Questions about regulations for foreigners working in Vietnam, work permits for foreigners, labor contracts with foreigners.

Top questions about regulations for foreigners working in Vietnam

1. What are the conditions for foreigners to work in Vietnam?

Conditions for foreigners working in Vietnam include:

• Foreign nationality, full civil capacity;
• From 18 years of age and above, ensuring health according to regulations of the Minister of Health;
• Have technical qualifications, professional qualifications, skills and work experience;
• Have a work permit for foreigners issued by a competent authority in Vietnam (except in cases of work permit exemption);
• Belong to the group of foreigners allowed to work in Vietnam;
• Not on the list of subjects being prosecuted for criminal liability, currently serving a sentence or not having their sentence expunged according to the provisions of Vietnamese law or foreign law.

>> See details: Conditions for foreigners to work in Vietnam. 

2. What documents do foreigners need to work in Vietnam?

In addition to the necessary identification documents for entry such as passports and visas, foreigners who want to work in Vietnam basically need the following documents:

• Criminal record;
• Work permit for foreigners;
• Temporary residence card or permanent residence card;
• Labor contract;
• Driving license for foreigners. 

>> See details: Necessary documents for foreigners to work in Vietnam.

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The legal documents required for foreigners to work in Vietnam are quite complicated, requiring the person doing the work to have practical experience working with competent authorities, taking a lot of time and effort.

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3. What are the steps in the process of recruiting foreigners to work in Vietnam?

The process of recruiting foreigners to work in Vietnam includes the following 5 basic steps:

• Step 1: Report and request approval to use foreign labor;
• Step 2: Recruiting foreign workers;
• Step 3: Apply for work permit for foreigners;
• Step 4: Signing the labor contract (LC);
• Step 5: Apply for visa for foreigners.

>> See details & download application form: Recruiting foreigners to work in Vietnam.

4. Are foreigners working in Vietnam subject to personal income tax?

Yes. According to the Law on Personal Income Tax, foreign employees working in Vietnam, if they have taxable income arising in Vietnam, must pay personal income tax (regardless of whether the employee is a resident or non-resident individual).

5. How is personal income tax calculated for foreigners regulated?

Depending on whether a foreign employee is a resident or non-resident in Vietnam, the regulations on calculating personal income tax will be different, specifically:

➧ For foreign employees who are resident individuals:

Personal income tax payable = (Total income – Tax exemptions – Reductions) x Tax rate

➧ For foreign employees who are non-resident individuals:

Personal income tax payable = Taxable income from wages and salaries × Tax rate 20%

>> See details: How to calculate personal income tax for foreigners. 

6. Can foreigners work in two places at the same time in Vietnam?

Yes. According to the 2019 Labor Code, foreign employees in Vietnam can completely sign contracts with 2 or more different employers at the same time, as long as they ensure that they properly and fully implement the contents of the contract.

7. How are foreign employees’ paid holidays and Tet holidays regulated?

Foreign employees in Vietnam are entitled to 13 days off for holidays and Tet with full pay, including:

• 1 day on New Year’s Day;
• 5 days of Lunar New Year;
• 2 days on the occasion of April 30 and May 1;
• 3 days National Day holiday (*);
• 1 day on Hung King’s death anniversary;
• 1 day of traditional New Year holiday in the foreign worker’s country.

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(*) Including 2 Vietnamese National Days and 1 National Day of the foreign worker’s country.

8. In what forms can salaries be paid to foreign employees?

Similar to domestic employees, employers can pay salaries to foreign employees in 2 ways:

• Cash payment;
• Payment via foreign employee’s personal bank account.

9. Do foreign employees need to participate in unemployment insurance?

No. Foreign workers are not included in the list of subjects regulated by the 2013 Employment Law, so they do not need to participate in unemployment insurance.

Refer to the social insurance contribution rate for foreign workers in the following table.

For foreign workers
Total	Social insurance (*)	Health insurance	Social Insurance
9.5%	8%	1.5%	–

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(*) Social insurance includes: 

1. Retirement, death;
2. Sickness, maternity;
3. Work accidents, occupational diseases.

>> Learn more: Social insurance contribution rates.

