A work permit is a legal document that allows foreigners to work legally in Vietnam. Without a work permit, foreign workers and companies employing foreign workers may be subject to various forms of sanctions including fines and deportation. This article will provide an overview of Vietnamese laws related to work permits to provide businesses and foreign workers with the most comprehensive view.
Who must have a work permit?
Article 151.1(d) of the 2019 Labor Code (LLC) stipulates that one of the mandatory conditions for foreign workers to work in Vietnam is to have a work permit issued by a competent state agency in Vietnam.
According to Article 2.1 of Decree 152/2020, cases eligible for a license include:
– Performing labor contracts;
– Moving within an enterprise;
– Performing contracts or agreements on economics, trade, finance, banking, insurance, science and technology, culture, sports, education, vocational education and health;
– Contractual service providers;
– Offering services;
– Working for foreign non-governmental organizations and international organizations in Vietnam that are permitted to operate under the provisions of Vietnamese law;
– Volunteers;
– Persons responsible for establishing a commercial presence;
– Managers, executives, experts, technical workers;
– Participating in the implementation of bidding packages and projects in Vietnam;
Thus, foreign workers entering Vietnam to work in the above cases must apply for a work permit, unless they fall into some cases exempted from a work permit.
Cases exempted from a work permit
According to the provisions of Article 154 of the Labor Code and the guidance in Section 2, Chapter II of Decree No. 152/2020/ND-CP, cases of foreign workers working in Vietnam that are not subject to a work permit include:
Owners or capital contributors of limited liability companies with a capital contribution value of VND 3 billion or more.
Chairman of the Board of Directors or member of the Board of Directors of a joint stock company with a capital contribution value of VND 3 billion or more.
Head of a representative office, project or responsible for the operations of an international organization or foreign non-governmental organization in Vietnam.
Entering Vietnam for a period of less than 03 months to conduct service offerings.
Entering Vietnam for a period of less than 03 months to handle complex technical and technological incidents and situations that arise and affect or threaten to affect production and business that Vietnamese experts and foreign experts currently in Vietnam cannot handle.
Being a foreign lawyer who has been granted a license to practice law in Vietnam according to the provisions of the Law on Lawyers.
In cases where the provisions of international treaties to which the Socialist Republic of Vietnam is a member are specified.
Foreigners who marry Vietnamese people and live in Vietnam.
Moving within an enterprise within the scope of 11 service sectors in Vietnam’s service commitments to the World Trade Organization, including: business, information, construction, distribution, education, environment, finance, healthcare, tourism, culture, entertainment and transportation.
Entering Vietnam to provide professional and technical consulting services or perform other tasks serving the research, construction, appraisal, monitoring and evaluation, management and implementation of programs and projects using official development assistance (ODA) sources according to regulations or agreements in international treaties on ODA signed between competent authorities of Vietnam and foreign countries.
Being granted a license by the Ministry of Foreign Affairs to operate information and press in Vietnam according to the provisions of law.
Being sent to Vietnam by competent agencies and organizations of foreign countries to teach and conduct research at international schools under the management of foreign diplomatic missions or the United Nations; facilities and organizations established according to agreements that Vietnam has signed and participated in.
Volunteers are foreign workers who work in Vietnam voluntarily and without salary to implement international treaties to which the Socialist Republic of Vietnam is a member and have confirmation from a foreign diplomatic mission or international organization in Vietnam.
Entering Vietnam to work as a manager, executive director, expert or technical worker for less than 30 days and no more than 3 times in 1 year.
Entering Vietnam to implement international agreements signed by central and provincial agencies and organizations in accordance with the provisions of law.
Students studying at schools and training institutions abroad that have agreements to practice in agencies, organizations and enterprises in Vietnam; interns and trainees on Vietnamese ships.
Relatives of members of foreign representative agencies in Vietnam are allowed to work in Vietnam according to the provisions of international treaties to which the Socialist Republic of Vietnam is a member.Having an official passport to work for a state agency, political organization, or socio-political organization.
Person responsible for establishing a commercial presence.
The Ministry of Education and Training has certified that foreign workers enter Vietnam to teach or conduct research.
Other cases as prescribed by the Government.
Penalties for cases without a work permit
Clause 3 and Clause 4, Article 32 of Decree 12/2022/ND-CP stipulate that when a foreign worker enters Vietnam to work but does not have a work permit and is not exempt from a work permit, both the foreign worker and the person employing the foreign worker must be subject to corresponding penalties. Specifically:
– For foreign workers:
+ Fine: from VND 15,000,000 to VND 25,000,000;
+ Additional penalty: Expulsion.
– For companies and organizations employing foreign workers:
+ Fine from VND 30,000,000 to VND 45,000,000 for violations involving 01 to 10 people;
+ Fine from VND 45,000,000 to VND 60,000,000 for violations involving 11 to 20 people;
+ Fine from VND 60,000,000 to VND 75,000,000 for violations involving 21 people or more.
In general, a work permit is an extremely important legal document for foreign workers who want to work in Vietnam. Therefore, both foreign workers and businesses employing foreign workers need to pay attention to strictly complying with the regulations on work permits to avoid unnecessary risks as well as ensure a safe and effective working environment.