Vietnam’s burgeoning economy and increasing appeal as a tourist destination present many professional and entrepreneurial prospects. However, before entering the market, foreign individuals and businesses must navigate the intricacies of work visas and permits.
The introduction of Decree No. 70/2023/ND-CP has streamlined immigration and residency protocols. It eases the path for foreign investors and businesses seeking to establish themselves in Vietnam. In light of this, InCorp Vietnam offers comprehensive Work Permit Services tailored to the needs of foreign investors, facilitating a seamless integration into the country’s dynamic business landscape.
This article serves as a guide, elucidating the essential requisites, procedures, and conditions for obtaining a work permit in Vietnam.
Need help with a Work Permit in Vietnam? Check out InCorp Vietnam’s Immigration Services now!
Foreigners are Welcome in Vietnam
Due to the three compelling factors below, Vietnam stands out as a magnet for foreign employment.
- Firstly, this country needs more technical expertise in key sectors. This shortfall fuels a growing demand for foreign professionals who bring specialized skills and knowledge to fill these gaps.
- Secondly, unlike its Asian counterparts like China and Japan, Vietnam offers a relatively untapped landscape for expatriates. With a limited presence of foreigners, it presents a unique opportunity for those seeking cultural immersion in a less Westernised environment, fostering distinctive cross-cultural exchanges.
- Thirdly, foreign investment floods into Vietnam, serving as a linchpin for economic growth. The infusion of resources and capital from abroad is instrumental in propelling the nation’s economic trajectory.
Vietnam’s reputation as one of the world’s most welcoming nations underscores its hospitable environment for expatriates. Rooted in its culture, politeness, and respect are ingrained values, ensuring that visitors are greeted with warmth and hospitality. Despite language barriers, foreigners are met with smiles and a genuine eagerness from locals to engage and interact, fostering a sense of belonging. This welcoming attitude, rated positively by 83% of respondents in a survey by the largest global community for expatriates, significantly contributes to expats’ well-being.
Notably, Vietnam’s friendly disposition towards foreign residents has earned it a coveted spot among the top ten most welcoming countries globally. Recognized by prestigious international publications like Far & Wide, the country’s transformation from a nation scarred by historical conflicts to a beacon of warmth and hospitality has captivated expatriates. They frequently laud the nation’s “friendly vibe” and the kindness of its locals.
Read Related: Ease of Doing Business in Vietnam: Why Do Foreign Investors Choose This Destination?
What is a Work Permit for Foreigners in Vietnam?
In Vietnam, a work permit is a mandatory document for foreign employees issued by the Department of Labor, Invalids, and Social Affairs. This permit is essential for those who meet specific legal requirements outlined under Labor Code No. 45/2019/QH14 and Decree No. 152/2020/ND-CP and allows them to work legally in the country.
The work permit recognizes the holder as a legitimate employee and is vital for protecting their rights and interests within labor relationships. It is important to note that foreign workers cannot apply for the permit directly; instead, they must obtain it through their employers or a designated service center in Vietnam.
A valid work permit is necessary when applying for a temporary residence card or a working visa. This permit helps foreign workers to integrate into the local workforce and ensures adherence to national labor regulations.
Read Related: Difference between a Vietnam Work Permit and a Temporary Residence Card
Conditions for Foreign Workers Working in Vietnam
As per Article 151.1 of the Labor Code 2019, foreign workers in Vietnam must meet the following conditions:
- They must be at least 18 years old and possess full civil capacity;
- As outlined by the Minister of Health, they should hold technical, professional, or occupational qualifications and experience and have suitable health conditions;
- They must not be serving a sentence, have an unrepealed criminal record, or undergo criminal prosecution under Vietnamese or foreign law;
- A valid work permit issued by an authorized state management agency of Vietnam is required unless exempted under Article 154 of the Code.
Foreign workers must adhere to these conditions and the Labor Code of Vietnam. They are entitled to protection under Vietnamese law unless stipulated otherwise by international treaties to which the Socialist Republic of Vietnam is a signatory.
Who is Eligible for a Work Permit in Vietnam?
