WORK PERMITS FOR FOREIGNERS IN VIETNAM 2025

I. THE ROLE AND LEGAL BASIS OF WORK PERMITS

A work permit serves as a key legal element determining the lawful ability of a foreigner to work in Vietnam. Every foreign citizen wishing to work within the territory of Vietnam must possess a valid work permit, except in specific cases exempted by law. Compliance with this regulation not only ensures the rights and obligations of the employee but is also the legal responsibility of the employing enterprise. The absence of a work permit not only places the employee at risk of deportation but also entails strict administrative sanctions for both the violating individual and the employing organization. Furthermore, a work permit is a prerequisite for foreigners to carry out other administrative procedures such as applying for a temporary residence card or visa, thereby strengthening the legal basis for long-term residence and employment in Vietnam.

The Vietnamese legal system governing the labor activities of foreigners is being continuously developed and refined, with notable updates in the 2024-2025 period. Key legal documents include the 2019 Labor Code, Decree 152/2020/NĐ-CP, which details the recruitment and management of foreign labor, and Decree 70/2023/NĐ-CP, which amended and supplemented several articles of Decree 152/2020/NĐ-CP, effective from September 18, 2023. Additionally, Decree 12/2022/NĐ-CP plays a significant role in stipulating the penalties for administrative violations in the labor sector.

II. NEW PROVISIONS IN THE 2024-2025 PERIOD

Recent notable changes include the promotion of the National Public Service Portal for submitting and tracking applications, along with stricter regulations on explaining the demand for foreign labor and thoroughly verifying the qualifications and experience of foreign employees. The increased use of the National Public Service Portal for application submission and tracking indicates a strategic direction by the Vietnamese Government to digitize administrative processes, aiming to enhance efficiency, increase transparency, and minimize direct interaction, thereby mitigating risks that may arise during application processing. Concurrently, the tightening of the process for justifying recruitment positions and verifying the qualifications and experience of foreign employees has been emphasized as a significant new point, reflecting a more stringent foreign labor management policy. This ensures that the foreign workforce genuinely fills positions that the Vietnamese labor force cannot yet meet. The combination of digitization and strict quality control demonstrates an increasingly mature legal environment, requiring businesses to be more thoroughly prepared and transparent in their use of foreign labor.

III. CONDITIONS FOR ISSUING A WORK PERMIT

1. General Conditions for Foreign Employees

To be permitted to work legally in Vietnam, a foreign employee must meet a series of basic conditions strictly stipulated by law. First, they must be 18 years of age or older and have full civil act capacity as prescribed by Vietnamese law. Health is also a crucial factor; the employee must be healthy enough to meet the requirements of the intended job, according to standards issued by the Ministry of Health. Regarding their criminal record, the foreign employee must not be currently serving a penalty, have an unexpunged criminal record, or be subject to criminal prosecution under Vietnamese or foreign law. Finally, the most critical condition is the possession of a valid work permit issued by a competent Vietnamese state authority, except in cases of exemption as provided in Article 154 of the 2019 Labor Code.

2. Conditions on Professional Qualifications and Experience

Vietnamese law also specifies requirements for professional qualifications, technical skills, craftsmanship, and work experience for foreign employees to ensure the quality and suitability of this workforce for the country's development needs.

For the position of Expert: Decree 152/2020/NĐ-CP clearly defines an expert as a person holding a bachelor's degree or higher (or equivalent) and having at least 3 years of work experience in the trained field, relevant to the intended job position in Vietnam. The decree also adds another important condition: a person with at least 5 years of experience in a job relevant to the intended position in Vietnam, accompanied by a related professional certificate.

For Technical Workers: Decree 152/2020/NĐ-CP stipulates that the worker must have been trained for at least 1 year and have at least 3 years of work experience in the trained field. Additionally, the decree introduces a new regulation requiring technical workers to have at least 5 years of experience in a job relevant to the intended position in Vietnam.

For certain specific occupations: such as aircraft maintenance, foreign crew members, or coaches, there are separate requirements for professional qualification certificates or high achievements, issued by competent authorities in Vietnam or abroad and recognized in Vietnam.

3. Policy of Prioritizing Domestic Labor

The continuous tightening of standards for qualifications and experience for foreign employees, especially for expert and technical worker positions, is a notable point in Vietnam's labor management policy. The requirement for businesses to provide a strict justification for why they cannot recruit Vietnamese workers for positions intended for foreigners shows a clear direction: Vietnam is increasingly prioritizing the development and use of its domestic human resources. It views foreign labor as a strategic supplement, intended only to fill gaps in high-level professional skills or in specific industries where the domestic labor force is not yet sufficient. This not only protects the domestic labor market but also encourages businesses to invest in training and enhancing the capacity of their Vietnamese staff. Therefore, businesses planning to recruit foreign labor must prepare thoroughly to demonstrate the necessity and value that foreign employees bring, ensuring that their employment aligns with Vietnam's socio-economic development goals.

