Regulations on foreigners working in Vietnam – latest

Learn: conditions for foreigners to work in Vietnam, necessary documents (work permit, temporary residence card…) & personal income tax settlement for foreigners.

When Vietnam opened its doors to integrate with the world economy, it created conditions for Vietnamese workers to move to other countries and foreigners who wanted to work in Vietnam increased day by day. Therefore, the State also set out its own regulations to support and protect the rights of foreigners who come to live and work in Vietnam. Find out with fdiinvietnam.com now.

Regulations on conditions for foreigners to work in Vietnam

Pursuant to Article 151 of the 2019 Labor Code, foreign workers working in Vietnam must meet the following conditions:

1. Belonging to the list of foreigners allowed to work in Vietnam;
2. Be a foreign citizen aged 18 years or older and have full civil act capacity;
3. Must be in good health according to regulations of the Minister of Health;
4. Have professional qualifications, technical skills and work experience;
5. Not being a subject who is serving a sentence, being prosecuted for criminal liability or has not had his/her sentence expunged under the provisions of foreign law or Vietnamese law;
6. Have a work permit for foreigners issued by a competent authority in Vietnam, except in cases of work permit exemption as prescribed by law.

4 types of documents required for foreigners to work in Vietnam

In addition to personal documents to enter Vietnam such as visa (Vietnam entry visa), passport, foreigners who want to live and work legally in Vietnam and be protected by Vietnamese law must have the following additional documents:

1. Work permit for foreigners

To work legally in Vietnam, foreigners must have a work permit issued by the Ministry or Department of Labor, War Invalids and Social Affairs of Vietnam, except for 20 cases not subject to work permit issuance as prescribed in Article 154 of the 2019 Labor Code and Decree 152/2020/ND-CP. A work permit is also the basis for protecting the legitimate rights of employees in the labor relationship with employers.

Foreign workers who do not have a work permit or a certificate of exemption from a work permit will be subject to an administrative fine of VND 15,000,000 – VND 25,000,000 and forced to leave or be deported from Vietnam.

1.1. Conditions for granting work permits to foreigners

Foreign workers who want to apply for a work permit in Vietnam must meet the 6 conditions that fdiinvietnam.com shared above. In addition, they must have written approval from a competent state agency regarding the job position using foreign workers.

>> See more: Regulations on work permits for foreigners.

1.2. Procedures for applying for work permits for foreigners

➨ Step 1. Request approval for the need to employ foreign workers

Employers must submit an application for registration of the need to employ foreign workers to the Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of the province or city where the employee is expected to work at least 15 days prior to the expected date of employment.

Within 10 working days from the date of receiving a complete dossier from the enterprise, the competent authority shall issue a written notice approving the enterprise’s job position using foreign workers or disapproving it, stating the reasons.

➨ Step 2. Apply for work permit for foreigners

Employers must submit applications for work permits for foreigners to the Ministry or Department of Labor, War Invalids and Social Affairs at least 15 working days before the employee’s expected start date of work in Vietnam.

Within 5 working days from the date of receiving a complete and valid application, the competent authority shall be responsible for issuing a work permit to the foreigner or issuing a notice requesting adjustment or supplementation if the application contains errors.

Note:

1. Documents proving the working position will vary depending on the position held by the employee, specifically:

• If the employee is a manager or executive: Document confirming that the employee has worked in these positions for at least 3 years;
• If the employee is an expert: Must have a university degree and at least 3 years of work experience in the trained field, suitable for the employee’s expected working position in Vietnam.

2. All relevant documents in the application issued abroad such as: criminal records, health certificates, documents proving experience, university degrees, etc. must be translated and consularized.

See details: 

>> Procedures for applying for work permits for foreigners;

>> Instructions for making criminal records for foreigners.

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A work permit is only valid for a maximum of 2 years. Therefore, if the permit expires but the employee continues to work in Vietnam, the work permit must be renewed. The maximum renewal period is 2 years and can only be renewed once. After the renewal period expires, you must apply for a new work permit.

