The Vietnamese government introduced Decree 152/2020/ND-CP (Decree 152), which came into effect on 15 February. The decree overlooks the management of foreign workers in Vietnam as well as the hiring of Vietnamese employees who work for foreign businesses. Decree 152 replaces Decree 11 and Decree 75 and states how businesses can employ foreign individuals. The new regulations appear to be stricter compared to previous decrees.
Decree 152 Highlights
Employers that require hiring a foreign employee must submit a written request to the Ministry of Labor, War Invalids, and Social Affairs (MoLISA) 30 days before the commencement of employment. A response is typically received within 10 days after submission.
The employer should then request a work permit from the MoLISA. This should ideally be applied 15 days before the foreign worker commences their employment. Work permit processing times take up to 10 business days. A work permit cannot be applied directly by the workers/foreigners, but with the assistance of their employers from Vietnam.
Work Permit Requirements
As per Decree 152, a foreign expert is defined as:
- Having a bachelor’s degree or higher and having at least three years of experience working in the relevant field to the job position that the foreign employee has been hired for
- Having at least five years of experience with a practice certificate relevant to the job that the foreign employee has been hired for
- Special cases that fall under the discretion of the Prime Minister as per the MoLISA
A manager is defined as a person in charge of the organization.
An executive is defined as an employee directly administering affiliated entities of the employer.
A technical worker is defined as:
- An individual who has been training in a technical field or another major for at least one year and has been working for at least three years in their trained field; or
- Having at least five years of experience related to the job for which they will be employed in Vietnam.
Decree 152 requires several documents required for a work permit application. These include the following:
- Application form
- Health certificate issued in the past year as per guidelines by the Ministry of Health
- Police or criminal clearance certificate that is not less than six months old
- Proof as a manager or executive
- Proof as an expert or technical worker
- Acceptance from MoLISA for the demand for foreign employees
Work Permit Exemptions
Decree 152 lists several cases for work permit exemptions. As such, foreigners can only be exempt from a work permit if their capital contribution to the company is at least U.S. $130,400 (VND 3 billion).
Experts, managers, or technicians who enter Vietnam for up to 30 days no more than three times in a year may be exempted from a work permit. Foreign workers married to Vietnamese citizens and living in Vietnam are also exempted from work permits.
In addition, businesses that employ foreign personal that are exempted from a work permit must inform MoLISA at least three days before the employee start working in Vietnam.
Work Permit Renewals
Work permits should be renewed at least five days but not more than 45 days before the expiration date with an application to MoLISA.
Vietnamese Employees
As per the new decree, foreign businesses can now directly recruit Vietnamese employees without having to use a competent authority for recruitment.
Stricter Criteria for Foreign Workers
As mentioned earlier, Decree 152 requires foreigners to have a practicing certificate with at least five years of work experience in the job that they will be hired for in Vietnam. The decree also does not specify what the practicing certificate should entail leaving largely the local MoLISA to decide. Alternatively, an expert needs to have a relevant bachelor’s degree or higher degree relevant to their job position in Vietnam and a minimum of three years of work experience. In addition, the practicing certificate must be confirmed by an overseas company or organization.
Several businesses have expressed concerns regarding the new regulations and have stated that not all degrees that foreigners obtain are relevant to their current jobs while the employee may be highly experienced.
Employers Should Ensure They Are Compliant
Decree 152 shows that the government is getting stricter on hiring foreign nationals in Vietnam. Businesses are therefore advised to take note and study the new decree carefully to ensure they are following the new regulations. Businesses and employees who are not in compliance with this decree will face strict penalties and even deportation if they are found without a work permit, flouting labor rules.