Regulations on work permits for foreigners in Vietnam

Vietnam is attracting more foreign workers, which brings benefits but also potential problems. Effective management of foreign workers is crucial. A Work Permit for Foreigners is essential, confirming their rights and obligations. Companies must apply for a work permit before hiring a foreign worker. The worker must meet certain conditions, including being at least 18 years old, having the required qualifications and health, and holding a work permit. The process involves determining the demand, submitting an application, and signing a labor contract. Both parties must comply with tax and insurance regulations. For more information and assistance, contact the experts. Legal grounds include Decrees 152-2020-NDCP and 70-2023-NDCP, and Labor Code No. 45-2019-QH14. Summary. In the context of increasingly deep international integration, Vietnam is attracting more and more foreign workers to work. This is an inevitable trend that brings many benefits to the country's socio-economic development. However, besides the benefits, attracting foreign workers also has some potential problems. Therefore, effectively managing foreign workers is extremely important. Work Permit for Foreigners is an important document, issued by the competent authority. This is a document confirming the rights and labor obligations of foreigners in Vietnam. At the same time, this license is also part of the process of legalizing the employment of foreigners in Vietnam, ensuring compliance with labor laws and protecting the rights of both foreign workers and the local labor community. Therefore, before the company wants to sign a labor contract with a foreigner, the company must submit an application for a work permit for the foreign worker, which is issued by the Ministry or the Department of Labor, War Invalids and Social Affairs, except for cases that do not require a work permit according to regulations. Details. Under Article 151 of the 2019 Labor Code, a foreign worker working in Vietnam must meet the following conditions. Be at least 18 years of age and have full legal capacity, have qualifications, occupational skills, practical experience and adequate health as prescribed by the Minister of Health, does not serve a sentence, does not have an unspent conviction, is not undergoing criminal prosecution under his or her home country's law or Vietnam's law, have a work permit granted by a competent authority in Vietnam, except in cases where work permits are exempted according to regulations. Pursuant to Decree 152-2020-NDCP, Decree 70-2023-NDCP regulating the issuance of work permits. Step 1. Determination of Demand for Foreign Workers. At least 15 days before the date on which foreign workers are expected to be employed, the employer, except contractor, shall determine the demand for foreign workers for every job position for which Vietnamese workers are underqualified and send an explanation report to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of Province where the foreign workers are expected to work. The Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs shall issue a document specifying acceptable and unacceptable job positions for foreign workers within 10 working days after receiving an explanation report on demand for foreign workers. Step 2. At least 15 working days before the day on which a foreign worker starts to work, the applicant shall submit an application for work permit to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province where he, she is expected to work. Step 3. Within 5 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs of the province where the foreign worker is expected to work shall issue a work permit. If the application is rejected, a written explanation is required. Step 4. After the foreign worker is granted a work permit, the employer and the foreign worker must sign a written labor contract according to the provisions of Vietnamese labor law. The employer must send the signed labor contract upon request to the competent authority that issued the work permit. From the moment of signing a labor contract and starting to earn income in Vietnam, both the company and the foreign employee must strictly comply with the legal regulations on personal income tax, PIT, declaration and participate in compulsory social insurance, CSI. This is not only a legal obligation but also a commitment to fairness and protecting the rights of both parties in the labor relationship. Above are some basic regulations of work permits for foreign employees. If you need any assistance with these or any other matters relevant for foreign employees in Vietnam, our experts are ready to work with your company to ensure you understand how the above will apply to your specific situation. Contact our teams for expert support and further information on managing labor and HR compliance in Vietnam. Do T. Thursday Nguyen, Head of Payroll and HR Services. Nguyen.do at tpm.com.vn Legal Grounds Decree 152-2020-NDCP dated December 30, 2020. Decree 70-2023-NDCP dated September 18, 2023. Labor Code No. 45-2019-QH14 dated November 20, 2019.