The work permit system is a crucial legal requirement for foreign workers in Vietnam. It ensures compliance with labor laws, regulates foreign labor in the country, and protects both the foreign employees and the organizations that employ them. Understanding the cases that require a work permit and the exemptions is an essential step for employers and foreign workers to operate legally and efficiently in Vietnam.
- What is a Work Permit?
A work permit is an official document that contains detailed information about a foreign worker, including their full name, passport number, date of birth, nationality, name and address of the employing organization, job position, and working duration. A work permit allows foreign workers to legally work in Vietnam.
Currently, the validity period of a work permit does not exceed 2 years. If foreign workers wish to continue working in Vietnam beyond this period, they are required to apply for a work permit extension or a new work permit.
- Who Needs a Work Permit?
According to Clause 1, Article 2 of Decree 152/2020/ND-CP, foreign workers in Vietnam are required to obtain a work permit under the following circumstances:
- Working under a labor contract:
This is the most common form, where foreign workers sign a labor contract with the employers. - Internal transfer within an enterprise:
This form is common in foreign-invested enterprises in Vietnam. The parent company (the investor of the foreign-invested company in Vietnam) transfers employees from abroad to work at its subsidiary in Vietnam - Performing contracts or agreements related to economic, commercial, financial, banking, insurance, technical science, culture, sports, education, vocational training, and healthcare.
- Service providers under a contract:
Foreign workers providing services based on a contractual agreement. - Service salespersons:
Foreign workers who do not reside in Vietnam and do not receive any payments from sources in Vietnam but participate in activities related to representing a service provider to negotiate the sale of services. They are not allowed to directly sell or participate in the service delivery process. - Working for foreign non-governmental organizations (NGOs) or international organizations in Vietnam:
This applies to foreign workers employed by NGOs or international organizations permitted to operate in Vietnam. These organizations, which do not operate for profit, include notable NGOs such as:
- World Vision International (WVI/USA)
- The Clinton Health Access Initiative (CHAI/USA)
- Fred Hollow Foundation (FHF/Australia)
- Fredrich-Ebert-Stiftung (FES/Germany)
- Giving It Back To Kids (GIBTK/USA)
- Good Neighbors International (GNI/South Korea)
- The VinaCapital Foundation (VCF/USA)
- Volunteers:
Individuals working voluntarily without salary to fulfill international agreements of which Vietnam is a member, with confirmation from foreign diplomatic missions or international organizations in Vietnam. - Persons responsible for establishing a commercial presence:
Foreign workers responsible for setting up a commercial presence in Vietnam. - Managers, executives, experts, and technical workers:
Qualified foreign personnel working in managerial, executive, or technical positions. - Participation in projects or bidding packages in Vietnam.
- Foreign Workers Exempt from Work Permits
Foreign workers who are exempt from work permits fall under six cases specified in Article 154 of the Labor Code and 14 cases under Article 7 of Decree 152/2020/ND-CP. These cases include:
- Foreigners who are owners or members contributing capital to limited liability companies with a capital contribution value of 3 billion VND or more.
- Foreigners who are Chairpersons or members of the Board of Directors of joint-stock companies with a capital contribution value of 3 billion VND or more.
- Foreigners transferred within enterprises operating in 11 service sectors as committed by Vietnam to the WTO, including business, information, construction, distribution, education, environment, finance, healthcare, tourism, culture, entertainment, and transportation.
- Foreigners entering Vietnam to provide consulting services or perform other tasks related to research, construction, evaluation, monitoring, management, or implementation of programs or projects using official development assistance (ODA) as per agreements or treaties signed between Vietnam and other countries.
- Foreigners granted press or information activity permits by the Ministry of Foreign Affairs under Vietnamese law.
- Foreigners assigned by foreign authorities or organizations to teach or conduct research at international schools under the management of foreign diplomatic missions or the United Nations; or at institutions established under agreements to which Vietnam is a party.
- Volunteers working without salary to fulfill international agreements of which Vietnam is a member, with confirmation from foreign diplomatic missions or international organizations in Vietnam.
- Foreigners working as managers, executives, experts, or technical workers with a working duration of under 30 days and no more than three times in a year.
- Foreigners entering Vietnam under international agreements signed by central or provincial-level agencies or organizations.
- Foreign students studying at foreign institutions who have agreements to intern at agencies, organizations, or businesses in Vietnam; or foreign trainees working on Vietnamese ships.
- Relatives of members of foreign representative agencies in Vietnam are allowed to work under international agreements to which Vietnam is a member.
- Foreigners holding diplomatic passports working for state agencies, political organizations, or socio-political organizations.
- Foreigners responsible for establishing a commercial presence.
- Foreigners certified by the Ministry of Education and Training to teach or conduct research in Vietnam.
- Foreigners heading representative offices or projects, or taking primary responsibility for the operations of international organizations or NGOs in Vietnam.
- Foreigners entering Vietnam for less than three months to sell services.
- Foreigners entering Vietnam for less than three months to resolve technical or technological issues that affect or may affect production or business operations and cannot be handled by Vietnamese or foreign experts in Vietnam.
- Foreign lawyers licensed to practice law in Vietnam under the provisions of the Law on Lawyers.
- Other cases as specified by international agreements to which Vietnam is a member.
- Foreigners married to Vietnamese citizens and residing in Vietnam.
In conclusion, understanding the requirements for obtaining a work permit or qualifying for an exemption is essential for foreign workers and their employers in Vietnam. Proper compliance with these regulations not only ensures legal operations but also fosters a positive working environment for foreign workers contributing to Vietnam’s development.
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TLA Law is a leading law firm with a team of highly experienced lawyers specializing in criminal, civil, corporate, marriage and family law, and more. We are committed to providing comprehensive legal support and answering all your legal questions. If you have any further questions, please do not hesitate to contact us.
1. Lawyer Vu Thi Phuong Thanh, Manager of TLA Law LLC, Ha Noi Bar Association
Email: vtpthanh@tlalaw.vn
2. Lawyer Tran My Le, Chairman of the Members’ Council, Ha Noi Bar Association
Email: tmle@tlalaw.vn.
Dinh Phuong Thao