In Vietnam, foreign nationals seeking employment are required to obtain a work permit to ensure their legal working status. According to Decree No. 152/2020/ND-CP, foreigners who may apply for this permit include the following criteria:
- Those entering Vietnam to execute labor contracts;
- Those who participate in intra-company transfers;
- Those who perform tasks related to various business and professional services;
- Those who work for licensed foreign non-governmental or international organizations;
- Those eligible to work as managers, executives, experts, or technicians or who are involved in executing bids and projects.
Entities authorized to sponsor work permits for foreign employees are varied. It includes:
- Enterprises established under Vietnam’s Enterprise Law or Investment Law;
- Contractors performing contractual obligations;
- Representative offices;
- Organizations are licensed by competent authorities, along with state and political bodies.
The Ministry of Labour, Invalids, and Social Affairs (MOLISA) are responsible for issuing work permits, which are essential for foreigners planning to work in Vietnam for longer than three months. There are exceptions, such as co-owners of a limited liability company or board members of a joint-stock company. Applicants must not enter this country on a tourist visa, with certain exceptions allowed by MOLISA on a case-by-case basis.
Requirements for Obtaining a Work Permit in Vietnam
In compliance with regulations, a foreign employee seeking a work permit must fulfill the following criteria:
- The foreign employee must possess full legal capacity as stipulated by law.
- They must demonstrate suitable health conditions to fulfill the job requirements.
- They must have no criminal record or ongoing criminal proceedings under Vietnamese or foreign law.
- The foreign employee must hold a managerial, operational, expert, or technician position and provide documentation verifying their status following Article 3 of Decree No. 152/2020/ND-CP.
For Foreign Experts
- Possessing a bachelor’s degree or higher or equivalent qualification, along with a minimum of 3 years relevant experience in the field corresponding to the job role in Vietnam.
- Alternatively, you must have at least 5 years of relevant experience along with a practicing certificate duly legalized by consular authorities specific to the intended job in Vietnam.
For Technical Workers
- Individuals must have undergone technical training for at least one year and a professional tenure of at least three years in their respective fields, certified by consular legalization.
- Alternatively, candidates must demonstrate at least five years of experience directly related to their job in Vietnam.
For Executives and Managers
- A formal Decision for Appointment is required.
- Additionally, candidates must possess at least five years of experience relevant to the intended job role in Vietnam.
Work Permit Application Procedures in Vietnam
To legally hire a foreign employee in Vietnam, employers must follow a detailed and structured process outlined below:
Step 1: Apply for Approval to Hire Foreign Employees
- Timeline: At least 30 days before the expected employment start date.
- Procedure: Employers (except bidders) must submit a request for demand approval for foreign employees to the Ministry of Labor, War Invalids and Social Affairs or the provincial People’s Committee.
- Method: For online submissions, employers must register an account and submit their application at least 20 days before the employee’s start date.
- Documentation: A form of Explanation for the demand for hiring foreign employees as per Circular No. 40/2016/TT-BLDTBXH.
- Response Time: For valid applications, within 12 days. If corrections are needed, a notice will be issued.
Step 2: Receive Approval and Submit Original Documents
- Procedure: After receiving email approval, submit or post the original documents to the competent authority.
- Response Time: The original approval result will be returned to the employer within 8 hours of receiving the documents.
Step 3: Submit an Application for a Work Permit
- Timeline: At least 15 days before the commencement of employment
- Procedure: Apply for a work permit to the Ministry of Labor, Invalids and Social Affairs or the Department of Labor, War Invalids, and Social Affairs in the province where the employee is expected to work.
- Documentation: Includes an application form, original health check, police check, passport copy, approval letter from step 1, photos, and documents proving eligibility for the position.
- Response Time: Usually, 5 working days from the date of the reception of a complete and valid application.
Step 4: Receive the Work Permit
- Outcome: The work permit will be issued within five working days in Form 12/PLI, as per Decree No. 152/2020/ND-CP.
- In case of Refusal: The Ministry or Department of Labor, War Invalids and Social Affairs will inform the employer in writing stating the reason for refusal.
Processing Duration and Expense for Vietnam Work Permits
The process and cost of obtaining a work permit for a foreign employee in Vietnam vary by location, with different provinces and cities setting their fees. Employers are advised to start the application process at least 30 days before the foreign worker is expected to begin their job. Once all required documents are submitted, the Ministry of Labor, Invalids, and Social Affairs (MoLISA) typically takes about 15 business days to approve the hire.
