1. Foreigners must prepare related Documents & Permit before working in Vietnam

a. Work permit

The Vietnam work permit is an official certificate issued by the Department of Labor, Invalids, and Social Affairs (DoLISA) that authorizes foreigners to work legally within the country. This permit cannot be directly applied for by foreign workers; rather, it requires the assistance of their employers or a service center in Vietnam. It serves as a crucial document for applying for a temporary residence card or working visa in Vietnam.

To apply for a work permit in Vietnam, a foreign employee must meet the following criterias:

• Age and Civil Capacity: The employee must possess full civil capacity as prescribed by law and be at least 18 years of age.
• Valid Passport: The employee must hold a valid passport with a minimum of six months' validity remaining.
• Health Requirements: The employee must be in suitable health to meet the job requirements.
• Criminal Record: The employee must not have a criminal record or be undergoing criminal prosecution, in accordance with both Vietnamese and foreign law.
• Position Requirements: The employee must occupy a position as an enterprise manager, executive director, expert, or technician and provide documentation that verifies their status in accordance with Decree 152/2020/NĐ-CP – Article 3.

The specific requirements for each position are as follows:

• For a Manager: Must be a registered legal representative of the Vietnam company, or serve as the head or deputy head of the company;
• For an Executive Director:
  • Heads of branches, representative offices, business location...
  • Heads and those who directly supervise a division belonging to a company/business and under the direction of the head of that company/business;
• For an Expert:
  • Graduated from university or higher, or equivalent + at least 3 years of skilled working experience relevant to the job position in Vietnam;
  • Having a relevant professional qualification + at least 5 years of skilled working experience relevant to the job position in Vietnam;
• For a Technical Worker:
  • Having been trained for at least 01 year + at least 3 years of skilled working experience relevant to the job position in Vietnam;
  • Having at least 5 years of skilled working experience relevant to the job position in Vietnam;

Documentation requirements:

• For Managers and Executive Directors:
  • The company’s charter or operational regulations of agencies, organizations, or enterprises.
  • Certificate of enterprise registration, certificate of establishment, establishment decision, or other documents of equivalent legal validity.
  • Resolutions or decisions regarding appointments from agencies, organizations, or enterprises.
• For Experts and Technical Workers:
  • Diplomas or certificates.
  • Written certification from an overseas agency, organization, or enterprise detailing the number of years of experience for experts and technical workers or work permits that have been issued or confirmed as not eligible for issuance.

Application process:

Step 1: The application for a work permit must be initiated by your prospective employer in Vietnam. They are responsible for submitting the necessary paperwork to the local Department of Labor, Invalids, and Social Affairs (DoLISA) at least 15 days before the expected date of employment of foreign workers.

Step 2: The foreign applicant must provide all the required documents, including: 

Please note that document issued overseas and in a foreign language must be consular legalized and translated into Vietnamese.

Step 3: After collecting all the necessary documents, the employer will forward them to DoLISA. If the application is complete and valid, the employer will pay the work permit fee (VND400,000 ~ $16/permit in Hanoi; VND600,000 ~ $25/permit in Ho Chi Minh city) and schedule an appointment to retrieve the results. During this review period, DoLISA may request additional documents or make corrections to your application.

Step 4: Within 07 working days from the date of receipt of the application, the DoLISA must issue a work permit for the foreign worker using forms prescribed by the Ministry of Labor - Invalids and Social Affairs. In case a work permit is not granted, DoLISA must issue a written reply clearly stating the reason.

b. Working visa

After obtaining a work permit, the working visa is equally essential for legal residency in Vietnam. Foreigners intending to stay in Vietnam for more than 90 days are required to apply for a Long-term visa (L visa). Various types of L visas are available, each tailored to specific purposes and durations of stay:

• LD Visa: This visa is designated for foreign employees who hold positions as managers, executive directors, experts, or representatives of foreign companies or organizations operating within Vietnam. The typical validity period for this visa is 1 year, allowing for multiple entries.
• DN Visa: This visa is intended for personnel employed by Vietnamese companies that have received authorization from the Ministry of Labor to recruit foreign workers. Similar to the LD visa, the DN visa generally has a validity period of 1 year with multiple entries.
• LV1-LV2 Visa: These visas are issued to individuals working on behalf of the Vietnamese government, including diplomats, consular officers, and military personnel. The validity of LV1 and LV2 visas varies based on the nature of the individual's operations.