Top questions about work permits for foreigners

1. Is it mandatory to apply for a work permit for foreigners?

Except for cases exempted from work permits, foreigners wishing to work in Vietnam are required to have a work permit as prescribed. 

2. In which cases are foreign employees exempt from work permits?

Pursuant to the 2019 Labor Code and Decree 152/202/ND-CP, there are 20 cases of work permit exemption for foreigners. 

Most of these cases are diplomatic objects between Vietnam and other countries or cases where Vietnam creates conditions for experts, high-quality workers, and people in positions to come to work and help Vietnam.

>> See details: Cases exempted from work permits. 

3. How long is the validity of a work permit for foreigners? 

Work permits for foreigners are valid for a maximum of 2 years. 

Note:

Foreign employees can only carry out the procedure to extend their work permit once with a validity of 2 years. If after that, the foreigner continues to need to stay and work in Vietnam, it is mandatory to carry out the procedure to re-issue the work permit (similar to the procedure to issue a new work permit).

4. What documents are required to apply for a work permit for foreigners?

Application for work permit for foreigners is regulated as follows:

➧ For employers: 

• Application for work permit for foreigners;
• Document approving labor demand (*);
• Business registration certificate (notarized copy). 

➧ For foreign workers:

• Passport of foreign workers requiring a permit (certified copy);
• Criminal record issued in Vietnam or abroad;
• 4 x 6cm portrait photo, white background (2 photos);
• Document proving position as executive director, manager or technical worker, specialist. 

>> See more and download free application form: Procedures for applying for a work permit.

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(*) That is, organizations that want to recruit foreign workers must complete the procedure for approval of the need to use foreign workers, then proceed with the steps to apply for a work permit for foreigners.

5. What are the procedures for extending work permits for foreigners?

You can carry out the procedure for extending work permits for foreigners in the following steps: 

• Step 1: Prepare a set of documents to extend the work permit according to regulations;
• Step 2: Submit application to the Department of Employment, Department of Labor, War Invalids and Social Affairs or the Ministry of Labor, War Invalids and Social Affairs;
• Step 3: Wait for the application to be processed and receive results (within 5 working days). 

>> See details and download free application form: Procedures for renewing work permit.

Consider using the services at Online Accounting to simplify all procedures and speed up completion time: >> Work permit renewal service – full package from 10,000,000 VND.

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6. What documents are required for a work permit exemption application?

Details of the application for work permit exemption include:

• Application for confirmation that foreign employees are not subject to work permit issuance;
• Temporary residence card or passport with valid term as prescribed (certified copy);
• Health certificate or health certificate (issued within 12 months);
• Document approving the need to use foreign labor (except for cases where it is not necessary to determine the need to use foreign labor);
• Documents proving that foreign workers are not eligible for work permits. 

>> See more and download free application form: Procedures for applying for work permit exemption.

7. In what cases will a foreigner have his/her work permit revoked?

Below are 3 cases where foreigners have their work permits revoked:

1. Work permit expired;
2. Foreign employers or employees violate the provisions of Decree 152/2020/ND-CP;
3. Foreign workers do not comply with Vietnamese laws during work, leading to impacts on security, order and social safety.

>> See details: Revocation of work permit – Specific regulations. 

8. How are foreigners who work without a work permit punished?

According to Clause 3, Article 32 of Decree 12/2022/ND-CP, foreigners working in Vietnam without a work permit will be punished as follows:

• Administrative fine from 15,000,000 VND to 25,000,000 VND;
• Deported from Vietnam, banned from entering Vietnam for 3 years.

9. How will employers who employ foreign workers without work permits be punished?

According to Clause 4, Article 32 of Decree 12/2022/ND-CP, employers of foreign workers who do not have a work permit or have an expired work permit will be fined depending on the number of violating workers, specifically:

➧ For individual employers:

• From 30,000,000 VND – 45,000,000 VND: Violating from 1 – 10 foreign workers;
• From 45,000,000 VND – 60,000,000 VND: Violating from 11 – 20 foreign workers;
• From 60,000,000 VND – 75,000,000 VND: Violating from 21 foreign workers or more.