If your business needs to apply for a new or extended work permit for a foreigner but is not clear about the procedures, you can refer to the work permit service of fdiinvietnam.com – cost from only 6,000,000 VND – receive a work permit after 20 – 25 working days.

2. Temporary residence card, permanent residence card for foreigners

One of two types of documents proving that a foreigner is legally living in Vietnam is a temporary residence card or a permanent residence card, specifically:

2.1. Temporary residence card

• Issued by the immigration authority under the Ministry of Public Security or a competent authority under the Ministry of Foreign Affairs;
• Allows foreigners to reside for a limited period of time and easily enter and exit Vietnam.
• Foreigners living in Vietnam without a valid temporary residence card may be subject to an administrative fine of up to VND 20,000,000 and deported from Vietnam.

➨ Conditions for granting temporary residence cards to foreigners working

The conditions for foreigners to be granted a temporary residence card in Vietnam are:

1. Foreigner’s passport must be valid for at least 13 months;
2. Foreign workers entering the country with visas have the symbols: LD1, LD2;
3. Have completed temporary residence registration procedures for foreigners at the commune or ward police station or registered online;
4. Invited and sponsored by an individual or organization in Vietnam;
5. Work permit or work permit exemption certificate is valid for at least 1 year.

>> See details: Regulations on temporary residence cards for foreigners.

➨ Procedures for temporary residence card for foreigners

Employers submit application documents for temporary residence cards for foreigners to the Immigration Department – Ministry of Public Security or the Immigration Department of the Provincial or Municipal Police according to the instructions below.

Processing time is 5 working days from the date of receipt of complete application.

Temporary residence card for workers is valid for a maximum of 2 years according to the validity of the work permit.

Note:

Relevant documents in the application for temporary residence card of foreigners must be consular legalized and translated into Vietnamese. 

>> See details: Procedures for making temporary residence cards for foreigners.

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In addition, to simplify and save time in carrying out procedures for temporary residence cards for foreigners, you can consider using the temporary residence card service for foreigners of fdiinvietnam.com – total cost from only 10,000,000 VND – completion time from 10 – 15 working days.

2.2. Permanent resident card

• Issued to foreigners by immigration authorities;
• Allow foreign workers to reside indefinitely in Vietnam, and do not need to apply for a visa when entering or exiting Vietnam;
• Foreign workers who decide to live and work long-term in Vietnam will be considered for a permanent residence card to replace a temporary residence card (must meet certain conditions as prescribed by the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam).

➨ Conditions for granting permanent residence cards to foreign workers working in Vietnam

Foreign workers who want to be considered for a permanent residence card in Vietnam must meet one of the following conditions:

• Foreigners who are married to Vietnamese citizens or are sponsored by their parents, spouses, or children who are Vietnamese citizens and are permanently residing in Vietnam. At the same time, have been temporarily residing in Vietnam for 3 consecutive years or more;
• Foreigners who are scientists or experts temporarily residing in Vietnam, are proposed for permanent residence by the Minister/Head of a ministerial-level agency or a government agency in charge of state management of the foreigner’s professional field;
• Stateless people who have been temporarily residing in Vietnam continuously since 2000 or earlier, have legal residence and stable income to ensure their life in Vietnam.

➨ Procedures for making permanent resident cards for foreign workers

Unlike temporary residence cards, the procedure for applying for permanent residence cards for foreigners is carried out by the foreign workers themselves at the immigration authority.

Foreign individuals submit applications and fees for permanent residence cards at the Immigration Department – Ministry of Public Security.

File processing order:

• Within 4 months from the date of receiving the complete application of the foreigner, the Minister of Public Security shall consider and decide to grant a permanent residence card to the foreigner or extend the period by a maximum of 2 months if additional examination is required;
• The Immigration Department – Ministry of Public Security will send a written notice of the results of the application processing to the foreigner and the Public Security of the province or centrally-run city where the foreign worker applies for permanent residence;
• Within 5 working days from the date of receipt of the notification from the Immigration Department, the Public Security agency of the province or centrally-run city where the foreigner applies for permanent residence shall notify the foreigner of the result of the permanent residence settlement;
• Within 3 months from the date of receiving the notification result, foreigners must come to receive the permanent residence card at the Immigration Department of the Provincial or City Police where they apply for permanent residence.

