Applying for a Vietnam Work Permit: Guidelines for Foreigners and Employers

On September 18, 2023, the Government enacted Decree No. 70/2023/ND-CP, amending and augmenting specific provisions outlined in Decree No. 152 concerning foreign workers in Vietnam, as well as the recruitment and oversight of Vietnamese employees working for foreign individuals and entities in the country.

A work permit is an official document that grants permission to work in a foreign country, known as the “country of work,” distinct from one’s “country of origin.” Vietnam issues work permits to foreigners who meet specific legal requirements. Holding a work permit signifies legality in employment, ensuring the protection of rights and interests within labor relations for the foreign employee.

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Vietnam’s work permit procedures can be confusing for first-time visitors. In this article we’ll explain the steps that foreigners should pay attention to when planning to work in Vietnam and key changes to the regulatory framework.

Conditions for foreign workers seeking a work permit

As per Article 151.1 of the Labor Code 2019, the conditions for foreign workers employed in Vietnam are as follows:

• Must be at least 18 years old and possess full legal capacity.
• Should hold technical, professional, or occupational qualifications and experience, along with meeting the health standards specified by the Minister of Health.
• Must not be currently serving a sentence, have unresolved criminal records, or be under criminal prosecution under foreign or Vietnamese law.
• Must possess a valid work permit issued by a competent state management agency in Vietnam, except for cases specified in Article 154 of the Code.

Foreign workers employed in Vietnam are obliged to adhere to the aforementioned conditions and the Labor Code of Vietnam. They are entitled to protection under Vietnamese law, unless otherwise stipulated by international treaties to which the Socialist Republic of Vietnam is a signatory.

Eligibility to apply for a work permit

The eligibility criteria for applying for a work permit in Vietnam have been provided in Decree 152/2020/ND-CP. Foreigners entering Vietnam for the following purposes are eligible:

• Executing labor contracts.
• Participating in intra-company transfer programs.
• Engaging in contracts or agreements pertaining to business, commerce, finance, banking, insurance, science and technology, culture, sports, education, vocational training, and health.
• Providing services under contracts.
• Offering services independently.
• Working for foreign non-governmental organizations or international organizations in Vietnam that hold operating licenses under Vietnamese law.
• Serving as managers, chief executive officers, experts, technicians.
• Participating in the execution of bid contracts and projects in Vietnam.

Furthermore, the law specifies entities qualified to sponsor a work permit for foreign employees:

• Enterprises operating under the Enterprise Law, Investment Law, or international treaties ratified by the Socialist Republic of Vietnam.
• Contractors involved in bidding and contract performance.
• Representative offices, branches of enterprises, agencies, and organizations licensed for establishment by competent authorities.
• State agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations.
• Foreign non-governmental organizations granted licenses by competent Vietnamese authorities in accordance with Vietnamese law.
• Non-business organizations and educational institutions established under Vietnamese law.
• International organizations, foreign project offices in Vietnam, agencies, and organizations authorized for establishment and operation by the Government, Prime Minister, ministries, and sectors under Vietnamese law.
• Operating offices of foreign investors under business cooperation contracts or foreign contractors licensed to operate under Vietnamese law.
• Organizations operating in legal areas in Vietnam as per Vietnamese law.
• Cooperatives and cooperative unions established and operated under the Cooperative Law.
• Business households and individuals conducting business activities in accordance with Vietnamese law are also permitted.

Work permit application process: Key timelines and documentation

Below are the procedures and documents required to obtain a work permit in Vietnam, which both the employer and the foreign employee must adhere to.

Application procedure and documentation required

Step 1: Apply for approval of hiring foreign workers

The employer is advised to submit the application for approval of demand for foreign workers at least 15 days before the anticipated start date of the foreign employee’s work. The following documents are required:

• Registration form for demand for foreign workers (Form No. 01/PLI under Decree No. 152/2020/ND-CP or Form No. 02/PLI for changes in demand).
• Certified copy of business registration.
• Letter of attorney if the submitter is not the company’s legal representative.

These documents can be submitted directly to the Department of Labor, War Invalids and Social Affairs where the foreign worker is expected to work or online at National Public Service Portal (dichvucong.gov.vn).

Step 2: Prepare documents for work permit

The employer must prepare the following documents:

• Application form for Vietnam work permit (Form No. 11/PLI).
• Original health check issued in Vietnam or legalized if issued abroad, along with a certified Vietnamese translation (issued within the last 12 months).
• Original Vietnam Police Check or legalized if issued abroad, attached with a certified Vietnamese translation (issued within the last 6 months).
• Certified copy of valid passport.
• Approval letter obtained in Step 1.
• Two 4*6cm photos (meeting the photo requirements).
• Legalized documents proving the foreigner’s eligibility for the applied position, along with certified Vietnamese translations.

Step 3: Submit documents to obtain work permit in Vietnam

At least 15 days before the foreign worker’s expected start date, the employer must submit the prepared documents to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs of the relevant province.

Processing and costs

The processing time for a work permit request is a total of 20 working days (after receiving all required documents), comprising:

• 15 days for the approval of the demand for employing foreigners.
• 5 working days for the issuance of the work permit.

However, it is strongly advised to initiate the procedure at least 30 days before the anticipated start date of work for the foreigners.

The cost of a Vietnam work permit varies depending on where the application forms are submitted.

Source: National Public Service Portal (dichvucong.gov.vn)

Result of the application

Within 5 working days after receiving a complete application for a work permit, the Department of Labor, War Invalids and Social Affairs where the foreign worker plans to work shall issue a work permit to the foreign worker according to Form No. 12/PLI Appendix I issued together with Decree No. 152/2020/ND-CP.

