A Complete Guide to Work Permits in Vietnam for Foreign Employees

Work permits are essential for Vietnamese companies that want to employ and pay foreign employees legally. Understanding the requirements for a work permit in Vietnam is crucial for both employers and foreign workers to ensure compliance with local labor laws and regulations. This guide provides an overview of the updated procedures and required documentation, helping you navigate the process smoothly.

1. What is a Foreign Employee's Work Permit in Vietnam?

An official document issued by Vietnamese authorities that permits foreign workers to work lawfully in the nation is called a work permit.  When the person satisfies certain requirements specified by Vietnamese labor regulations, this permission is issued.

Foreign workers who possess a valid work permit are guaranteed legal recognition and the protection of their rights and interests in labor relations.

What is a foreign employee's work permit in Vietnam?

2. Why Obtain a Work Permit for Foreign Employees in Vietnam?

Except for individuals excluded by Decree 70/2023/ND-CP, all foreign workers in Vietnam are legally required to get a work permit before signing an employment contract or beginning any job.

Possessing a work permit has several advantages:

• It enables international workers to send money overseas and receive their paychecks in a Vietnamese bank account (in VND or another specified foreign currency).

• Businesses can lower their tax obligations by deducting salaries paid to foreign workers with work permits from their Corporate Income Tax (CIT) obligations.

• A work permit can be renewed once and is good for a maximum of two years.  It also reduces the need for frequent visa renewals by allowing the holder and their family to apply for a Temporary Resident Card (TRC).

3. Who is Eligible for a Work Permit in Vietnam?

Knowing who is eligible for a work visa is essential for both businesses and employees as Vietnam continues to draw in top talent from outside.  Work permits are tightly regulated by the Vietnamese government to guarantee adherence to labor regulations and safeguard the rights of both domestic and international employees.  A thorough explanation of who in Vietnam needs a work permit and which organizations are permitted to lawfully sponsor foreign workers can be found below.

Foreigners eligible for a work permit in Vietnam

3.1. Who Needs a Work Permit in Vietnam?

Eligibility for a Work Permit in Vietnam is clearly defined in Decree 152/2020/ND-CP. Foreign nationals entering Vietnam for the following purposes must obtain a work permit:

• Executing labor contracts

• Participating in intra-company transfers

• Fulfilling contracts or agreements in business, finance, banking, insurance, science and technology, culture, sports, education, vocational training, and healthcare

• Providing or offering services under contractual agreements

• Working for international or foreign non-governmental organizations licensed under Vietnamese law

• Holding managerial, executive, expert, or technical roles

• Engaging in bid contracts and projects in Vietnam

3.2. Who Can Sponsor a Work Permit for Foreign Employees?

Entities eligible to sponsor a work permit for foreign workers include:

• Enterprises operating under the Enterprise Law, Investment Law, or international treaties

• Contractors participating in bids and executing contracts

• Representative offices, branches, agencies, and organizations licensed by competent authorities

• Government agencies, political and socio-political organizations

• Foreign NGOs licensed under Vietnamese law

• Educational institutions and non-business organizations

• International organizations, foreign project offices, and businesses under government approval

• Law-related organizations operating in Vietnam

• Cooperatives, cooperative unions, and business households recognized by Vietnamese law

To work lawfully and with full labor rights in Vietnam, international workers must first get a work permit.  Employers must make sure local laws are followed and carefully evaluate if their overseas personnel fit the eligibility requirements.  Businesses and workers may easily manage the procedure while preserving their financial and legal security by knowing who is eligible for a work permit and which organizations can sponsor it.

4. What Types of Visas Does Vietnam Offer?

Vietnam offers a range of visa alternatives to suit various travel needs, such as transit, business, investment, study, and tourist.  Those who intend to reside, work, or travel to Vietnam must be aware of the appropriate visa type.  The primary visa categories are listed below:

• Business Visa (DN Visa): Issued for individuals visiting Vietnam for business-related activities such as attending meetings or signing contracts. It is valid for up to 12 months, but the holder can only work for a maximum of 90 days within that period unless they obtain a work visa.

• Diplomatic Visa (NG Visa): Reserved for foreign diplomats, government officials, and their family members.

