Corporate Immigration — New change in work permit procedures in Vietnam

The Vietnamese government has amended Decree 70/2023/N-CP, directly impacting the work permit process and requirements.

Who will be affected?

• Companies with foreign employees
• Foreign workers seeking work permits for Vietnam

Impact and implementation

1. Changes to the requirements for obtaining permission to use foreign labour.
   Before the expected start date of the new employee, the company must submit a request for Approval of Foreign Employee demand to the Department of Labour, Invalids and Social Affairs (DOLISA) or Ministry of Labour, Invalids and Social Affairs (MOLISA) within 15 days rather than 30 days as previously required. Furthermore, beginning January 1, 2024, companies must first post job opportunities for Vietnamese applicants. This notice must be made at least 15 days before the request for approval of foreign employee demand is submitted. If no Vietnamese candidates are hired after 15 days, the employer will submit the request for approval of foreign employee demand and wait for a result after ten working days. There is currently no guidance on how to generate job announcement documents.
2. Foreign Experts’ role preliminary requirements have been simplified.
   In light of recent regulatory revisions, it is now stipulated that individuals occupying positions classified as “Experts” must possess a Bachelor’s degree or higher, in addition to a minimum of three years of pertinent professional experience. This represents a departure from the previous mandate, which necessitated that the academic degree and the three-year experience be directly aligned with the specific job role or assignment.
3. Acceptable papers for Expert or Technical Worker jobs have been expanded.
   In accordance with the newly enacted Decree 70, there has been a notable expansion in the array of permissible documentation that may be utilised to substantiate one’s work experience for specific job positions. These now encompass academic degrees, professional certificates, official accreditations and written attestations confirming prior work experience or previously issued Work Permits/Work Permit Exemptions. This pivotal amendment represents a significant enhancement compared to the preceding regulations, which imposed more stringent criteria by mandating the submission of “academic degrees, certificates, and documentation from international entities attesting to years of relevant experience.”In addition to the aforementioned improvements, a streamlined approach to document submission for Work Permit applications within the Vietnamese jurisdiction has been instituted. Employers can now furnish the applicant’s passport as a notarised copy or a certified true copy duly authenticated by the employer. This simplification of the paperwork format facilitates a more efficient and seamless application process for Work Permits in Vietnam.
4. Updated paperwork and expanded scope for management level roles.
   The designation of Managing Director/CEO, as outlined in Degree 70, encompasses the leadership role within a branch, representative office, business establishment or an individual responsible for directly overseeing a distinct division within a company, reporting directly to the company’s senior executive. This classification extends to roles traditionally categorized as “experts,” which entail specific educational and experiential prerequisites, such as CFO, Marketing Director, or department heads. Notably, these roles may now carry the title of “Managing Director/CEO” under the provisions of Decree 70.The updated regulations introduce a meticulously detailed list of mandatory documentation to be submitted when applying for positions within the capacity of Managing Director/CEO:
   • The charter or internal regulations of the company.
   • The Enterprise Registration Certificate (ERC) or an equivalent document.
   • A resolution or appointment decision.
5. The Work Permit Exemption regulations are applicable to foreign nationals who have entered into matrimony with Vietnamese citizens.
   In the case of foreign individuals married to Vietnamese nationals, the process for seeking a Work Permit exemption has undergone a significant simplification. Securing foreign employee demand approval is no longer a prerequisite, which was previously obligatory in similar instances. Consequently, companies are now empowered to directly inform the Department of Labour, Invalids and Social Affairs (DOLISA) regarding the employment of foreign individuals married to Vietnamese citizens. Of paramount importance is the fact that, given the exemption from Work Permit requirements in such cases, there exist no restrictions on the duration of employment for foreign individuals who have wed Vietnamese residents.
6. Regulations on foreign employees working in multiple workplaces.
   When an employee’s duties encompass various work locations, such as the corporate headquarters, branch offices, company franchises, or other affiliated sites, the Work Permit (WP) application form must exhaust all these distinct work premises. Should these sites span multiple provinces or cities, it becomes incumbent upon the employer to promptly notify both the Ministry of Labour, Invalids and Social Affairs (MOLISA) and the Department of Labour, Invalids and Social Affairs (DOLISA) within the respective regions where the employee will be rendering services. This notification obligation must be fulfilled within three working days from the commencement date of the employee’s assignment.
7. The process of renewing a work permit has been simplified.
   Previously, the Work Permit extension policy allowed only a single extension, with all subsequent requests treated as entirely new applications. However, in accordance with the revised regulations outlined in Decree 70, there has been a notable adjustment. Specifically, the extension provision now extends to two renewals for employees seeking to sustain their employment within the same job categories, namely “Experts” and technical workers, and maintain their existing job titles. Significantly, the re-application process for these extensions has been streamlined, alleviating the administrative burden as there is no requirement to furnish non-criminal records or experience verification documents.

Santa Fe Analysis

The recent legislative changes, taking effect on September 18, 2023, have prompted a multitude of inquiries and concerns from employers. We are actively engaged in the process of seeking clarification and guidance from relevant government departments to address these issues comprehensively.
Should you have any specific inquiries or require clarification on these matters, we encourage you to reach out to our dedicated Santa Fe Immigration team. We are committed to providing you with the necessary support and information to navigate these changes effectively.

Trang Nguyen
Immigration Manager
Santa Fe Relocation
Vietnam
D: +84 (0) 3933 0065
E: trang.nguyen@santaferelo.com

Robert Day
Group Head of Immigration Operation
Santa Fe Relocation
London, UK
D: +44 7990 021125
E: robert.day@santaferelo.com

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