IV. CASES OF WORK PERMIT EXEMPTION

Vietnamese law identifies a total of 20 cases where foreign employees are exempt from a work permit, covering various subjects such as experts, managers, executive directors, intra-corporate transferees, lecturers, researchers, and international journalists. These provisions are specified in Article 154 of the 2019 Labor Code and detailed in Article 7 of Decree 152/2020/NĐ-CP.

Categorization by role and job position: includes owners or capital-contributing members of limited liability companies with a capital contribution of 3 billion VND or more, and Chairpersons or members of the Board of Directors of joint-stock companies with a capital contribution of 3 billion VND or more. Additionally, heads of representative offices, projects, or heads of international organizations in Vietnam, along with foreign lawyers holding a valid law practice license in Vietnam, are also exempt.

Categorization by short-term work duration: specifically, foreigners working for less than 3 months in Vietnam are exempt from a work permit but must declare to the local labor management agency. More specifically, foreigners entering Vietnam to work for less than 30 days per entry and no more than 3 times per year, with a total working time not exceeding 90 days per year, also fall into this category.

Categorization by international and diplomatic regulations: includes intra-corporate transferees within the scope of 11 service sectors in Vietnam's schedule of specific commitments on services with the World Trade Organization, international journalists with a press activity license issued by the Ministry of Foreign Affairs, and relatives of members of diplomatic missions.

Categorization by educational, research, and volunteer purposes: includes foreign lecturers and teachers teaching in Vietnam, scientific researchers approved by a competent authority, and volunteers participating in official programs.

Categorization by business and service activities: includes experts in disaster relief and humanitarian aid, as well as foreigners implementing economic, commercial, financial, banking, insurance, scientific, and technological contracts.

Special case: a foreigner married to a Vietnamese citizen and residing in Vietnam. However, it should be noted that Decree 70/2023/NĐ-CP has made a significant change, no longer listing this subject as one not requiring a labor confirmation, but instead requiring them to complete the procedure for confirmation of not being subject to a work permit.

V. CONFIRMATION AND REPORTING PROCEDURES FOR WORK PERMIT EXEMPTION CASES

1. Procedure for Confirmation of Not Being Subject to a Work Permit

For cases exempt from a work permit, the employee and the enterprise still need to carry out the procedure for obtaining a confirmation of not being subject to a work permit. The required application dossier includes a written request for confirmation of work permit exemption (using Form No. 09/PLI), a certified copy of the passport, a valid health certificate, and documents proving the employee falls under the exemption category as per regulations. Notably, documents issued abroad must be consularly legalized and translated into Vietnamese with notarization before submission. The dossier can be submitted directly to the Department of Home Affairs where the enterprise is based or online through the National Public Service Portal.

2. Distinguishing Between "Confirmation" and "Reporting"

A clear distinction must be made between cases requiring confirmation of work permit exemption and cases that only require reporting. Cases not requiring confirmation but still requiring reporting include: foreigners working for less than 30 days per entry and no more than 3 times per year (total working time not exceeding 90 days/year); foreigners entering Vietnam to handle urgent technical incidents (the enterprise must report at least 3 working days in advance); members of the Board of Directors of a joint-stock company; owners of a limited liability company; holders of official passports; and relatives of members of diplomatic missions. The reporting procedure requires the enterprise to prepare a written report sent to the Department of Home Affairs, specifying the employee's information and the reason for the work permit exemption, accompanied by a certified copy of the passport and documents proving the exemption (if any). The report must be submitted at least 3 working days before the employee starts working.

3. Assessment of Increased Complexity in Management

The diversity and detail of the work permit exemption cases, along with the clear distinction between the requirements for "confirmation" and "reporting," indicate an increased complexity in the management of foreign labor in Vietnam. The requirement under Decree 70/2023/NĐ-CP for foreigners married to Vietnamese citizens to undergo the procedure for confirmation of work permit exemption, rather than being simply exempt as before, is a typical example of tighter and more comprehensive management. This implies that even cases that seem obviously exempt must undergo a specific administrative process to ensure transparency and compliance. This complexity poses a significant challenge for both enterprises and foreign employees in understanding and correctly complying with the regulations, demanding caution and a deep understanding of the law to avoid unnecessary errors.

