Global Alerts

Vietnam – New Labor Rules

New labor rules will soon go into effect beginning February 15, 2021 regarding work permit exemptions, term of work permits, contracts, and reporting requirements.

Work Permit Exemption

Decree 152 now allows the below cases to be exempt from requiring a work permit:

  • Marriage to a Vietnamese citizens and living in Vietnam;
  • Managers, CEOs, skilled and expert workers working in Vietnam for less than 30 days per trip and no more than three trips per year;
  • Set up of a commercial presence of a foreign entity in Vietnam;
  • Owners or shareholding members of limited liability companies with a capital contribution of VND 3 billion or more; and
  • Chairpersons or members of the Board of Directors of joint-stock companies with a capital contribution of 3 billion VND or more. 

Term of Work Permit

Work permits in Vietnam may only be for a maximum of two years and can only renew once for a further two- year permit. If the foreign national is required to stay in Vietnam, they must submit a new work permit.

Reporting Requirements

The new labor rules request that employers withdraw work permits from foreign workers once the work permit is no longer valid within 15 days. An explanation letter must also be submitted in reference for the reason of withdrawal to the Labour Authority.

Employers must also report their foreign workers that travel to Vietnam, to work for less than 30 days per trip and no more than three trips per year, to the Labour Authorities with at least three days in advance.

Between July 5, 2021 and January 5, 2022, employers must submit a bi-annual report to the relevant Labour Authority of the status of foreign employees working for the Vietnamese company.

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