A Guide to Employing Foreign Workers in Vietnam: Obligations and Practical Compliance Points
Vietnamese Attorney
NEXORA LAW FIRM Managing Partner
Vietnamese Attorney
Mediator, Bankruptcy Trustee, and Outside Statutory Auditor
Table of Contents
01 - The Obligation to Publicly Announce Recruitment to Vietnamese Workers
02 - Regulations on the Management and Engagement of Foreign Workers
03 - Notification Obligations Concerning Employment Contracts with Foreign Workers
04 - Reporting Obligations Concerning the Employment Status of Foreign Workers
This article explains in detail the obligations and practical points companies must address when employing foreign workers in Vietnam. It covers the latest regulations on work permits, employment contracts, and reporting obligations for foreign nationals working in Vietnam.
Under Decree No. 152/2020/ND-CP (effective December 30, 2020) and Decree No. 70/2023/ND-CP (effective September 18, 2023, which partially amends and supplements Decree No. 152/2020/ND-CP), companies in Vietnam that employ foreign workers must fulfill the following obligations.
01 - The Obligation to Publicly Announce Recruitment to Vietnamese Workers
1.1. The Obligation to Protect Domestic Workers
Purpose: To protect employment opportunities for Vietnamese workers and ensure they have access to senior and specialized positions.
Effective date: Since January 1, 2024, before considering the hiring of a foreign worker, a company must first publicly announce the recruitment of the position concerned to Vietnamese workers.
1.2. Method of Announcing the Recruitment
Publication channels:
The e-portal of the Ministry of Labor, Invalids and Social Affairs (MOLISA) (Employment Department / Cục Việc làm)
The e-portal of the local Employment Service Center (managed by the provincial/municipal People's Committee)
1.3. Duration of the Recruitment Announcement
Announcement period:
The recruitment announcement must be published within 15 days before the intended date of submitting the report explaining the need to employ foreign workers to MOLISA or the local Department of Labor, Invalids and Social Affairs.
This is handled according to the jurisdiction of the province/city where the work will be performed.
1.4. Practical Points
Advance coordination of hiring plans: When planning to hire foreign workers, companies must factor in the obligation to first recruit Vietnamese workers and manage their schedule to include the 15-day announcement period.
Accuracy of the announcement content: The recruitment announcement must accurately and specifically state the position title, job description, required skills, salary conditions, and other details.
Retention of supporting records: Records evidencing that the recruitment announcement was made (e.g., screenshots or links to the posting) must be properly retained, as they may be required during the administrative process.
02 - Regulations on the Management and Engagement of Foreign Workers
2.1. The Obligation to Obtain a Work Permit
A foreign worker employed by a company in Vietnam must obtain one of the following:
A Work Permit
A Work Permit Exemption Certificate
This allows the company to demonstrate that its employment of the foreign worker is lawful and that it is properly managing the employment in compliance with labor law.
2.2. Actions Required upon Termination of the Employment Contract
When a foreign worker's employment contract is terminated, the company is required to:
Retrieve the Work Permit: Promptly retrieve the Work Permit from the foreign worker after termination.
Return the Permit: Return the retrieved Work Permit to the issuing authority (MOLISA or the local Department of Labor).
03 - Notification Obligations Concerning Employment Contracts with Foreign Workers
3.1. The Obligation to Enter into an Employment Contract
Under Article 11(3) and Article 18(3) of Decree No. 152/2020/ND-CP, the following obligations apply.
Where a foreign worker is employed under an employment contract, once the Work Permit has been obtained or renewed, the employer (company) and the foreign worker must enter into a written employment contract in accordance with Vietnamese labor law.
The employment contract must be signed before the foreign worker's scheduled start date.
3.2. The Obligation to Submit the Employment Contract
After the employment contract is signed, the employer (company) must submit the original or a notarized copy to the Department of Labor, Invalids and Social Affairs (Sở Lao động - Thương binh và Xã hội).
04 - Reporting Obligations Concerning the Employment Status of Foreign Workers
4.1. Periodic Reporting on Employment Status
Where a company employs foreign workers, it must submit the following reports in accordance with the deadlines and formats set out in Decree No. 152/2020/ND-CP and Decree No. 70/2023/ND-CP.
Reporting deadlines:
By July 5 each year: reporting on employment status for the first half of the year (January–June)
By January 5 of the following year: reporting on employment status for the full year (January–December)
Reporting periods covered:
First-half report: data from December 15 of the previous year through June 14 of the reporting year
Annual report: data from December 15 of the previous year through December 14 of the reporting year
4.2. Reporting Where a Foreign Worker Works Across Multiple Provinces/Cities
New rule: Where a foreign worker is employed by a single company but works across multiple provinces/cities, the following applies:
Reporting deadline: Report within 3 business days from the date the foreign worker begins work at the new location.
Reporting method:
Report electronically to the following authorities:
MOLISA
The Department of Labor, Invalids and Social Affairs (Sở Lao động - Thương binh và Xã hội) of each province/city where the foreign worker works