Partner Nguyen Danh Cong

Senior Associate Tasneem Kanthawala

DIMAC Law Firm

The Vietnamese government just issued new Decree 70/2023/ND-CP (“Decree 70”) which regulates the procedures for Work Permits and WP Exemptions in Vietnam issuing some positive changes and requirements for employing foreign employees in Vietnam, taking effective on 18 September 2023.

Please see the below for the notable points of Decree 70 amending Decree 152/2020/ND-CP on Work Permits and Work Permit Exemptions in Vietnam:

1.     Work Permit Exemption for foreign employee married with Vietnamese spouse

According to the new Decree 70, the dossier for Work Permit exemption for foreign employee married to a Vietnamese national does not need to obtain the approval on using foreign employee as previous regulation. Accordingly, employer can directly inform DOLISA about the employment of a foreign employee married to a Vietnamese national, without the need for an employment announcement.

2.     Requirements for Step 1: seeking approval on using foreign employee

The timeline for the step 1 for seeking approval on using foreign employee is approved to be shortened from 30 days to 15 days from the anticipated date of foreign labour employment.

Moreover, as from 1 January2024, employers are required to firstly announce job vacancies for Vietnamese workers in the roles intended for foreigners via the portal of Department of Employment under MOLISA or Provincial Employment Service Centers under Provincial-level People’s Committee. This announcement is mandatory to be made at least 15 days before the expected submission date of Step 1. If no Vietnamese candidate is hired after this 15-day period, Step 1 can be submitted. Currently, there are no guidance on how to provide evidence of the job announcement and the impossibility to employ Vietnamese candidates.

3.      Expanding scope for managerial level positions

Under the Degree 70, Managing Director/CEO means the head of a branch, representative office, or business location or an individual who directly oversees at least one company domain and reports to the head of the company.

This includes roles such as CFO, marketing director or head of any department, previously classified as “experts” with specific degrees and experience requirements. However, under the Decree 70, these positions may be considered as “Managing Director/CEO”.

To show the positions as Managing Director/CEO, the new regulations provide a clear list of documents required to be submitted for these positions:

-     The company’s charter or internal policies;

-     The Enterprise Registration Certificate (ERC) or an equivalent document; and

-      A resolution or appointment decision.

4.     Broadening acceptable documents required for Expert or Technical Worker

Under the new Decree 70, it has broadened the range of acceptable documents to verify experience for job positions, including: degrees, certificates, accreditations and letters confirming experience or previously issued Work Permits/Work Permit Exemptions. This is a positive change from the previous regulation, required a more restrictive “Degrees, certificates, and proof from offshore companies reflecting the years of experience”.

Moreover, to simplify the documentation format for Work Permit applications in Vietnam, employer may choose to submit the applicant’s passport as a notarized copy or a certified true copy confirmed by the employer.

5.     Regulations on foreign employee working for many workplaces

If a foreign employee is assigned to work for an employer at multiple locations, the dossier for obtaining WP is required to list all of these locations. If these locations are based in different provinces or cities, within 3 working days from the commencement of the work, the employer has to report to MOLISA and DOLISA in the areas where the employee works.

6.     Simplifying the process for renewing Work Permit

Under the new Decree 70, after one extension, if an employee wishes to continue in the same role, the re-application process is less complicated as compared to a new application, with no need to submit the Criminal Records and experience proof documents. This is a significant difference from the previous regulations, only one extension of the Work Permit was permitted, and subsequent applications were treated as new, requiring the submission of all documents as a new application.

Here is our advice on New changes in work permit procedures in Vietnam under new decree 70: Loosened or tightened. As a professional corporate lawyer team in the field of investment, we are always ready to provide our clients with optimal solutions in terms of efficiency, cost, and simplified legal procedures. Please visit our DIMAC website and other News category to get the latest updates on legal advice and market experience sharing.