NGUYEN DANH CONG – Partner
LE HUU TIEN – Junior Associate
In the context of the increasingly diverse demand for Vietnamese employees by foreign organizations and individuals in Vietnam, requirements for the recruitment and management of employees have also been raised to better suit current practices. On this basis, on 25 September 2026, the Government issued Decree No. 371/2026/ND-CP (“Decree 371”) regulating the recruitment and management of Vietnamese employees working for foreign organizations and individuals in Vietnam. Decree 371 takes effect from 15 November 2026, and replaces the corresponding provisions in Decree No. 152/2020/ND-CP, as amended and supplemented by Decree No. 70/2023/ND-CP (“Decree 152”), recording several notable changes as follows:
1. Narrowing the scope of foreign organizations and individuals in Vietnam
The concept of “Foreign organizations in Vietnam” stipulated in Decree 371 includes:
a. Diplomatic missions, foreign consular offices, representative offices of international organizations within the United Nations system, intergovernmental international organizations, regional and sub-regional organizations;
b. Representative offices of foreign government organizations;
c. Resident offices of foreign news, press, radio, and television agencies; and
d. Foreign non-governmental organizations granted registration certificates by competent Vietnamese authorities in accordance with Vietnamese law.
Compared to the previous regulations, the new regulation has removed “Representative offices in Vietnam of foreign organizations operating in the fields of: economy, trade, finance, banking, insurance, science – technology, culture, education, health, foreign legal consultancy” from the group of subjects governed by this specific labor recruitment and management mechanism. Instead, from the effective date of Decree 371, the recruitment and management of Vietnamese employees by these representative offices will be implemented in accordance with the Labor Code and relevant legal regulations.
Simultaneously, “Foreign individuals in Vietnam” falling under the governing scope are also limited to foreigners working at the above-mentioned organizations and employing Vietnamese employees.
2. Establishing the obligation to notify and publicly announce recruitment information
Decree 371 imposes an obligation to notify competent authorities or organizations in writing directly, via postal service, or online through the official email address of the competent authorities or organizations whenever foreign organizations or individuals have a demand to recruit Vietnamese employees, clearly specifying the job position and the number of personnel to be recruited. Concurrently, recruitment information must be publicly posted on the National Employment Transaction Portal (address: https://www.vieclam.gov.vn), other lawful employment portals, or the official website of the organization.
3. Abolishing the application dossier mechanism and strengthening post-recruitment management
Decree 371 has eliminated the regulation on the application dossier for Vietnamese employees, whereby employees are no longer required to provide a prescribed set of application documents, including materials such as personal identification documents, health certificates, diplomas, professional, technical, and foreign language certificates.
At the same time, the new Decree establishes a specific management process after the employment contract is signed, specifically:
a. Within 10 working days from the date of signing the employment contract with a Vietnamese employee, the foreign organization or individual must notify the competent management authority or organization, clearly stating the full name, personal identification number, job position, and start date of the recruited Vietnamese employee. Concurrently, the Vietnamese employee is responsible for submitting their employee management dossier, including a personal information form and a copy of the employment contract, to the competent management authority or organization.
b. Within 10 working days from the date of receiving the complete notification from the foreign organization or individual and the management dossier of the Vietnamese employee, the competent management authority or organization shall send a written notification directly or online to the foreign organization or individual regarding the acceptance of the management of the Vietnamese employee.
c. Within 10 working days from the date of terminating the employment contract with a Vietnamese employee, the foreign organization or individual must notify the competent management authority or organization, stating the reason for termination.
d. Within 03 working days from the date of receiving the notification of termination of the employment contract with a Vietnamese employee from the foreign organization or individual, the competent management authority or organization shall:
(i) Send a written confirmation directly or online regarding the termination of the management of the Vietnamese employee working for the foreign organization or individual;
(ii) Return the management dossier of the Vietnamese employee to the Vietnamese employee in accordance with the law.
4. Supplementing compliance obligations during the employment process
In addition to changing recruitment procedures and dossier management, Decree 371 also adds several new compliance requirements for both employees and foreign organizations or individuals. Specifically:
a. For Vietnamese employees:
- Are responsible for completing the State’s policy and legal dissemination program within 06 months from the date of signing the employment contract.
- Must update the employee management dossier and send it to the competent management authority or organization whenever there are any changes to personal information or upon request from the management authority or organization.
b. For foreign organizations and individuals:
- Must create conditions for employees to complete their management dossiers and participate in the policy and legal dissemination program.
- Must notify the competent management authority or organization within 07 working days from the date of commencing the use of services from a labor outsourcing enterprise.
Accordingly, before Decree 371 takes effect, foreign organizations and individuals in Vietnam currently employing or planning to recruit Vietnamese employees should promptly determine whether they still fall under the governing scope of the specific management mechanism under the new Decree. For organizations that continue to fall under the scope of Decree 371, internal HR recruitment and management processes also need to be updated to fully meet the new requirements on notification, public recruitment announcements, dossier management, legal policy dissemination, and reporting for outsourced labor, if any.
