INCENTIVES FOR VOCATIONAL TRAINING INSTITUTIONS

Pursuant to Articles 10, 13, and 15 of Decree No. 90/CP dated December 15, 1995 of the Government, vocational training institutions are entitled to incentives as follows:

1- The following vocational training institutions are exempt from taxes as prescribed by the Ministry of Finance:

a) Vocational training institutions exclusively for disadvantaged groups:

- A vocational training institution exclusively for persons with disabilities is a regular institution where at least 70% of the trainees are persons with disabilities.

- A vocational training institution exclusively for orphaned children without support is a facility dedicated solely to: children who have lost both parents, been abandoned by their families, or whose families are unable to care for them, with confirmation from the local authority or the Department of Labor, Invalids, and Social Affairs.

- A vocational training institution exclusively for ethnic minorities is a regular institution where at least 70% of the trainees are ethnic minority members.

These vocational training institutions exclusively for the aforementioned groups will be funded by the State for school construction, teaching equipment, teachers, management staff, and low-interest loans. Plans for building these vocational training institutions are included in the socio-economic development plan and the system planning of vocational training institutions at the provincial level. The Department of Labor, Invalids, and Social Affairs is responsible for developing projects for such vocational training institutions to submit to the People's Committee of the province for decision.

b) Vocational training institutions exclusively for socially delinquent individuals: are facilities dedicated solely to those undergoing drug rehabilitation or those who have left prostitution.

c) Traditional vocational training institutions: are institutions that teach trades passed down through generations, taught through the apprenticeship method by artisans.

d) Vocational training institutions providing on-the-job training at workshops or homes: are institutions that provide vocational guidance to trainees at production sites, focusing primarily on practical training and direct participation in product creation.

2- The following vocational training institutions are eligible for tax reductions as prescribed by the Ministry of Finance:

a) Vocational training institutions accepting disadvantaged groups: are regular institutions where at least 31% of the total number of trainees are persons with disabilities, ethnic minorities, or socially delinquent individuals, or a combination of these categories. Specifically, vocational training institutions accepting persons with disabilities can also borrow funds from a special employment fund for persons with disabilities.

b) Vocational training institutions in areas with high unemployment rates: are institutions established in villages, communes, or towns within districts.

c) Vocational training institutions in areas with high job loss rates: are institutions established in urban districts or cities where the unemployment rate is 7% or higher, as announced by the Ministry of Labor, Invalids, and Social Affairs.

To enjoy the right to incentives, including tax reduction and exemption, vocational training institutions as stipulated in Part IV of this Circular must be confirmed by the Department of Labor, Invalids, and Social Affairs (Form No. 5).

3- Vocational training institutions of employment service centers may develop projects for upgrading and request funding from the national employment fund or apply for low-interest loans.

V. IMPLEMENTATION

1- The Department of Labor, Invalids, and Social Affairs is responsible for:

a) Guiding enterprises (regardless of economic sector), organizations, and individuals specified in Part I of this Circular to prepare applications, review, and issue vocational training permits to operating institutions that meet the conditions, with the latest completion date set for December 30, 1996.

b) Monitoring, inspecting the activities, and handling violations of vocational training institutions according to Decree No. 90/CP dated December 15, 1995, this Circular, and Decree No. 38/CP dated June 25, 1996 of the Government.

c) Reporting to the Ministry of Labor, Invalids, and Social Affairs on the operation of vocational training institutions (Form No. 7) on June 30 and December 30 each year.

2- This Circular takes effect from the date of signature. All previous documents conflicting with this Circular are hereby abolished.

3- In the process of implementation, any issues encountered should be reported by ministries, sectors, localities, and vocational training institutions to the Ministry of Labor, Invalids, and Social Affairs for research and resolution.