The visa application procedures vary depending where foreigners apply. In general:

• Foreigners applying from outside Vietnam must submit their application at a Vietnamese embassy or consulate in their home country. This submission should include supporting documents such as a passport copy, photographs, an invitation letter from the employer or service center in Vietnam (if applicable), and a health certificate (if applicable). Applicants are also required to pay the visa fee (usually $30), attend an interview if necessary, and will receive a decision regarding approval or rejection within 15 days.
• Foreigners applying from within Vietnam must submit their application at a local immigration office. This application should include supporting documents such as a passport copy (if not renewed), photographs (if not expired), an invitation letter from the employer or service center in Vietnam (if applicable), and a health certificate (if applicable). Applicants are also required to pay the visa fee (usually $30) and will receive a decision regarding approval or rejection within 15 days.

c. Temporary Residence Card and a Permanent Residence Card

In addition, foreigners need to apply for:

• Temporary Residence Card (TRC): This card allows foreigners to stay in Vietnam without needing to exit and re-enter while it is valid. It simplifies administrative processes such as opening bank accounts and obtaining insurance while ultimately saving time and costs associated with frequent visa renewals. Additionally, the TRC facilitates access to essential services like healthcare and education.
• Permanent Residence Card (PRC): This card is available to foreigners who have lived continuously in Vietnam for over 3 years or meet specific criteria. It offers renewable long-term residency of 5 to 10 years with full rights and responsibilities. PRC holders can enter and exit Vietnam without a visa, allowing for easier travel. Additionally, PRC holders can sponsor family members for entry into Vietnam.

2. Foreigners must investigate Potential Workplace before working in Vietnam

Hanoi and Ho Chi Minh City provide abundant employment opportunities across various industries, along with international schools, hospitals, and established foreigner communities – making them ideal for cultural immersion. While these vibrant cities offer lively amenities and nightlife, they also face challenges like congestion and high housing costs. Popular neighborhoods for English-speaking foreigners include Tay Ho in Hanoi and Binh Thanh in Ho Chi Minh City.

Some common locations for foreigners seeking a quieter lifestyle include mid-sized coastal cities such as Da Nang, Nha Trang, and Hoi An, especially during the rise of remote work opportunities.

The average rental prices for apartments in Vietnam are as follows:

• The rent for a 1-bedroom apartment without furniture will range from $600 - $650/month, with furniture from $650 - $850/month.
• The rent for a 2-bedroom apartment without furniture is from $650 - $800/month, with furniture from $1000 - $1500/month.
• The rent for a 3-bedroom apartment without furniture is from $900 to $1100/month, with furniture from $1,200 to $2,000/month.

High-end apartments may cost more but typically come with additional services as well as utilities and amenities around the rental area.

3. Foreigners must be aware of the Transportation Options before working in Vietnam

With over 65 million registered motorcycles as of 2020, which is approximately two-thirds of Vietnam's population, it is clear that motorbikes dominate transportation in the country.

Ho Chi Minh City and Hanoi feature extensive bus networks and metro systems that  offering convenient and cost-effective local transportation options. Additionally, ride-sharing applications like Grab provide on-demand private transportation, serving as convenient alternatives to traditional taxis which are also widely available. For those who wish to drive, it is essential to apply for a Vietnamese driving license according to local regulations.

4. Foreigners must investigate Financial Issues before working in Vietnam

a. Bank account

To open a bank account or apply for a credit card in Vietnam, it is necessary to have a temporary residence card and proof of employment, such as an employment contract. It is recommended to research banking options among local and international institutions to compare fees, exchange rates, and services. Once all required documentation is in order, the application process is relatively straightforward, requiring compliance with the bank's procedures and the payment of a small deposit.

For those interested in opening a business bank account, additional steps must be taken, including hiring a Legal Representative to co-sign the application and providing evidence of the business's legitimacy, such as a registered address in Vietnam, operational licenses, and tax return documentation.

b. Currency

The principal currency in Vietnam, the Vietnamese Dong (VND), is extensively accepted for routine transactions, including meals, transportation, entertainment, and basic goods. Although the stable US Dollar (USD) is also widely recognized, it is primarily used for larger transactions, such as healthcare expenses in select hospitals.

c. Tax compliance

Foreigners residing in Vietnam for more than 183 days are required to file taxes at the same rates as local citizens, while temporary residents can benefit from Vietnam's double tax arrangements.

Many large multinational companies with foreign employees manage income tax return filings on their behalf; however, self-employed individuals and those working for smaller firms must submit their tax returns personally. Personal income tax rates in Vietnam range from 5% to 35% based on income.

