Work Permit Application Solutions for Foreigners in Vietnam

A Work Permit is an essential legal document issued by the Ministry of Labor, Invalids and Social Affairs (or the provincial Department of Labor, Invalids and Social Affairs where the foreign employee intends to work). It’s what allows a foreign national to work legally in Vietnam. Under current Vietnamese law, obtaining a Work Permit is mandatory for foreigners wishing to work here, with specific exemptions outlined by law.

More than just a piece of paper, a Work Permit legally validates a foreigner’s employment status in Vietnam. It’s also a prerequisite for the labor contract between them and a Vietnamese enterprise to hold legal validity.

If you’re a business exploring the process of hiring foreign employees, or a foreign individual aiming to work in Vietnam, you’re likely concerned about various Work Permit services: new applications, confirmations of exemption, extensions, and re-issuances. Let AZVLAW be your dedicated partner. We’ll help you gain a clear understanding of each specific service, enabling you to choose the most suitable solution and complete the necessary procedures quickly and efficiently.

Contents

1. Obtaining a New Work Permit

Applying for a new Work Permit is a mandatory legal procedure and the crucial first step to formalizing the employment of a foreign worker in Vietnam. Without a valid Work Permit or equivalent legal documentation (such as a Work Permit Exemption Confirmation), foreign employees are considered to be working illegally, which constitutes a violation of Vietnamese law.

According to Article 2, Clause 1 of Decree 152/2020/ND-CP, a foreign worker is defined as a foreign national working in Vietnam under one of the following forms:

Executing a labor contract.
Internal corporate transfer (intra-company transferee).
Performing contracts or agreements related to economics, commerce, finance, banking, insurance, science and technology, culture, sports, education, vocational training, and health.
Contractual service provider.
Offering services.
Working for foreign non-governmental organizations or international organizations in Vietnam authorized to operate under Vietnamese law.
Volunteer.
The individual responsible for establishing a commercial presence.
Manager, executive director, expert, technical worker.
Participating in the execution of bids or projects in Vietnam.
Relatives of members of foreign representative agencies in Vietnam are allowed to work in Vietnam as stipulated by international treaties to which the Socialist Republic of Vietnam is a signatory.

For the application process for a new Work Permit, foreign employees must be categorized under one of four specified job positions: Manager, Executive Director, Expert, or Technical Worker.

Understanding Job Positions for Work Permits

- Manager: This refers to an individual holding a management position within an enterprise as stipulated in Clause 24, Article 4 of the Enterprise Law, or the head/deputy head of an agency or organization.
- Executive Director: This is the head of a branch, representative office, or business location of an enterprise; or an individual who heads and directly manages at least one field of an agency, organization, or enterprise, and is directly supervised and managed by the head of that agency, organization, or enterprise.
- Expert: An individual who holds a university degree or equivalent qualification and has at least 3 years of work experience relevant to the job position they intend to work in Vietnam; or an individual who has at least 5 years of experience and a practice certificate suitable for the job position they intend to work in Vietnam.
- Technical Worker: An individual who has been trained for at least 1 year and possesses at least 3 years of work experience suitable for the job position they intend to work in Vietnam; or an individual who has at least 5 years of experience in a job suitable for the position they intend to work in Vietnam.

2. Work Permit Exemption: When You Don’t Need a Permit (But Still Need Confirmation)

While Article 151, Clause 1 of the 2019 Labor Code generally mandates a Work Permit for foreign workers in Vietnam, there are specific instances where foreign employees are exempt from this requirement. These cases are detailed in Article 7 of Decree 152/2020/ND-CP, which has been amended and supplemented by Decree 70/2023/ND-CP.

Even if you fall into an exempt category, it’s crucial to understand that you still need to complete procedures to obtain a Confirmation of Work Permit Exemption. This confirmation acts as a legal equivalent to a Work Permit, serving as the legal basis for the foreigner to work lawfully and complete other necessary procedures in Vietnam.

Currently, there are 20 specific cases where foreign workers are exempt from requiring a Work Permit, categorized into three main groups:

2.1 Group 1: Cases Requiring Labor Demand Approval & Exemption Confirmation

These are situations where the employer must first obtain approval for the demand to use foreign labor, and then proceed with the exemption confirmation:

Intra-company transfers within the scope of 11 service sectors in Vietnam’s Schedule of Specific Commitments to the World Trade Organization (WTO), including business, information, construction, distribution, education, environment, finance, health, tourism, cultural and entertainment, and transport services.
Foreigners sent by a competent foreign agency or organization to Vietnam to teach or research at an international school under the management of a foreign diplomatic mission or the United Nations, or at facilities/organizations established under agreements to which Vietnam is a signatory.
Cases regulated by international treaties to which the Socialist Republic of Vietnam is a member.

2.2 Group 2: Cases Only Requiring Work Permit Exemption Confirmation

For these scenarios, only the confirmation procedure is necessary; prior labor demand approval is not required.

