Legal Requirements for Foreigners Working at Vietnamese Private Companies

More and more Vietnamese private companies hire foreign nationals as managers, experts or engineers — and quite a few foreigners only discover after starting work that they do not yet have a work permit. This article summarises the conditions, the procedure and the common mistakes under the latest rules on foreign workers in Vietnam.

Legal framework

• The Labour Code 2019 (Law No. 45/2019/QH14), the section on foreign workers (Articles 151–157);
• Decree 219/2025/ND-CP of 7 August 2025 on foreign workers in Vietnam, effective on signing, which replaced Decree 152/2020/ND-CP and Decree 70/2023/ND-CP;
• The Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam (Law No. 47/2014/QH13, amended in 2019 and 2023) for visas and temporary residence cards;
• The Law on Social Insurance 2024 and personal income tax legislation.

The basic rule: a foreign employee must hold a work permit, or a written confirmation of exemption from the work permit requirement, before starting work. Vietnamese private companies and foreign-invested companies are subject to the same rules.

Conditions for the employee and the employer

Under Article 151 of the Labour Code, the foreign worker must be at least 18 with full civil capacity, have the professional or technical qualifications, skills and work experience required, be in good health, and must not be serving a criminal sentence, have an unexpunged criminal record or be subject to criminal prosecution under Vietnamese or foreign law.

Under Article 152, an employer may only recruit foreigners as managers, executive directors, experts or technical workers for positions that Vietnamese workers cannot yet fill. A key change under Decree 219/2025: the employer's report explaining its need for foreign labour is now integrated into the work permit application, instead of being a separate prior step as under Decree 152/2020.

When no work permit is required

Article 154 of the Labour Code and Decree 219/2025 list the cases exempt from the work permit requirement, for example: owners or capital-contributing members, and board members, whose capital contribution reaches the prescribed level (VND 3 billion under Decree 219); foreigners married to Vietnamese citizens and living in Vietnam; foreign lawyers licensed by the Ministry of Justice; and certain short-term assignments specified by law. Decree 219 also widened the exemptions for experts in fields such as finance, science, technology, innovation and digital transformation.

Note that "exempt" does not mean "nothing to do". In most cases the employer must still obtain a written confirmation of exemption, which is then used to apply for the visa or temporary residence card.

Work permit procedure

1. Prepare the dossier (see below) — usually the slowest step because the documents come from abroad.
2. File the dossier with the competent authority. Under Decree 219/2025, the provincial People's Committee where the employee will work issues, extends and revokes work permits (and may delegate this to a specialised agency); filing can be done online through the National Public Service Portal.
3. Receive the result: within 10 working days of receiving a complete and valid dossier, the authority approves the need for foreign labour and issues the permit (Article 22(3) of Decree 219).
4. Sign a written labour contract; its term may not exceed the term of the work permit (Article 151(2) of the Labour Code).
5. Obtain the visa or temporary residence card with the LD1 symbol (exempt) or LD2 symbol (work permit holder); a work-related temporary residence card is valid for up to 2 years.

A work permit is valid for a maximum of 2 years and may be extended once, for up to 2 years (Article 155 of the Labour Code). After the extended term, a new permit must be applied for.

Documents to prepare

• The employer's application (including the explanation of the need for foreign labour);
• A health certificate as prescribed;
• A criminal record certificate, or confirmation of no criminal record, issued no more than 6 months earlier;
• Degrees, certificates and evidence of experience relevant to the position;
• A valid passport and photographs to the required specification.

Documents issued abroad must be consularly legalised, or — since 11 September 2026, when the Apostille Convention entered into force for Vietnam — carry an apostille if the issuing country applies the Convention with Vietnam (it does not yet apply with Germany, Austria or the Czech Republic). Even with an apostille, the documents must be translated into Vietnamese with a notarised or certified translation. Some documents are exempt from legalisation under international treaties.

After the permit: obligations that are often forgotten

• Social insurance: under the Law on Social Insurance 2024 (effective 1 July 2025), foreign employees working under a fixed-term labour contract of 12 months or more are subject to compulsory social insurance, except in certain cases such as intra-company transferees or those who have reached retirement age.
• Personal income tax: tax residents (present 183 days or more in the year, or with a habitual residence in Vietnam) are taxed at progressive rates on worldwide income; non-residents pay a flat 20% on Vietnam-sourced employment income. The Law on Personal Income Tax No. 109/2025/QH15, effective 1 July 2026, changes the rate bands and deductions.
• Tracking changes: a change of position, workplace or employer may require a new permit. Employers should keep a calendar of work permit and residence card expiry dates.

Risks of getting it wrong

Employing a foreigner without a valid work permit is an administrative violation: the employer is fined under Decree 12/2022/ND-CP, and the worker may be fined and deported. The indirect risks are significant too: the labour contract may be treated as invalid, salary costs may be disallowed for corporate income tax, and later residence card renewals become harder.

Practical advice

Start collecting foreign documents at least two to three months before the intended start date — criminal record certificates have a short validity and authentication abroad is often slower than expected. The job description in the dossier must match the degrees and experience provided; mismatches are a common reason for refusal. For exemptions, changes of position or urgent start dates, speak to a lawyer before filing.

Quick Q&A

How long does it take to obtain a work permit?

Under Decree 219/2025/ND-CP, the authority decides within 10 working days of receiving a complete and valid dossier. Gathering and legalising (or apostilling) documents abroad usually takes much longer.

How long is a work permit valid?

Up to 2 years, extendable once for up to 2 years under Article 155 of the Labour Code 2019. The labour contract may not run longer than the permit.

Does a foreign investor in the company need a work permit?

Owners, capital-contributing members or board members whose contribution reaches the prescribed level (VND 3 billion under Decree 219) are exempt, but usually still need a written confirmation of exemption for their visa or residence card.

Can the company handle the procedure itself?

Yes, the employer may file the dossier itself. For exemptions, changes of position or employer, or tight start dates, specialist advice helps avoid refusals and delays.