VI. PROCEDURE AND DOSSIER FOR A NEW WORK PERMIT APPLICATION

The process for applying for a new work permit for a foreigner in Vietnam consists of several sequential steps, requiring thorough preparation and strict adherence to deadlines.

1. Step 1: Request for Approval of Demand for Foreign Labor Use

This is the first and most crucial step. Before recruitment, the employer must submit a written explanation of the demand (Form No. 01/PLI) or a written explanation of a change in demand (Form No. 02/PLI) to the Ministry of Home Affairs or the Department of Home Affairs. This document must clearly state the reasons, describe the job position, specify the required qualifications and experience, and particularly explain why a Vietnamese worker cannot be recruited for the position. Decree 70/2023/NĐ-CP has shortened the submission deadline from at least 30 days to at least 15 days before the intended date of employment. As of January 1, 2024, the job announcement for this position for Vietnamese workers must be posted on the electronic information portal of the Ministry of Labour, Invalids and Social Affairs (Department of Employment) or the City's Employment Service Center for at least 15 days before the date of the explanatory report.

2. Step 2: Prepare the Application Dossier for a Work Permit

After receiving the approval letter, the enterprise needs to prepare a dossier including:

A written request for a work permit (Form No. 11/PLI).

A health certificate or medical examination report valid for no more than 12 months.

A criminal record check issued within the last 6 months. Foreigners with a temporary residence confirmation in Vietnam can apply for a criminal record check at the Department of Justice in their place of residence.

Documents proving the applicant is a manager, executive director, expert, or technical worker (university degree, work experience confirmation, etc.).

Additional documents for certain specific occupations.

Two 4x6 cm color portrait photos, white background, taken within the last 6 months.

A certified copy of a valid passport and visa.

A certified copy of the enterprise's business registration certificate or relevant license.

A critical requirement is that all documents issued abroad must be consularly legalized and translated into Vietnamese with notarization.

3. Step 3: Submit the Dossier and Receive the Result

The enterprise submits the dossier to the Ministry of Home Affairs or the Department of Home Affairs where the employee is expected to work, at least 15 days before the employee's start date. The processing time is 5 working days from the date of receiving a complete and valid dossier. If the permit is not issued, the authority will provide a written response stating the reasons.

4. Assessment of the Enterprise's Responsibility

The legal requirement for enterprises to provide a detailed explanation of their need for foreign labor, including the reasons for not being able to recruit Vietnamese workers, indicates a significant increase in the enterprise's responsibility. The regulation on announcing job vacancies on electronic portals from January 1, 2024, creates a mechanism for transparency, allowing authorities to easily verify the authenticity of the explanation. Although the final processing time for issuing the work permit is only 5 days, the preceding preparatory steps are lengthy and complex, placing the burden of preparing the dossier on the enterprise. The goal of these changes is to ensure that foreign labor is used selectively and effectively, while enhancing transparency and the accountability of enterprises.

VII. VALIDITY, RENEWAL, AND RE-ISSUANCE OF WORK PERMITS

1. Validity of the Work Permit

According to Article 155 of the 2019 Labor Code, a work permit has a maximum validity of 2 years. The specific duration is determined based on one of the following factors (but not exceeding 2 years): the term of the employment contract; the duration of the foreign party's assignment; the term of the contract between the Vietnamese and foreign partners; the term of the organization's operating license; or the duration specified in the approval for foreign labor use.

2. Renewal of the Work Permit

A work permit can be renewed only once, for a maximum additional term of 2 years. To be eligible for renewal, the current permit must be valid for at least 5 days but no more than 45 days. The renewal procedure follows the provisions of Decree 70/2023/NĐ-CP.

3. Re-issuance of the Work Permit

A work permit can be re-issued in cases of: loss or damage; changes in personal information (full name, nationality, passport number, place of work); or a change in the enterprise's name without changing the enterprise code. The term of the re-issued permit will be equal to the remaining term of the previously issued permit.

4. Cases of Expiration and Revocation of the Work Permit

A work permit will expire or be revoked when: it reaches its expiration date; the employment contract is terminated; the content of the employment contract does not match the permit; the employee works outside the scope of the permit; the employing enterprise ceases operations; or when the issuing authority decides to revoke it.

