NECESSARY LEGAL NOTES FOR FOREIGNERS INVESTING AND WORKING IN VIETNAM

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Submit:

Nowadays, the demand for using high-quality foreign labor resources for specific positions requiring experience in Vietnamese enterprises is increasing, especially for foreign-invested enterprises. However, many enterprises have not yet understood the regulations on using foreign workers in Vietnam. Therefore, OTIS LAWYERS would like to provide the following article to supply necessary legal notes for foreigners investing and working in Vietnam.

REQUIREMENTS FOR FOREIGNERS TO WORK IN VIETNAM

According to the provisions of Article 151 of the Labor Code 2019, requirements for foreigners to work in Vietnam

  • is at least 18 years of age and have full legal capacity;
  • has qualifications, occupational skills, and practical experience, and adequate health as prescribed by the Minister of Health;
  • is not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under his/her home country’s law or Vietnam’s law;
  • has a work permit granted by a competent authority of Vietnam, except otherwise exempted.

APPLY FOR WORK PERMIT 

Entities who issuance of work permits 

Workers who are foreign nationals moving to Vietnam for employment for the following purposes will be eligible to apply for a new work permit according to the provisions of Clause 1, Article 2, Decree No. 152/2020/ND-CP: 

  • performing employment contracts; 
  • performing intra-company transfer program;
  • performing contracts or agreements on business, trade, finance, banking, insurance, science and technology, culture, sports, education, vocational training, and health;
  • providing services under contracts;
  • offering services;
  • taking charge of establishing the commercial presence;
  • working as managers, executives, experts, and technical workers;
  • performing packages or projects in Vietnam; or
  • accompanying members of foreign representative bodies in Vietnam who are authorized to work in Vietnam under an international treaty to which the Socialist Republic of Vietnam is a signatory as their relatives.

Procedures for issuance of a work permit

Step 1

The employer (except the contractor) shall determine the demand for foreign workers for every job position for which Vietnamese workers are underqualified. After sending a corresponding report to the Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of a province or central-affiliated city at least 30 days before the date on which foreign workers are expected to be employed. 

Step 2

The applicant shall submit an application for a 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 at least 15 working days before the day on which a foreign worker starts 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 to the foreign worker. If the application is rejected, a written explanation is required.

The validity period of a work permits

The validity period of a work permit shall coincide with any period/duration below but not exceeding 2 years:

  • Validity period of the employment contract to be signed.
  • Duration of the foreign worker’s assignment in Vietnam.
  • Duration of the contract or agreement concluded between Vietnamese and foreign partners.
  • Duration of the service contract or agreement concluded between Vietnamese and foreign partners.
  • Duration determined in the document issued by the service provider to send the foreign worker to Vietnam to negotiate the service provision.
  • Validity period in the operation license of the agency, organization, or enterprise.
  • Duration determined in the document issued by the service provider to send the foreign worker to Vietnam to establish a commercial presence.
  • Duration stated in a document proving the foreign worker’s eligibility to participate in the operation of a foreign company that has established its commercial presence in Vietnam.
  • Duration stated in the acceptance of employment of foreign workers unless a report on demand for foreign workers as specified in point b clause 1 Article 4 hereof is not required.

Administrative sanction related to work permits

According to Article 32, Decree No. 12/2022/ND-CP, violations against regulations on foreigners working in Vietnam are as follows:

  • A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed upon an employer for a commission of one of the following violations: Failing to submit the original copy or certified true copy of the signed employment contract, after the foreign employee has been issued with the work permit or has his/her work permit extended, at the request of the competent authority that has issued or extended such work permit in case that foreign employee works under an employment contract.
  • A fine ranging from VND 5.000.000 to VND 10.000.000 per employee but not exceeding VND 75.000.000 shall be imposed upon an employer for hiring a foreign employee against his/her work permit or certification of eligibility for work permit exemption unless otherwise prescribed by law.
  • A fine ranging from VND 15.000.000 to VND 25.000.000 shall be imposed upon a foreigner working in Vietnam for a commission of one of the following violations:
  • Failing to obtain a work permit or certification of eligibility for work permit exemption when working in Vietnam as prescribed by law;
  • Using an expired work permit or certification of eligibility for a work permit exemption.
  • The following fines shall be imposed upon an employer for hiring a foreign employee who does not have a work permit or certification of eligibility for work permit exemption or who uses an expired one to work in Vietnam:
  • A fine ranging from VND 30.000.000 to VND 45.000.000 shall be imposed if the violation involves 01 - 10 employees;
  • A fine ranging from VND 45.000.000 to VND 60.000.000 shall be imposed if the violation involves 11 - 20 employees;
  • A fine ranging from VND 60.000.000 to VND 75.000.000 shall be imposed if the violation involves 21 employees or more.

APPLY FOR A VISA

Conditions for visa issuance (Visa for foreigners in Vietnam)

Article 10 of the Law on foreigner’s entry into, exit from, transit through, and residence in Vietnam stipulates the conditions for being granted a visa, including

  • Has a passport or laissez-passer
  • Invited or sponsored by agencies, organizations, or individuals in Vietnam
  • Not suspended from entry
  • Proof of entry purposes must be provided when investor/worker applying for a visa

Visa duration

  • The duration of DN1, DN2, do not exceed 12 months
  • The duration of LD1, and LD2 visas do not exceed 2 years
  • The duration of DT1, and DT2 visas do not exceed 5 years
  • The duration of a DT3 visa does not exceed 3 years

APPLY FOR TEMPORARY RESIDENCE CARD

Cases in which temporary residence cards are issued: Artice 36, Law No.47/2014/QH13 dated June 16, 2014, entry, exit, transit, and residence of foreigners in Vietnam stipulate foreigners issued with LV1, /

Duration of temporary residence cards: 

  • The duration of a temporary residence card is at least 30 days shorter than the remaining duration of the passport.
  • The duration of a NG3, LV1, LV2, ĐT or DH temporary residence card shall not exceed 05 years.
  • The duration of a NN1, NN2, TT temporary residence card shall not exceed 03 years.
  • The duration of a LĐ or PV1 temporary residence card shall not exceed 02 years.
  • Expired temporary residence cards may be extended.

 

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