In case of refusal to issue a work permit, a written response clearly stating the reason shall be given.

Validity, renewal, and termination

According to Decree No. 152/2020/ND-CP, a work permit in Vietnam is initially valid for up to 2 years. It can be renewed once for an additional 2 years through the Vietnam work permit extension process. Upon the expiration of the extended work permit, the employer must follow the same procedure to obtain a new work permit if they intend to continue employing the foreign employee.

A work permit may be terminated under the following circumstances:

• Expiry of the work permit.
• Termination of the labor contract.
• Inconsistency between the content of the labor contract and the granted work permit.
• Expiry or termination of contracts in business, trade, finance, banking, insurance, science and technology, culture, sports, education, or medicine.
• Announcement of termination by the foreign employer for the foreign employee working in Vietnam.
• Withdrawal of the work permit by the authorized state agency.
• Termination of operations by the company, organization, or partners in Vietnam.

Amendments to regulation of foreign employment

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On September 18, 2023, Vietnam issued Decree No. 70/2023/ND-CP, making changes to the regulation of foreign worker employment. The Decree seeks to streamline procedures and reduce the bureaucracy involved, while also prioritizing employment prospects for Vietnamese nationals.

Importantly, the decree incorporates additional criteria for the recruitment of foreign workers, emphasizing a balanced approach to workforce management. Previously foreign workers were regulated by Decree No. 152 /2020/ND-CP.

Authority to grant work permits now with MOLISA and DOLISA

Work permits and the oversight of foreign worker affairs were previously managed by economic and industrial zone authorities – this is no longer the case per changes introduced under Decree 70/2023/ND-CP.

The Ministry of Labor, Invalids and Social Affairs (MOLISA) now holds the responsibility of issuing work permits and overseeing all related matters for foreign employees engaged by organizations authorized to be established by the Government, Prime Minister, Ministries, Ministry-level agencies, or Government agencies. These organizations may include entities operating within the banking or insurance sectors.

Additionally, MOLISA is tasked with granting work permits to foreign employees employed by an employer across multiple provinces or municipalities.

In cases not falling under MOLISA’s jurisdiction, the relevant provincial Department of Labor, Invalids and Social Affairs (DOLISA) is responsible for issuing work permits and managing related matters.

Moreover, the authority of management boards of industrial zones or economic zones to grant work permits or work permit exemption certificates to foreign employees working within these zones has been revoked.

Compliance rules for companies seeking foreign hires

Faster recruitment timeframe

Enterprises seeking to employ foreign workers are now required to inform the Vietnamese authorities 15 days prior to the intended employment date, marking a decrease from the previous 30-day period.

Preference for Vietnamese hires

However, effective January 1, 2024, companies in Vietnam are obligated to advertise job vacancies via MOLISA’s online platform for a minimum of 15 days before considering foreign applicants. Only upon demonstrating unsuccessful efforts to find a qualified Vietnamese candidate can they proceed with recruiting from overseas. This directive from Vietnamese authorities aims to enhance transparency and accessibility for employers while concurrently safeguarding the rights and opportunities of Vietnamese workers.

Reporting obligations for working in multiple provinces and municipalities

Under Decree 70/2023, there are reporting obligations concerning foreign employees working in more than one location. It specifies that if a foreign worker is assigned to work in multiple provinces/municipalities across Vietnam, the employer is required to submit an online report to both the MOLISA and the respective DOLISA of the relevant provinces or municipalities within three working days from the start of the employee’s work.

Work permit criteria for experts and technicians

Decree 70/2023 streamlines the process for work permit applications for “experts” and “technicians” by eliminating the necessity for their education or training to precisely align with their job roles. Instead, the emphasis for demonstrating skills is placed on practical experience rather than academic credentials. Also, previously issued work permits and exemption certificates can now serve as evidence of relevant work experience.

Work permit eligibility for business managers

Decree 70/2023 provides clear guidelines regarding the documentation required as evidence of work permit eligibility for “business managers.”

While the definition of “business manager” remains consistent with Decree 152, employers are now obligated to furnish the following documents as proof:

• The enterprise’s charter or operational regulations;
• The enterprise’s registration certificate, establishment certificate, or decision; and
• The enterprise’s resolution or decision regarding the appointment of the foreigner to the position of business manager.

Work permit criteria for executive management

The designation of Executive Director has been updated to CEO (Chief Executive Officer). To be eligible for a work permit under the title of CEO, a foreign worker must meet one of the following criteria:

• Lead a branch, representative office, or the business site of the enterprise.
• Directly oversee and manage at least one department or area within the organization or enterprise, under the supervision and direction of the organization or enterprise’s head.

Other updates

Additional amendments include:

• Sponsors now have the option to present certified copies of foreign passports instead of requiring notarized versions.
• Foreign nationals married to Vietnamese citizens residing in Vietnam are no longer obligated to secure approval from labor management authorities prior to applying for work permit exemptions.

Exemption scenarios for work permit requirements

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Various scenarios exist where foreign workers may be exempt from the requirement of obtaining a work permit to operate in Vietnam.

The recent decree has revised the definition of individuals engaged in teaching or research activities at international schools linked with diplomatic missions (Section 2, Article 7.6), replacing the explicit mention of the United Nations with “intergovernmental organizations.”

Furthermore, Article 7.14 expands this exemption to foreign workers endorsed by the Ministry of Education and Training for the following purposes:

• Engaging in teaching and research endeavors; or
• Assuming managerial, executive, directorial, principal, or vice-principal roles within an educational institution affiliated with a foreign diplomatic mission or intergovernmental organization.

This article is for information purposes only. For professional guidance and queries, please reach our experts at vietnam@dezshira.com

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