5. Analysis of Management Policy

The policy of limiting the work permit to a maximum of 2 years and allowing only a single renewal reflects a highly controlled management approach. This suggests that Vietnam views foreign labor as a temporary solution, not a path to long-term employment. Linking the permit's validity to various factors allows authorities to maintain flexibility and continuous oversight. This policy encourages enterprises and foreign employees to have clear long-term plans, including preparing for re-applying for a new permit or planning for the end of their employment term, aiming to reduce long-term dependence on foreign labor and develop the national workforce.

VIII. PENALTIES FOR VIOLATIONS

Vietnamese law stipulates strict penalties for violations of work permit regulations, applicable to both the employee and the employer.

1. For Foreign Employees

Working in Vietnam without a valid work permit, without a confirmation of exemption, or using an expired permit will result in a fine ranging from 15,000,000 VND to 25,000,000 VND. Additionally, a supplementary penalty is deportation from Vietnam.

2. For Employers

Using foreign labor without a work permit, without a confirmation of exemption, or with an expired permit/confirmation will be penalized with progressive fines, as stipulated in Decree 12/2022/NĐ-CP:

From 30,000,000 VND to 45,000,000 VND (for 1 to 10 violations).

From 45,000,000 VND to 60,000,000 VND (for 11 to 20 violations).

From 60,000,000 VND to 75,000,000 VND (for 21 or more violations).

For violating organizations, the fine is double the amount applicable to individuals.

3. Significance of the Penalties

The high fines and deportation policy demonstrate Vietnam's seriousness in managing foreign labor. The application of progressive fines and double penalties for organizations emphasizes that the primary responsibility for compliance lies with the employer. These penalties are not just financial deterrents but also pose risks of losing key personnel, damaging the enterprise's reputation, and incurring significant legal costs, affirming the importance of legal compliance. This requires businesses to have a proactive compliance management strategy and professional support to mitigate risks.

IX. PRACTICAL CHALLENGES AND RECOMMENDATIONS

1. Common Challenges

Despite the refined legal framework, the implementation process still presents many challenges.

Prolonged Processing Times: Although the official processing time for the permit issuance step is 5 working days, the actual total time often extends to 45 to 60 days or more, due to the complexity of dossiers, additional verification requests, or differences in local procedures. This delay disrupts business operations and increases costs.

Complex and Inconsistent Dossier Requirements: Preparing the dossier is a significant burden. Common issues include unsuitable qualifications or experience; non-compliant health certificates; and complex procedures for criminal record checks. The requirement to justify not hiring a Vietnamese worker is also very strict.

Consular Legalization Process: This is a considerable obstacle, being time-consuming and requiring knowledge of each country's regulations, which can cause delays.

Limitation on Renewal Term: The single-renewal policy creates constraints for long-term cooperation plans, forcing enterprises and employees to constantly review their HR strategies.

2. Consequences and the Need for Professional Services

The gap between regulations and practical implementation, along with the complexity of the dossier, has created a significant administrative barrier, driving an increasing demand for professional services. Many enterprises, especially small and medium-sized FDI enterprises, have had to seek assistance from law firms to overcome these difficulties, even though it increases costs and time.

3. Practical Recommendations

To optimize the process and ensure compliance, enterprises and employees should:

Plan Early and in Detail: Start the work permit application process at least 2-3 months before the intended start date.

Prepare the Dossier Meticulously and Accurately: Ensure all documents are valid, complete, and properly translated, notarized, and consularly legalized from the outset, paying special attention to the relevance between qualifications, experience, and the job position.

Thoroughly Research Exemption Cases: Understand the cases of exemption and their accompanying confirmation/reporting requirements to avoid wasting time and money on unnecessary procedures.

Use Professional Consulting Services: Seeking assistance from experienced law firms or professional services can help resolve difficulties, ensuring the process is fast, accurate, and compliant, thereby minimizing legal risks.

X. CONCLUSION

The work permit is a crucial element, not only ensuring the legal operation of foreigners but also serving as a vital management tool for the State. The current legal framework, particularly the 2019 Labor Code, Decree 152/2020/NĐ-CP, Decree 70/2023/NĐ-CP, and Decree 12/2022/NĐ-CP, has established a strict legal structure. Recent updates indicate a trend towards digitization, tightening standards, and clarifying the responsibilities of all parties.

The complexity of regulations and practical challenges demand thorough preparation and a strategic approach. Severe penalties underscore the importance of legal compliance to avoid legal risks and significant financial and personnel losses. To ensure legal and effective operation, mastering the regulations, planning early, and meticulously preparing the dossier are prerequisites. In this context, seeking assistance from professional legal consulting services is an optimal solution, helping enterprises and foreign employees overcome administrative barriers, ensure compliance, and contribute to sustainable development.

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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