➧ For employers who are organizations and enterprises:

Double the administrative penalty for individual employers. 

>> See details: Penalties for foreigners without work permits.

10. Does the term of a work permit for a foreigner automatically end when the labor contract ends?

Pursuant to Article 156 of the 2019 Labor Code, termination of the labor contract is one of the reasons for the expiration of the work permit. Therefore, when the labor contract ends, the term of the work permit for foreigners also ends. 

Top questions about labor contracts with foreigners

1. In what forms can employers sign labor contracts with foreigners?

The labor contract between the employer and the foreign employee must be a fixed-term contract. Depending on the cooperation needs of the parties, it is possible to agree to sign multiple contracts. 

>> See details: Labor contracts with foreigners – specific regulations.

2. Are foreign employees allowed to sign indefinite-term labor contracts with employers?

No. The term of the labor contract between the foreign employee and the employer must not exceed the term of the foreign employee’s work permit (i.e. not exceeding 2 years). 

3. How much notice do foreign employees need to give to unilaterally terminate their employment contracts?

Foreign employees unilaterally terminating their labor contracts must notify in advance: 

• At least 3 days: If signing a labor contract with a term of less than 12 months;
• At least 30 days: If signing a labor contract with a term of 12 months or more.

4. How much notice does an employer need to give if they want to unilaterally terminate the labor contract? 

Employers wishing to unilaterally terminate a labor contract with a foreigner must notify in advance:

• At least 3 days: If signing a labor contract with a term of less than 12 months;
• At least 30 days: If signing a labor contract with a term of 12 – 24 months.

5. In what cases can a foreign employee unilaterally terminate the labor contract without prior notice?

Foreign employees may unilaterally terminate their employment contracts without prior notice in the following cases:

• Working conditions are not guaranteed according to the agreement;
• Not being paid the full salary, on time as prescribed;
• Not being arranged and assigned according to the agreed work and work location;
• The employer provides dishonest information as prescribed (about work, conditions, location, working hours, etc.), affecting the implementation of the labor contract;
• Employers beat, mistreat or have behaviors that affect the health of foreign employees… 

6. Is it okay for a foreign employee to unilaterally terminate the labor contract illegally?

If the labor contract is unilaterally terminated illegally, the foreign employee will:

• No severance pay;
• Must reimburse training costs to employers in accordance with regulations;
• Must compensate half a month’s salary according to the labor contract to the employer and an amount equivalent to the salary for days off without notice. 

7. What benefits do foreign employees enjoy when their employer unilaterally terminates their labor contract illegally?

Depending on the needs and agreements on continued cooperation between the employer and foreign employees, the regulations on the rights and benefits enjoyed by foreign employees in this case will be different. Specifically:

➧ Case 1: The employer and foreign employee agree to cooperate and work again.

• Receive compensation for days not worked;
• Compensate for health insurance and social insurance for days not worked;
• Receive an additional amount of money at least twice the employee’s monthly salary according to the labor contract;
• Receive an amount of money equivalent to the employee’s salary according to the labor contract for days off without prior notice (in case the employer violates the regulations on notice period). 

➧ Case 2: Foreign employees do not want to continue working with the employer

• Receive severance pay;
• Enjoy the same benefits as case 1.

>> See details: How to calculate severance pay.

➧ Case 3: The employer does not want to continue working with the foreign employee and the foreign employee agrees to that:

• Enjoy the same benefits as case 2;
• Receive compensation of at least 2 months of foreign employee’s salary according to the labor contract.

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Above are specific answers to frequently asked questions about regulations for foreigners to work in Vietnam, about work permits for foreigners as well as issues about labor contracts with foreigners. 

In case you are having legal or accounting or tax difficulties regarding issues related to foreigners working in Vietnam, call Online Accounting immediately at the following hotline numbers for quick consulting support:

➧ Legal  0978 578 866 (North)  –  033 9962 333 (Central)  –  033 9962 333 (South)

➧ Accountant  0978 578 866 (North)  –  033 9962 333 (Central)  –  0946 724 666 (South)