• Insights

The Evolution of Vietnam’s Regulations on Foreign Workforce

January 31, 2015

Marco Deutsch

Country / Territory

  • VietnamVietnam

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Thanh Ton and Nicolas Bitar

At the end of 2014, the number of registered foreign employees in Vietnam had increased to over 100,000 from around 55,000 in 2012. In November 2013, the Vietnamese government implemented a new regulation (Decree 102) on the management and recruitment of foreign talent.
 
The regulation implements the new provisions of the Labour Code (effective May 2013). The purpose of the regulation was threefold: to better regulate and protect the local labour market; to tighten the requirements of the work permit regime; and to align the Vietnamese Labour Code with the government’s commitments under the World Trade Organization (WTO) Service Agreement.
 
What are the changes?
 
The key changes brought about by the new regulation are most notably:
 
  1. Reduction of the maximum duration of a work permit from 3 to 2 years. 
  2. Introduction of an additional level of governmental approval before a work permit application can be lodged. 
  3. Removal of extensions to work permits. Under the new regulation, foreign employees must apply for re-issuance instead. In addition, the requirements for re-issuance have increased, including a new medical check-up and local police clearance.
 
The changes were not well received by the foreign business community in Vietnam, which perceived the new regulation as not only tightening control of foreign workers but also adding red tape to the already lengthy and inefficient process.
 
Despite this perception, in practice, the implementation of the new regulation, particularly with the re-issuance of work permits and work permit exemption applications, varies amongst the different provinces and local competent authorities, leaving much to their administrative discretion.
 
In a twist contradictory to the tightening measures, the new regulation actually expanded the work permit exemption categories to include the eleven sectors in the WTO Service Agreement. At the time of implementation, however, there were no clear guidelines or clarification on the requirements of the exempted categories and companies were told to wait for the implementing Circular.
 
The Implementing Circular on Work Permit Exemption Categories
 
After a year of waiting, on 5 November 2014, the Ministry of Industry and Trade finally issued Circular 41 announcing the work permit exemptions for intra-company transferees within the eleven service industries listed under Vietnam’s WTO commitments. The industries include financial services, education, transportation and business services, to name a few.
 
While this Circular took effect on 22 December 2014, its implementation criteria have yet to be clarified by the local authorities. There are still uncertainties with respect to its interpretation and applications on the eligibility requirements.
 
At the time of writing, companies were advised by Departments of Labour across the country that their concerns will be clarified in the upcoming months after internal discussions and guidance from the Ministry of Industry and Trade.
 
It should be noted that this circular was adopted under very short deadlines, compared to previous regulations in the field, and comes into effect a few weeks before the implementation of a new law on immigration (which has come into effect to align with the full reformation of foreign labor laws in Vietnam). As it is currently implemented, the new immigration law effectively removes the possibility to enter Vietnam with a visa on arrival for business related trips. As such, it indirectly strengthens the importance of embassies and consulates and greatly restricts the possibility of the employee to be in-country before his work permit is issued.
 
What can we expect?
 
With the new reforms of the labor regulations recently announced and due in early 2015, it is still difficult to determine which direction the work permit regulations will take in the course of the year. However, as an example, with the new Work Permit Exemption regulation announced, one can hope that the authorities are taking feedback from the business community seriously and attempting to provide further clarity to streamline the processes.
 
Under the above backdrop, we anticipate the new work permit exemption regulations will have a positive impact on the management of foreign talent in certain industries. It seems that the work permit exemption process may well be shifting from an employee- and activities-based adjudication to an employer- and industry-based assessment. That being said, the full extent of the exemption regulation will only be seen once further clarification is received from the implementing authorities. The silver lining to this lack of clarity of course is local flexibility. This means that the local authorities may allow room for administrative discretion and practical, more business-friendly solutions.

Country / Territory

  • VietnamVietnam

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Arabian Gulf Business Insight: Corporate Relocations to the Gulf Retain Appeal

Partner Abeer Al Husseini discusses evolving corporate relocation strategies and sustained demand for moves to the Gulf.

Learn more

Blog post

Business Immigration After the Midterms (Part 3): Four Scenarios and What Employers Should Do Now

Partner K. Edward Raleigh analyzes post‑midterm business immigration risks in Part 3 of this blog series, outlining four possible election outcomes and the practical steps employers should take to prepare for increased enforcement and scrutiny.

Learn more

Media mentions

People Management: Can the Government Stop Overseas Employees Visiting the UK?

Partner Natasha Catterson explains how the UK ETA scheme is changing business travel by requiring pre-travel digital approval for many visa-exempt visitors.

Learn more

Media mentions

The PIE: Trump’s $100,000 H-1B fee ruled unlawful

Partner K. Edward Raleigh discusses the recent H-1B fee ruling and the potential for further appeals.

Learn more

Media mentions

Bloomberg Law: Congress’ Taxing Power Key to Trump Loss on $100,000 H-1B Fee

Partner Bo Cooper discussed a federal court decision vacating the $100,000 H-1B fee and noted that further legal proceedings are likely to shape the policy’s future.

Learn more

Blog post

Separating Fact and Fiction: Debunking Myths in German Immigration Law

Manager Adela Schmidt examines common misconceptions in German immigration law, including EU Blue Card mobility, short-term work permissions, residence permit extensions and communication with immigration authorities.

Learn more

Media mentions

Arbeit und Arbeitsrecht: § 45c AufenthG – Gut gemeint, aber lückenhaft?

Frankfurt Managing Partner Axel Boysen examines Germany's new Section 45c requirements and highlights key compliance considerations for employers recruiting talent from abroad.

