Draft Decree on Regulation Regarding Foreign Employees Working in Vietnam

The Ministry of Home Affairs (MOHA) has presented to the Government of Vietnam a draft decree intended to replace Decree No. 152/2020/ND-CP, as amended by Decree No. 70/2023/ND-CP (Decree 152), which currently regulates the employment of foreign employees in Vietnam (the Draft Decree). The proposed changes under the Draft Decree aim to loosen compliance requirements and clarify existing regulations, which can help attract foreign investors and experts with high expertise and skills, thereby facilitating the employment of skilled workers and supporting economic development. Below are some notable changes according to the Draft Decree.

1. Clarification of definitions   
The Draft Decree clarifies the definitions of foreign employees to whom the decree applies. Specifically, under the provision regarding the form of foreign workers working in Vietnam that the Draft Decree regulates, the terms “Managers, executives, experts, and technical workers” are removed because this can be misunderstood as a job position, which causes difficulty in determining the components of the application dossier proving the form of work.[1] It is replaced with the form of foreign employees who are “transferred from foreign agencies, organisations, and enterprises to Vietnam to work” for clarity.[2]

2. Change in competent authority

Following the merger of the Ministry of Labour, Invalids and Social Affairs (MOLISA)      with MOHA, MOHA is now the state agency responsible for assisting the Government in state management of labour-related matters. In this context, the Department of Home Affairs (DOHA) shall oversee the issuance, reissuance, extension, and revocation of work permits, as well as certifications of work permit exemption, except for cases of foreign employees working in agencies, organisations, or enterprises established by the Government, the Prime Minister, ministries, ministerial-level agencies, or Government-attached bodies that are under the authority of MOHA or the Provincial People’s Committee of the province where such agency, organization, or enterprise locates.[3]

3. Removal of requirements for prior approval of foreign labour demand           
Under the Draft Decree, employers are no longer required to obtain a separate approval for foreign labour demand. Accordingly, this procedure is proposed to be combined with the application process regarding the granting of work permits.[4]  In case the foreign employee is subject to cases that do not require the application of a work permit, the employer is only required to obtain a work permit exemption certificate, without having to obtain prior approval for foreign labour demand.

This change is expected to shorten the total time required to obtain a work permit to approximately 10 working days from the date a valid application is submitted.[5] It shall also reduce the cost of following administrative procedures for employers and foreign employees.

4. New regulations on the new work permit application    
The Draft Decree supplements regulations to allow foreign workers, who have been granted a work permit and have had it extended once but need to continue working in the same job position and title stated in the work permit for the same employer, to apply for a new work permit to continue to work in Vietnam.[6] Under the Draft Decree, this policy is applied to foreign employees in general, instead of being limited to only experts and technical workers in accordance with current regulations.[7]

5. Extension of the work permit exemption certificate

Under current regulations, the term of a work permit exemption for foreign employees is up to 2 years. Upon expiry, employers can apply for a reissuance of the certificate of work permit exemption.[8] However, under the Draft Decree, employers can request an extension of the certificate instead.[9] This is a practical change that allows employers to avoid having to submit an application dossier for a new work permit exemption certificate for foreign employees who still qualify for exemption and require an extended exemption period. 

In addition to the above changes, the Draft Decree includes transitional provisions to ensure the continuous application of the law and avoid interruption to business operations. Employers and foreign employees who have already been granted valid work permits or related approvals under the current legal regulations may continue to rely on those documents until their expiry.[10]

In conclusion, the Draft Decree provides important changes in regulations regarding the management of foreign workers in Vietnam. It introduces a more efficient system, which could make Vietnam more appealing to foreign experts and investors. The draft decree is being reviewed by the Government and may be subject to further revisions. 

Click here to download: Legal Update (EN) - Draft Decree on Regulation Regarding Foreign Employees Working in Vietnam - May 2025.pdf

[1] Article 2.1i of Decree 152

[2] Article 2.1h of the Draft Decree

[3] Article 4 of the Draft Decree

[4] Article 18.1 of the Draft Decree

[5] Article 22.2 of the Draft Decree

[6] Article 20.3 of the Draft Decree

[7] Article 9.9c of Decree 152

[8] Article 8.2 of Decree 152

[9] Article 15 of the Draft Decree

[10] Article 32.1 of the Draft Decree

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