A work permit is one of the key legal requirements for foreign workers seeking employment in Vietnam. This regulation not only ensures the lawful rights of foreign employees but also reflects Vietnam’s commitment to complying with international labor standards.
In this article, DNP Viet Nam Law Firm provides information on work permits, exemption cases, validity periods, and relevant requirements for foreign investors.
1. What is a Work Permit?
A Work Permit is a legal document that allows a foreign national to work lawfully in Vietnam. Although not specifically defined by law, a Work Permit is required for most foreign workers before starting employment in Vietnam.
Competent authorities for issuing work permits:
- Ministry of Labor, War Invalids and Social Affairs.
- Department of Labor, War Invalids and Social Affairs.
(Refer to Clause 2, Article 4 of Decree No. 152/2020/ND-CP as amended by Clause 2, Article 1 of Decree No. 70/2023/ND-CP.)
2. Are Foreign Investors Required to Obtain a Work Permit?
Foreign investors who are individuals must meet the conditions set out in Clause 1, Article 151 of the 2019 Labor Code to be eligible to work in Vietnam. Under Point d of this Clause, they must obtain a work permit issued by a competent authority, unless they fall under the exempted cases provided in Article 154 of the Code.
Hence, foreign investors are generally required to obtain a work permit unless they are specifically exempted under applicable laws.
Image designed by DNP Viet Nam Law Firm
3. Exemption from Work Permits: Current Cases
According to Article 154 of the 2019 Labor Code, foreign nationals working in Vietnam are exempt from obtaining a work permit in the following cases:
- Owners or capital-contributing members of a limited liability company (LLC), who meet the capital contribution threshold stipulated by the Government.
- Chairpersons or members of the Board of Directors of a joint-stock company who meet the capital contribution threshold.
- Heads of representative offices, project directors, or those primarily responsible for the operation of international organizations or foreign non-governmental organizations in Vietnam.
- Individuals entering Vietnam for less than 3 months to offer services.
- Foreign lawyers licensed to practice in Vietnam under the Law on Lawyers.
- Individuals exempted under international treaties to which Vietnam is a party.
- Foreigners married to Vietnamese citizens and residing in Vietnam.
- Other cases as prescribed by the Government.
In addition, Article 7 of Decree No. 152/2020/ND-CP (as amended by Decree No. 70/2023/ND-CP) provides further guidance on exemptions, including:
- Owners or capital-contributing members of an LLC with a capital contribution of VND 3 billion or more.
- Chairpersons or members of the Board of Directors of a joint-stock company with a capital contribution of VND 3 billion or more.
Note: Individuals in the above categories must still complete procedures to obtain confirmation or report their exemption status by current legal regulations.
4. Validity of Work Permits for Foreign Investors
The maximum validity of a work permit for foreign investors is 2 years, and it may be renewed once for a maximum period of 2 years.
(Based on Article 155 of the 2019 Labor Code)
5. Consequences of Employing Foreign Nationals Without a Valid Work Permit
Employers who hire foreign nationals without a valid work permit, or without a certificate confirming exemption status, or who continue employment after the permit has expired, shall face administrative penalties as follows:
For individuals:
- VND 30 million – 45 million for violations involving 1 to 10 workers.
- VND 45 million – 60 million for violations involving 11 to 20 workers.
- VND 60 million – 75 million for violations involving 21 or more workers.
For organizations: The fine is double the amount applicable to individuals.
(Based on Clause 4, Article 32 and Clause 1, Article 6 of Decree No. 12/2022/ND-CP)
Therefore, depending on the number of foreign workers involved and whether the violating party is an individual or organization, the administrative fines may range from VND 30 million to VND 150 million.
——————————————————
DNP VIET NAM LAW FIRM
Contact:
🏢 Address: 5th Floor, 52 Nguyen Thi Nhung Street, Van Phuc estate, Hiep Binh Phuoc, Thu Duc City, Ho Chi Minh City, Viet Nam.
📩 Email: info@dnp-law.com.
📞 Hotline: 0987 290 273 (Đinh Văn Tuấn Lawyer).
Website: https://www.dnp-law.com/
