Work Permits

Work Permits

work-permits1

Work Permits

A Vietnamese entity can recruit foreign workers to work as managers, executive directors, and experts where local hires are not yet able to meet business requirements. Unlike in certain other Asian countries, Vietnamese representative offices are also able to hire staff directly. Under new regulations, the processing time includes: Announcing job vacancy The recruitment of Vietnamese workers for positions usually filled by foreign workers is announced on the Ministry of Labor, War Invalids, and Social Affairs (Employment Department) website or the Employment Service Center website. These announcements are made at least 15 days before submitting an explanation report to the Ministry or the Department of Labor, War Invalids, and Social Affairs. Explanation reporting Send an explanation report to the competent authority. This process will at least take 15 days prior to the date of hiring foreign workers. Within 10 working days, after receiving an explanation report, the competent authority shall issue a document specifying acceptable and unacceptable job positions for foreign workers. Applying for a work permit The applicant must submit a work permit application to the competent authority at least 15 working days before the foreign worker's start date. The competent authority will issue the work permit within 5 working days of receiving a complete application. The total time to apply for a work permit usually falls on 1.5 – 2 months. A work permit is required to apply for a temporary residence card or a working visa in Vietnam. Under the new Labor Code 2019 that took effect in 2021, work permits are issued for a period of up to two years and restricted to only one renewal. Upon the expiration of the extended work permit, the employer must follow the same procedure to obtain a new work permit if they intend to continue employing the foreign employee. Eligibility requirements for work permits To be eligible for a work permit, the applicant must comply with the following conditions: • At least 18 years of age and has full legal capacity; • Qualifications, occupational skills, practical experience, and adequate health as prescribed by the Minister of Health; • A manager, executive director, or expert with technical skills and knowledge necessary for the job; • Not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under the home country laws or Vietnamese law; and, • A visa that is granted by a competent authority of Vietnam unless otherwise prescribed by laws. Further, foreigners are required to have a practice certificate with at least five years of work experience in the job that they will be hired for in Vietnam. Alternatively, experts need to have a relevant bachelor’s degree or higher relevant to their job position in Vietnam and a minimum of three years of work experience. In addition, the practice certificate must be confirmed by an overseas company or organization. Depending on the job assignment (Manager/Executive/Expert/Technical worker), foreign workers need to have proven experiences, and provide different documents, while the employer needs to explain the recruitment needs to foreign workers before applying for a work permit. The job assignment's criteria are as follows: Expert • Obtains at least a bachelor’s degree or equivalent and at least 3 years experience in corresponding with the job position that he/she will be appointed in Vietnam; • Obtains at least 5 years experience, and a practice certificate that corresponds with the job position that he/she will be appointed in Vietnam; • Falls under a special case subject to a decision of the Prime Minister according to a request of the Ministry of Labor, War Invalids and Social Affairs. Manager, or Executive • The company's charter or operation regulations of agency, organization, or enterprise; • Certificate of enterprise registration or certificate of establishment or establishment decision or other document of equivalent legal validity; • Resolution or appointment decision of the agency, organization, or enterprise. Technical Worker • Has been trained for at least 1 year and obtains at least 3 years experience in corresponding with the job position that he/she will be appointed in Vietnam; • Obtains at least 5 years experience in corresponding with the job position that he/she will be appointed in Vietnam. Several documents are required for a work permit application. These include: • Application form; • Health certificate issued in the past year as per guidelines by the Ministry of Health; • Police or criminal clearance certificate, no less than six months old; • Proof as a manager or executive; • Proof as an expert or technical worker; and • Acceptance from DOLISA for the demand for foreign employees. Currently, work permits for foreigners are valid for a maximum of two years and may be extended once for up to 02 more years. Termination of work permit A work permit may be terminated in the following circumstances: • Expiration of work permit; • Termination of labor contract; • The content of the labor contract is not consistent with the work permit granted; • If the foreign employee is fired by the foreign employer; • Withdrawal of work permit by authorized state agencies; • Termination of operation of the company, organization, and partners in Vietnam; • The work performed is not conformable with the contents of the work permit granted; and, • The employer that hires the foreign employee ceases its operation. In certain circumstances, a foreigner may work in Vietnam without a work permit, but they need to apply for a work permit exemption certificate. This certificate is equivalent to work permit, valid for up to 2 years, and also serves as a basis to apply for a temporary residence card. A notice must be submitted 5 days in advance to the provincial DoLISA prior to working in Vietnam. Foreign workers without a valid work permit or work permit exemption certificate, or those using expired documents, will be fined 15 to 25 million VND (USD 588 – 980) and deported. Employers hiring foreign workers without the necessary permits or exemption certificates will face fines ranging from 30 to 75 million VND (USD 1,000 – 3,000). Work permit exemptions The following situations exempt the foreigner from needing a work permit: • Working in Vietnam as a manager, executive, expert or technical worker for a period of work of less than 30 days and up to 3 times a year; • A member of a limited liability company with two or more members with a capital contribution value of at least VND 3 billion (USD 127,000); • The owner of a limited liability company with only one member with a capital contribution value of at least VND 3 billion (USD 127,000); • A member of the board of a joint-stock company with a capital contribution value of at least VND 3 billion (USD 127,000); • Coming to Vietnam to market products and services for less than 3 months; • Coming to Vietnam for less than 3 months in order to resolve an emergency or technologically complex situation that could affect production, which Vietnamese experts or foreign experts currently in Vietnam are unable to resolve; • Lawyers granted a professional permit in Vietnam; • Heads of representative offices, chiefs of project offices, or someone working for foreign non-government organization in Vietnam; • Internally transferred within an enterprise, which has a commercial presence in the committed service list of Vietnam with the World Trade Organization, including: business service, information service, construction services, distribution service, education service, environment service, financial service, health service, tourism service, cultural and recreational services and transportation service; • Providing consulting services on tasks to research, build, appraise, monitor and evaluate, manage, and process programs and projects that use Official Development Assistance (ODA) in accordance with regulations or agreements in an international treaty on ODA signed between an authorized Vietnam agency and foreign agency; • Marriage to a Vietnamese citizen; • Grant of communication and journalism practice certification in Vietnam by the Ministry of Foreign Affairs as per the law; • Other circumstances specified by the Government. Foreign workers without a valid work permit or work permit exemption certificate, or those using expired documents, will be fined 15 to 25 million VND (USD 588 – 980) and deported. Employers hiring foreign workers without the necessary permits or exemption certificates will face fines ranging from 30 to 75 million VND (USD 1,000 – 3,000).