After approval, if the subsequent paperwork for the work permit is correctly filed, the permit is usually issued within five additional business days, totaling around 20 working days for the entire process. The work permit is initially valid for up to two years and can be extended once for another two years.
A new application must be filed after the second extension expires. It is important to note that if the employing company closes or the employment contract is terminated, the work permit may also be revoked.
Vietnam Work Visa vs Work Permit: A Comparison Table
Below, we have shared the fundamental differences between a work permit and a work visa for your easy understanding.
| Title | Work Visa | Work Permit |
| Definition | A visa (with categories LD1 or LD2) based on the invitation or guarantee of a foreign agency or organization that has been granted permission, allowing foreigners to enter Vietnam to work | A work permit is a labor document, a legal basis to prove that a foreigner is allowed to work legally in Vietnam. |
| Issuing Authority | The Immigration Department of Vietnam or Vietnamese consular offices/embassies | Ministry of Labor – Invalids and Social Affairs or Department of Labor – Invalids and Social Affairs |
| Duration | It cannot exceed 02 years. Vietnam Work Visas will not be longer than 2 years; for foreigners, the duration of the Vietnam Work Visa will be equal to the duration of the Work Permit. | Work Permits are used to demonstrate that a foreigner meets the conditions to apply for a temporary residence card or Visa work permit |
| Nature | Vietnam Work Visas are only granted to foreigners who have a valid Work Permit. | Work Permits are used to prove the eligibility of foreigners to work legally in Vietnam. |
| Applicant | Foreign nationals can apply at Vietnamese consular offices/embassies. | Foreigners cannot directly submit their application to the competent authority; it must be done through the employer. |
Updates: Some Highlights from Decree No. 70/2023/ND-CP
In Vietnam, employers are required to sponsor all foreign workers, with the employing foreign company necessitating a presence in the form of a Vietnamese branch, subsidiary, or representative office. Starting 1 January 2024, employers must assess foreign workers’ needs 15 days before their intended employment start date. Additionally, job vacancies must be posted on the Department of Employment’s portal specifically for foreign worker roles, also 15 days in advance.
The process for obtaining a work permit in Vietnam involves several steps for both employers and employees:
- Obtain a pre-approval letter.
- Complete a work permit application through InCorp Vietnam.
- Declare temporary residence status.
- InCorp Vietnam facilitates the preparation of all required documents and application forms for submission to the Department of Labor in Vietnam.
Here are some key highlights from Decree No. 70/2023/ND-CP that foreign companies and individuals should take note of:
- Management Authority: Oversight of foreign workers in Vietnam falls under the purview of two main entities: the Ministry of Labor, War Invalids and Social Affairs, specifically its Department of Employment, and the Department of Labor, War Invalids, and Social Affairs. The latter department manages foreign labor in industrial parks and economic zones, ensuring adherence to regulations and optimizing workforce efficiency.
- Reissue of Work Permit: The process of reissuing work permits now includes scenarios such as loss, damage, or changes in details like name, nationality, passport information, work location, or business name (without changing the code). Moreover, the new regulations no longer require proof of the necessity of foreign workers for every case, simplifying the reissue process.
- Renewal of Work Permit: Decree No. 70/2023/ND-CP modifies the requirement for submitting documents for work permit renewal. The previous requirement of a “Certified copy of passport,” as outlined in Decree No. 152/2020/ND-CP, is replaced with “Certified copy of passport or copy of passport with confirmation of employer“.
- Mandatory Reporting for Non-Exempt Cases: Foreigners married to Vietnamese citizens and residing in Vietnam are exempt from work permit confirmation procedures. However, in cases where an exemption from work permits is not applicable, mandatory reporting is required.
Looking for assistance with a Work Permit in Vietnam? Explore InCorp Vietnam’s Immigration Services today!
About Us
InCorp Vietnam is a leading market entry and corporate services firm in Vietnam. We are part of InCorp Group, a regional leader in corporate solutions that encompasses 9 countries in Asia-Pacific, headquartered in Singapore. With over 1,500 legal experts serving over 20,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup, and advice based on local requirements to make your business fit into the market perfectly with healthy growth.
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