• Investor Visa (DT Visa): This is designed for foreign investors entering Vietnam to invest in local businesses.

• Student or Internship Visa (DH Visa): This is granted to individuals enrolling in educational institutions or participating in internships in Vietnam.

• Tourist Visa: A 30-day visa for those traveling to Vietnam for recreational and tourism purposes.

• Transit Visa: Issued to travelers passing through Vietnam who plan to leave the airport's transit area during their layover.

Selecting the appropriate visa guarantees adherence to Vietnamese immigration regulations and avoids any legal issues when visiting the country.  Getting the right visa and work permit is crucial for both legal employment and long-term residency in Vietnam if you intend to work there.

5. Documentation Needed for the Extension of Work Permits

In compliance with the most recent laws, applicants must prepare and submit the following papers to extend a work permit in Vietnam:

• The work permit extension application form needs to be correctly filled out and signed.

• Job Position Approval Letter: Evidence that hiring foreign workers is acceptable.

• The original work permit is the one that is still in effect and needs to be extended.

• Certified Passport Copy: Employer-certified copies are now acceptable.

• A notarized copy of the company's registration is called a business registration certificate.

• Recent Pictures: Within the previous six months, two passport-sized (4 cm x 6 cm) pictures were taken.

• Health Check Report: Provided within the past 12 months by a certified hospital in Vietnam.

For foreign workers in Vietnam, these revised rules are intended to streamline the system, cut down on paperwork, and guarantee a more effective extension procedure.

6. Detailed Procedure and Timelines for Work Permit Extension

In Vietnam, extending a work permit requires following a set procedure to guarantee adherence to regional labor laws. 

Detailed Procedure and Timelines for Work Permit Extension in Vietnam

Here is a detailed explanation:

•  Preparation: Compile all necessary paperwork using the most recent checklist.

•  Submission: On behalf of the foreign worker, the employer sends the application to the Department of Labor, Invalids, and Social Affairs (DOLISA).

•  Processing: If all papers are in order, the review procedure normally takes 10 to 15 working days.  It is best to apply at least 30 days prior to the existing permit expiring in order to prevent any inconveniences.

•  Issue: Following approval, DOLISA issues an extended work permit, which the expatriate or their employer may pick up.

By understanding these steps and planning ahead, foreign employees can seamlessly continue their employment in Vietnam without legal interruptions. 

7. Fees for work permits

The charge will be governed differently depending on where the processes for issuing a work permit to an employee are carried out (per Circular 250/2016/TT-BTC).

For instance, the cost to apply for a new work permit in Hanoi is VND 400,000, but the same category in Ho Chi Minh City is VND 600,000.  Currently, VND 1,000,000 is the highest charge.  Depending on local laws, this cost may occasionally change.

The cost of filing for a work permit should be covered by the employer; foreign nationals are not required to pay this fee.

8. Frequent Questions and Answers

8.1. Can I Change My Employer Once My Work Permit is Extended?

No, your present company and employment position are linked to an extended work visa.  A new employment position permission letter and accompanying documentation from your new employer are among the updated papers you must present when applying for a new work permit if you want to change jobs.

8.2. What Happens if My Work Permit Expires Before I Secure an Extension?

You can be subject to fines or a temporary job suspension if your work permit expires before it is renewed.  It can also make it more difficult for you to get permits in Vietnam in the future.  It is advised to apply for an extension at least 30 days before expiration to account for processing time and any potential delays and avoid difficulties.

8.3. How Long is The Extension Period For a Work Permit in Vietnam?

Depending on the conditions of your job contract and the consent of Vietnamese authorities, a work visa in Vietnam can often be renewed for a maximum of two years.  Your employment function, employer status, and local laws at the time of renewal are some of the variables that affect the ultimate length.

Conclusion

Recent law changes have streamlined Vietnam's work permit extension system, making it more effective and transparent for foreign workers.  Expatriates may carry on with their business in Vietnam without any problems if they prepare the needed paperwork, follow the deadlines, and keep up with the most recent rules.  Although this guide offers a thorough summary, professional advice guarantees adherence to changing legal standards and a simple extension procedure.