5. Foreigners must understand Insurance Issues before working in Vietnam

• Health insurance: Foreigners are required to prepare a certificate of COVID-19 vaccination, as it is mandatory before entering Vietnam. Additionally, foreigners often prefer private hospitals located in major cities such as Hanoi or Ho Chi Minh City since these facilities are more likely staffed with doctors who speak English or French. Therefore, obtaining Private Health Insurance is encouraged, especially for those residing outside urban centers. It is important to note that individuals moving from the United Kingdom or the European Union cannot use their GHIC or EHIC while in Vietnam.

• Car insurance: Foreigners also need compulsory civil liability insurance of motor vehicle owners if driving a vehicle within Vietnam.
• International Personal Property Insurance: To cover damage to property while moving to Vietnam.

6. Foreigners must prepare for the Cost of Living before working in Vietnam

The cost of living in Vietnam is generally considered low compared to many Western countries, with average expenses approximately 38% lower than those found in the UK. A comfortable lifestyle can be maintained with a monthly budget ranging from $700 to $1,200, which typically covers accommodation, utilities, food, transportation, and entertainment. In major cities like Ho Chi Minh City and Hanoi, a couple can enjoy a middle-class lifestyle for under $1,300 per month, while those living more frugally may manage around $500 monthly.

Living outside these urban centers, such as in Da Nang, Hoi An, or Nha Trang, can further reduce costs, with budgets around $800 to $1,100 allowing for a pleasant standards of living. Overall, Vietnam offers a range of affordable options suitable for various lifestyles and budgets.

7. Foreigners must investigate the Labor law and Regulations before working in Vietnam

According to Article 13 of the Labor Code 2019, a Labor Contract is an agreement between the employee and the employer, outlining the rights and obligations of both parties concerning employment, wages, working hours, and other working conditions. The contract type can be:

• Indefinite-term employment contract;
• Definite-term employment contract (less than 36 months);
• Seasonal or specific work employment contract (less than 12 months);

Some of the basic requirements employers must follow when hiring employees include:

• Employees must have a valid identity card or passport.
• Employees must have a good health condition and no criminal record.
• Employees must sign a written or electronic labor contract that specifies the scope of work, wages, job location, terms of the contract, occupational safety and hygiene conditions, social insurance contributions.
• Employees must undergo a medical examination before starting work.

a. Minimum wage

The minimum wage is defined as the lowest hourly wage that must be paid to an employee. It serves as a benchmark to ensure that the salary of an employee working for one hour does not fall below this minimum threshold. In Vietnam, the minimum wage per hour varies based on the specific region in which the employee is employed.

According to Resolution No. 17/2022/UBTVQH156, there are some examples of minium wages per hour in different regions:

b. Working hours

The working hours refer to the duration an employee spends performing their duties as stipulated in a labor contract. In Vietnam, there are specific regulations regarding working hours that both employers and employees are expected to adhere to:

• Normal working hours must not exceed eight hours per day or 48 hours per week.
• Overtime work is limited to a maximum of 12 hours per day and 40 hours per month.
• Night working hours are defined as the period from 22:00 to 6:00.
• Employees who exceed their normal working hours are entitled to receive compensation at a rate of at least double their standard hourly wage.

c. Holidays and Leave

Holidays and leave are entitlements provided to employees by their employers in accordance with their employment contracts or collective agreements. In Vietnam, certain public holidays are recognized and observed by all workers, irrespective of their sector or occupation. These holidays include:

In addition to public holidays, employees who have been with an employer for more than one year are entitled to fully paid annual leave as outlined below:

d. Labor contract disputes

Labor contract disputes can arise in various contexts, particularly when there are disagreements between employers and employees regarding the terms and conditions of employment. Here are key aspects to consider regarding labor contract disputes in Vietnam:

Common causes of labor contract disputes, including:

• Breach of Contract: Disputes can occur when either party fails to fulfill their obligations as outlined in the labor contract, such as not paying wages on time or not providing agreed-upon benefits.
• Termination Issues: Disagreements may arise regarding the legality of termination, whether it was justified, and if proper procedures were followed.
• Working Conditions: Conflicts may stem from inadequate working conditions, failure to adhere to safety regulations, or changes in job responsibilities without consent.
• Wage Disputes: Issues related to salary payments, including underpayment or discrepancies in wage calculations, often lead to disputes.
• Discrimination and Harassment: Claims of discrimination based on gender, nationality, or other factors can result in disputes.

