Vietnam: Eased Labor Market Testing Requirements, Consolidated Work Permit Steps, Among Changes in New Decree

Easing of job posting/labor market testing requirements.

·       Job posts are now only required for foreign nationals filing under the local hire scheme.

·       The job posting period has been reduced to five business days (from 15 calendar days).

·       Job posts can now be published across various platforms, as opposed to a government-managed job portal only.

·       Companies will benefit from the easing of job posting requirements for intra-corporate transferees.

·       The reduction in the job posting period may speed up the end-to-end processing time.

·       Companies no longer need to rely solely on the government-managed portal and can utilize their internal careers pages to post open roles.

Consolidated/eliminated steps.

·       The job position approval step is now integrated with the work permit application, and will only be required for foreign nationals filing under the local hire scheme.

·       Work permit applications can be submitted simultaneously with the police clearance certificate application.

·       Employers are no longer required to submit labor contracts for locally-hired employees unless specifically requested by the authorities.

·       The semi-annual reporting requirement has been removed.

·       This streamlines the application process and reduces the overall lead time for work permits.

·       Employers must still keep contracts and records of locally-hired employees.

Change in work permit qualifying criteria.

·       Experts. Now require a university degree or higher and at least two years of relevant experience (down from three years).

·       There is a new qualifying criteria for experts in priority sectors such as finance, science, technology and innovation – such foreign workers require a relevant university degree and at least one year of relevant experience.

·       Technical workers. Now require training for at least one year and at least two years of relevant experience (down from three years of experience). They also now require at least three years of relevant experience (down from five years).

·       More foreign nationals will qualify for work permits due to the expanded eligibility criteria.

Changes to work permit exemptions categories.

·       The three-trip limit has been removed for foreign nationals performing work activities in Vietnam.

·       The exemption duration has been extended to 90 days cumulatively within a calendar year (from January to December).

·       Spouses of Vietnamese nationals are now exempt from obtaining Work Permit Exemption Certificates.

·       Experts in key priority sectors are now eligible for Work Permit Exemption Certificates.

·       There is now increased flexibility to travel to Vietnam for short-term work without the need to obtain a work permit for up to 90 days in a calendar year.

·       There are reduced administrative burdens for spouses of Vietnamese nationals seeking to work in Vietnam. However, difficulties may arise as spouses will no longer have an official document proving right to work.

·       The Exemption Certificate opens up a pathway for companies in priority sectors to apply for a Work Permit Exemption rather than obtaining a Work Permit, allowing for speed to ground in Vietnam.

Working at multiple locations. Work permits for foreign nationals working in multiple locations in Vietnam are no longer processed by the Ministry of Home Affairs, and now fall under the authority of the Provincial People’s Committee where the employer’s head office is located.

·       Affected employers must notify the authorities in the additional localities where the foreign national is expected to work. 

·       The decree does not clearly address situations where the work performed is at a location that is not owned or operated by the employer. Further clarification is expected from the authorities.

Change in health certificate requirements. Health certificates issued by foreign health authorities may only be used if Vietnam and the issuing country have a mutual recognition agreement.

·       The authorities have not yet published information regarding the mutual recognition agreements and which countries are party to such agreements.

·       In the meantime, there is a risk that foreign health certificates will not be accepted, requiring foreign nationals to travel to Vietnam to complete the Work Permit application process.

Clarity in application processing timelines.

·       New work permit/Work Permit Exemption Certificate – apply within 60 days and no later than 10 business days prior to expected start date (applications processed in 10 business days)

·       Renewal of Work Permit/ Work Permit Exemption Certificate – apply within 45 days and no later than 10 business days before expiry date (applications processed in five business days).

·       The decree provides clarity and transparency on timelines.

·       While the processing time may not have changed significantly, both the easing of the labor market testing requirements, and the integration of the Job Position Approval step (for relevant applications) result in a significant change to the overall processing time for certain applications.