>> See details: Procedures for granting permanent residence cards to foreigners.

3. Labor contract of foreign employees with Vietnamese enterprises

To protect the rights and obligations of foreigners living and working in Vietnam, employees and employers must sign an agreement with each other regarding wages, working conditions, etc. called a labor contract. 

Accordingly, the content of the labor contract must be equivalent to the content of the work permit and the term of the labor contract must not exceed the term of the work permit. When employing foreign workers in Vietnam, the two parties can agree to enter into multiple fixed-term labor contracts.

>> See more: Regulations on labor contracts.

4. Driving license for foreigners

In addition, after being granted a temporary residence card or permanent residence card, if a foreigner needs to drive in Vietnam and has been granted a valid national driving license, he/she needs to complete the procedure to change to an equivalent driving license in Vietnam.

If a foreigner does not have a valid Vietnamese driver’s license and drives a vehicle on the road, he/she will be fined for not having a driver’s license, with a fine ranging from VND 4,000,000 to VND 6,000,000, and his/her foreign driver’s license will be confiscated.

➨ Conditions for changing driver’s license for foreigners

Foreigners working in Vietnam who want to drive a vehicle and want to convert to a driving license in Vietnam must meet the following conditions:

1. Have a temporary residence card/permanent residence card in Vietnam with a validity of 3 months or more;
2. Have a valid international driving license, vehicle class allowed to drive in Vietnam; 
3. Must be a driving license issued by a competent authority;
4. Foreigners’ driving licenses must be intact, without erasures, blurred information, or torn;
5. Foreign driving licenses are not temporary licenses and international driving licenses;
6. Foreigners must meet health standards as prescribed.

➨ Procedures for changing driver’s license for foreigners to use in Vietnam

Foreign workers directly submit their application for a driver’s license exchange to the Vietnam Road Administration or the Department of Transport where the foreigner is registered for temporary/permanent residence.

The processing time of the Vietnam Road Administration or the Department of Transport is no more than 5 days from the date of receipt of the complete application of the foreigner. In case of refusal to exchange the driving license for the foreigner, the agency will issue a written notice stating the reason.

Note:

When submitting the application for a driver’s license change, foreigners must take a photo directly at the Vietnam Road Administration or the Department of Transport and present the original of the above documents to compare with the copies.

>> See details: Procedures for changing driver’s license for foreigners.

Regulations on personal income tax settlement for foreigners

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

According to the provisions of Article 2 of the Law on Personal Income Tax 2007, when foreign employees work in Vietnam (regardless of whether they are non-residents or residents), that is, have taxable income arising in Vietnam, they must pay personal income tax.

However, to avoid double taxation in the case of foreign employees working in Vietnam but receiving salaries from abroad, Vietnamese law stipulates that foreign employees do not have to declare and pay personal income tax in Vietnam if they simultaneously satisfy the following 3 conditions:

1. Foreign workers whose total presence in Vietnam does not exceed 183 days in a calendar year or in 12 consecutive months;
2. The person paying income to foreign workers must not be a resident of Vietnam;
3. The wages of foreign employees do not arise at a permanent establishment or a fixed establishment that the employer has in Vietnam.

In short, if foreign employees work in Vietnam but receive salary from abroad and satisfy the three conditions above, they do not need to declare and pay personal income tax in Vietnam.

2. How to calculate personal income tax for foreigners

Pursuant to Article 18 of Circular 111/2013/TT-BTC, the formula for calculating personal income tax for foreigners working in Vietnam is as follows:

➨ For foreign workers who are individuals residing in Vietnam

Personal income tax of foreign workers residing in Vietnam is determined according to the formula:

➨ For foreign workers who are individuals not residing in Vietnam

Personal income tax on income from salaries and wages of non-resident foreign workers is determined according to the formula:

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

See details:

>> How to calculate personal income tax for foreigners;

>> Personal income tax settlement service for foreigners returning home.

Questions related to regulations on foreigners working in Vietnam