The international integration process is currently creating a flow of labor migration between countries worldwide, and Vietnam is no exception. As a developing nation, Vietnam has become an attractive destination for many foreign workers. Subsequently, to ensure legal compliance, understanding the complexity of obtaining and maintaining a work permit in Vietnam is crucial for foreign employees.
This article provides some legal issues that foreign workers need to be aware of to ensure compliance with the laws and regulations while working in Vietnam.
1. Conditions for foreign workers to come to Vietnam to work
Foreign workers in Vietnam are foreign nationals and need to meet all of the following conditions:
- Be 18 years of age or older and have full civil capacity;
- Have professional qualifications, technical skills, expertise, work experience, and meet the health requirements as prescribed by the Minister of Health;
- Not be serving a sentence or still have a criminal record that has not been expunged, or be under criminal prosecution according to the laws of the foreign country or Vietnam;
- Hold a work permit issued by the competent state authority of Vietnam, except for cases specified in Article 154 of the 2019 Labor Code.
Requirements for hiring foreign workers
In addition, the conditions for recruiting and employing foreign workers in Vietnam are also clearly regulated for enterprises, agencies, organizations, individuals, and contractors, etc. (hereinafter referred to as “Employers”). Based on these regulations, it permits employers to recruit foreign workers only for managerial, executive, expert, and technical positions. These positions must require skills that Vietnamese workers cannot meet according to production and business needs.
Furthermore, before employing foreign workers, Employers (except for contractors) must justify the labor demand and obtain written approval from the competent state agency. As for Employer contractors, they must specify the specific job positions, professional qualifications, technical skills, work experience, and the necessary working time for foreign workers to meet the requirements. Additionally, they also need to obtain written approval from the competent state agency.
2. Cases of foreign workers working in Vietnam are not eligible for work permits
According to the provisions of the labor law, there will be some cases where foreign workers are not eligible for a work permit, specifically as follows:
- Being the owner or capital contributor of a limited liability company with the capital contribution value as prescribed by law; or
- Being the chairman or member of the board of directors of a joint-stock company with capital contribution value as prescribed by law; or
- Being the head of a representative office or project or taking main responsibility for the operation of international organizations or foreign non-governmental organizations in Vietnam; or
- Entering Vietnam with a term of less than 3 months to make a service offering; or
- Entering Vietnam for less than 3 months to handle problems, technical situations, complex technologies that arise, affecting or potentially affecting production and business that Vietnamese experts and foreign experts currently in Vietnam cannot handle; or
- Being a foreign lawyer who has been granted a license to practice law in Vietnam in accordance with the Law on Lawyers; or
- Cases under the provisions of international treaties to which Vietnam is a contracting party; or
- Foreigners marrying Vietnamese and living in Vietnamese territory.
3. Regulations related to work permits of foreign workers
According to current legal regulations, the maximum validity period of a work permit in Vietnam is 2 years. If an extension is desired, it can only be granted once, with a maximum extension period of 2 years.
Both employers and foreign workers need to be aware of situations where the work permit becomes invalid, such as:
- Expiration of the work permit.
- Termination of the labor contract.
- The content of the labor contract does not match the content of the issued work permit.
- Contracts in the fields that are the basis for the expiration or termination of the work permit;
- There is a written notice from the foreign party to stop sending foreign workers to work in Vietnam;
- Enterprises, organizations, partners on the Vietnamese side or foreign organizations in Vietnam employing foreigners cease to operate;
- Revocation of the work permit.
Notes
Importantly, it is essential to note that the specific regulations regarding the revocation of the work permits are stated in Article 20 of Decree No. 152/2020/NĐ-CP. Authorities will revoke a work permit upon its expiration as stipulated by law. The employer or the foreign worker may have their work permit revoked if they fail to comply with the law. Authorities will revoke a foreign worker’s work permit if they violate Vietnamese law while employed in the country, affecting national security, public order, and social safety.
In addition, when Employers have a demand to recruit foreign workers, they must also follow other procedures such as applying for temporary residence cards, declaring personal income tax, and contributing to social insurance and health insurance, etc. as required by the law for foreign workers.
Indeed, the current legal framework for managing foreign workers in Vietnam is relatively clear. Specifically, this framework clearly details in legal documents, such as the Labor Code, Law on entry, exit, transit and residence of foreigners in Vietnam, etc. However, in practice, there may still exist certain limitations and issues that in need for resolve. To overcome these limitations, it is necessary to continue improving the procedures and regulations related to foreign workers and to keep Employers and foreign workers updated with any new legal provisions.
A thorough understanding of the legal framework is crucial to ensure compliance and avoid potential pitfalls. PLF Law Firm offers legal support to businesses seeking to hire foreign talent in Vietnam. Contact PLF Law Firm today via email at inquiry@plf.vn or +84913 902 906 or Zalo | Viber | WhatsApp.