Learn more

Video

Mexico Entry Requirements for the 2026 FIFA World Cup | #MobilityMinute

Senior Manager Sergio Flores discusses key immigration and travel considerations for individuals planning to visit Mexico during the FIFA World Cup 2026™, including visa waiver status, passport validity, FMM documentation and potential work-related visa requirements.

Learn more

Media mentions

PitchBook: Trump’s $100K H-1B Fee Was Meant to Slow Foreign Tech Hiring. It May Not Be Working.

Partner Audrea Golding discusses how top-funded startups may have greater flexibility in managing H-1B costs amid evolving hiring dynamics.

Learn more

Video

Swiss Naturalization: Understanding the Framework | #MobilityMinute

Manager Mihaela Dumitru discusses the Swiss citizenship process, including the authorities involved, key naturalization routes and why early planning is important.

Learn more

Video

UAE Hiring Update: Degree Equivalency | #MobilityMinute

In this Mobility Minute, Manager Minu Joseph discusses how academic qualification recognition is shaping hiring and workforce mobility in the United Arab Emirates and what employers should consider when planning international talent transfers.

Learn more

Fragomen news

Fragomen Earns Top Rankings in Chambers USA 2026

Fragomen earned top national and regional rankings in Chambers USA 2026, including its 13th consecutive year in Band 1 nationwide.

Learn more

Media mentions

Arabian Gulf Business Insight: Corporate Relocations to the Gulf Retain Appeal

Partner Abeer Al Husseini discusses evolving corporate relocation strategies and sustained demand for moves to the Gulf.

Learn more

Blog post

Business Immigration After the Midterms (Part 3): Four Scenarios and What Employers Should Do Now

Partner K. Edward Raleigh analyzes post‑midterm business immigration risks in Part 3 of this blog series, outlining four possible election outcomes and the practical steps employers should take to prepare for increased enforcement and scrutiny.

Learn more

Media mentions

People Management: Can the Government Stop Overseas Employees Visiting the UK?

Partner Natasha Catterson explains how the UK ETA scheme is changing business travel by requiring pre-travel digital approval for many visa-exempt visitors.

Learn more

Media mentions

The PIE: Trump’s $100,000 H-1B fee ruled unlawful

Partner K. Edward Raleigh discusses the recent H-1B fee ruling and the potential for further appeals.

Learn more

Media mentions

Bloomberg Law: Congress’ Taxing Power Key to Trump Loss on $100,000 H-1B Fee

Partner Bo Cooper discussed a federal court decision vacating the $100,000 H-1B fee and noted that further legal proceedings are likely to shape the policy’s future.

Learn more

Blog post

Separating Fact and Fiction: Debunking Myths in German Immigration Law

Manager Adela Schmidt examines common misconceptions in German immigration law, including EU Blue Card mobility, short-term work permissions, residence permit extensions and communication with immigration authorities.

Learn more

Media mentions

Arbeit und Arbeitsrecht: § 45c AufenthG – Gut gemeint, aber lückenhaft?

Frankfurt Managing Partner Axel Boysen examines Germany's new Section 45c requirements and highlights key compliance considerations for employers recruiting talent from abroad.

Learn more

Video

Mexico Entry Requirements for the 2026 FIFA World Cup | #MobilityMinute

Senior Manager Sergio Flores discusses key immigration and travel considerations for individuals planning to visit Mexico during the FIFA World Cup 2026™, including visa waiver status, passport validity, FMM documentation and potential work-related visa requirements.

Learn more

Media mentions

PitchBook: Trump’s $100K H-1B Fee Was Meant to Slow Foreign Tech Hiring. It May Not Be Working.

Partner Audrea Golding discusses how top-funded startups may have greater flexibility in managing H-1B costs amid evolving hiring dynamics.

Learn more

Video

Swiss Naturalization: Understanding the Framework | #MobilityMinute

Manager Mihaela Dumitru discusses the Swiss citizenship process, including the authorities involved, key naturalization routes and why early planning is important.

Learn more

Video

UAE Hiring Update: Degree Equivalency | #MobilityMinute

In this Mobility Minute, Manager Minu Joseph discusses how academic qualification recognition is shaping hiring and workforce mobility in the United Arab Emirates and what employers should consider when planning international talent transfers.

Learn more

Fragomen news

Fragomen Earns Top Rankings in Chambers USA 2026

Fragomen earned top national and regional rankings in Chambers USA 2026, including its 13th consecutive year in Band 1 nationwide.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
June 10, 2026 | Costa RicaCosta Rica: Special Permit for Colombian, Cuban, Nicaraguan and Venezuelan Nationals Introduced
June 11, 2026 | Republic of the PhilippinesPhilippines: Centralized Processing of Alien Employment Permits
June 11, 2026 | QatarQatar: Qatarisation Developments: Aligning Talent with Market Needs via Kawader
June 11, 2026 | 🌐Worldwide/Ukraine: Temporary Protection Status - Country-Specific Updates
June 10, 2026 | Saudi ArabiaArabian Gulf Business Insight: Corporate Relocations to the Gulf Retain Appeal
June 10, 2026 | Costa RicaCosta Rica: Special Permit for Colombian, Cuban, Nicaraguan and Venezuelan Nationals Introduced
June 11, 2026 | Republic of the PhilippinesPhilippines: Centralized Processing of Alien Employment Permits
June 11, 2026 | QatarQatar: Qatarisation Developments: Aligning Talent with Market Needs via Kawader
June 11, 2026 | 🌐Worldwide/Ukraine: Temporary Protection Status - Country-Specific Updates
June 10, 2026 | Saudi ArabiaArabian Gulf Business Insight: Corporate Relocations to the Gulf Retain Appeal
June 10, 2026 | Costa RicaCosta Rica: Special Permit for Colombian, Cuban, Nicaraguan and Venezuelan Nationals Introduced
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.