Entering Vietnam to provide professional and technical consulting services or perform other tasks serving the research, development, appraisal, monitoring, evaluation, management, and implementation of Official Development Assistance (ODA) programs/projects as regulated or agreed upon in international ODA treaties signed between competent Vietnamese and foreign authorities.
Granted a license by the Ministry of Foreign Affairs to operate information and press activities in Vietnam according to law.
Volunteers as defined in Clause 2, Article 3 of Decree 152/2020/ND-CP.
Students currently studying at schools or training institutions abroad who have internship agreements with agencies, organizations, or enterprises in Vietnam, or interns/apprentices on Vietnamese seagoing vessels.
Holding a service passport and working for state agencies, political organizations, or socio-political organizations.
Individuals responsible for establishing a commercial presence (e.g., setting up a representative office or foreign-invested company).
Confirmed by the Ministry of Education and Training to enter Vietnam for the following purposes:
- Teaching or researching.
- Acting as managers, executive directors, principals, or vice-principals of educational institutions proposed by foreign diplomatic missions or intergovernmental organizations established in Vietnam.
Head of a representative office, project, or chief officer responsible for the activities of an international organization or foreign non-governmental organization in Vietnam.
Entering Vietnam for less than 3 months to resolve complex technical or technological incidents arising that affect or are at risk of affecting production/business, and which cannot be resolved by Vietnamese experts or foreign experts currently in Vietnam.
Entering Vietnam to execute an international agreement signed by central or provincial agencies/organizations as per legal regulations.
Foreigners married to Vietnamese citizens and residing in Vietnam.

2.3 Group 3: Cases Not Requiring Exemption Confirmation (But Still Require Reporting)

In these specific scenarios, you do not need to apply for a Work Permit Exemption Confirmation, but the employer must still report the foreign worker’s information to the Ministry of Labor, Invalids and Social Affairs or the provincial Department of Labor, Invalids and Social Affairs where the foreign employee is expected to work:

Entering Vietnam for a period of less than 3 months to offer services.
Foreign lawyers who have been granted a Law Practice Certificate in Vietnam under the Law on Lawyers.
Owner or capital contributing member of a limited liability company with a capital contribution value of VND 3 billion or more.
Chairman of the Board of Directors or a member of the Board of Directors of a joint-stock company with a capital contribution value of VND 3 billion or more.
Entering Vietnam to work as a manager, executive director, expert, or technical worker for a period of less than 30 days and not exceeding 3 times within one year.
Relatives of members of foreign representative agencies in Vietnam, as specified in Point l, Clause 1, Article 2 of Decree 152/2020/ND-CP.

3. Re-issuing a Work Permit

Re-issuing a Work Permit applies when a foreign employee has already been granted a permit, but for certain reasons, needs to obtain a new document while the original is still valid. Specifically, a permit will be re-issued if the employee falls into one of the following situations:

The Work Permit is still valid but has been lost or misplaced.
The Work Permit is still valid but has been damaged during use.
The employee needs to change information such as their full name, nationality, passport number, passport issuance date, working location, or workplace as recorded on the valid Work Permit.

4. Extending a Work Permit

Extending a Work Permit is a mandatory procedure if a foreign employee wishes to continue working legally in Vietnam after their current permit is nearing expiration. The extension ensures the employee maintains the same job position, title, and employer as originally approved in the initial permit.

A Work Permit has a maximum validity period of 2 years. It can only be extended once, for a duration that does not exceed the validity period of the initially granted permit. Proactive planning for extension is crucial to avoid any lapse in legal status.

5. Penalties for Non-Compliance: What Happens If You Don’t Have a Work Permit?

A Work Permit is not just a mandatory legal procedure for employing foreign labor in Vietnam; it’s a critical legal basis for ensuring your business complies with labor management, immigration, and tax obligations. Failure to hold a valid Work Permit can expose both the enterprise and the foreign employee to severe legal risks, including administrative fines, forced termination of labor contracts, and even long-term repercussions on business operations and reputation.

Under Decree 12/2022/ND-CP, which regulates administrative penalties in the fields of labor, social insurance, and Vietnamese workers going abroad under contracts, the following penalties apply:

For the Foreign Employee:
- A fine ranging from VND 15,000,000 to VND 25,000,000 for foreign employees working in Vietnam without a Work Permit or without a confirmation of Work Permit exemption as regulated by law.
- Additional penalty: Expulsion from Vietnam.
For the Employer (User of Labor):
- A fine ranging from VND 30,000,000 to VND 75,000,000 for employers who utilize foreign workers in Vietnam without performing the Work Permit application procedures for those foreigners, with the exact fine depending on the number of infringing employees.

Important Note: According to Article 6, Clause 1 of Decree 12/2022/ND-CP, the fine levels mentioned above are for individuals. The fine for organizations is twice the fine level for individuals.

The employment of foreign workers in Vietnam demands strict adherence to Work Permit regulations from both the enterprise and the employee. Any missteps in documentation or procedures can lead to undesirable consequences, impacting business operations and the rights of all involved parties.

With a team of highly experienced lawyers and legal professionals, AZVLAW is committed to partnering with you throughout the entire process – from initial consultation, condition review, and document preparation, to acting as your representative in dealings with state authorities. We guarantee that our services are always:

Comprehensive and Accurate: Fully compliant with legal regulations.
Procedurally Correct: Adhering strictly to official sequences and steps.
Fast and Efficient: Executed quickly, saving you both cost and time.

Let AZVLAW be your trusted legal partner, helping you build a solid legal foundation for your foreign labor utilization in Vietnam. Contact AZVLAW today for comprehensive consultation and support!

Hotline: 090.2348.865
Email: cs@azvlaw.vn
Website: www.azvlaw.vn

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