Resolution mechanisms as follows:

• Negotiation: The first step in resolving a labor contract dispute is often direct negotiation between the employer and employee to reach an amicable solution.
• Mediation: If negotiation fails, mediation through a third party can help facilitate discussions and find a mutually acceptable resolution.
• Legal Action: If all other avenues fail, parties may resort to legal action by filing a complaint with the local labor authority or pursuing litigation in court.

Key considerations, including: 

• Documentation: Maintaining thorough documentation of all employment agreements, communications, and relevant incidents is crucial for both parties in a dispute.
• Legal Advice: Seeking legal counsel can help navigate the complexities of labor law and ensure that rights are protected throughout the dispute resolution process.

8. Foreigners must explore the Employment Opportunities before working in Vietnam

To enhance the chances of securing a good job in Vietnam, it is essential to have a clear understanding of the desired position, skills and qualifications, expected salary, and benefits. Additionally, researching market demand and the level of competition within the preferred field and location is crucial. Some of the most popular sectors that offer employment opportunities for foreigners in Vietnam include:

• Information Technology: Vietnam's booming IT industry necessitates a substantial number of skilled professionals, including developers, engineers, designers, analysts, testers, and project managers.
• Education: Vietnam has a significant population of youth in need of quality education and training. There is a high demand for teachers, trainers, tutors, and language instructors across various levels and subjects.
• Business: The emerging business sector in Vietnam calls for entrepreneurs, managers, marketers, accountants, lawyers, consultants, and sales personnel
• Tourism: With its rich culture and natural beauty attracting tourists from around the globe, Vietnam has a growing need for hospitality staff such as receptionists, tour guides, tour operators, interpreters, and customer service representatives.
• Healthcare: The healthcare sector in Vietnam is rapidly developing and requires numerous professionals, including doctors, nurses, pharmacists, dentists, therapists, and medical technicians.

In addition, establishing relationships with individuals working in one's field or industry, as well as those who can refer potential employers or opportunities, is essential. Various platforms can be utilized for this purpose, including:

• LinkedIn: LinkedIn is the largest professional social network globally. It allows users to create profiles showcasing their skills and experiences, connect with other professionals, join groups, participate in discussions, share content, post job openings, and apply for positions.
• Facebook: Facebook is the most popular social media platform in Vietnam. Users can join groups related to their field or profession, follow pages associated with employers or opportunities, and directly message individuals to request.

Aside from networking, various popular job search websites in Vietnam can be leveraged. These include:

• Indeed: Indeed is a widely recognized global job search engine that aggregates millions of job listings from various sources, including many opportunities available in Vietnam.
• TopCV: TopCV is one of the largest online CV platforms that assists users in creating professional resumes, showcasing their skills and experiences, applying for jobs, and receiving feedback.
• GrabJobs: GrabJobs is a prominent job posting platform in Vietnam that connects employers with candidates across multiple categories, including full-time, part-time, remote, technical, management, and entry-level positions.
• Vieclam24h.vn: Vieclam24h.vn is one of the largest online classifieds sites in Vietnam, offering a diverse range of categories such as jobs, real estate, vehicles, and services.
• Vietnamworks: Vietnamworks is among the largest online platforms dedicated to recruitment, employment opportunities, salary research, and career advice in Vietnam.
• CareerViet: CareerViet (was formerly known as CareerBuilder) is one of the leading global job boards, offering millions of job listings from thousands of companies worldwide, including numerous opportunities based in Vietnam.

9. Phong & Partners Law Firm specializes in resolving Employment Issues for foreign workers in Vietnam

Vietnam's labor law can be complex and challenging, impacting the job search process for both employers and foreign workers, who may encounter various legal and cultural barriers. This is why you need a reliable advisor who can help you navigate the labor law landscape in Vietnam.

With a team of lawyers and legal specialists who are well-trained, and have many years of experience in providing legal services to many individuals and enterprises, Phong & Partners Law Firm is increasingly trusted by the business community when they need professional advice, especially in employment issues.

Phong & Partners Law Firm shall assist you with various employment issues, including:

• Drafting, reviewing, and negotiating employment contracts and collective bargaining agreement;
• Providing advice on labor policies, procedures, and regulations;
• Representing and protecting employers and employees in labor disputes, arbitration, and litigation;
• Advising on the termination of employment contracts, severance pay, and unemployment benefits;
• Consulting on social insurance, health insurance, and unemployment insurance;
• And much more;

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