Vietnam Work Permit Decree: Key Changes and Streamlined Process

The Vietnamese government has ushered in a new era for foreign nationals seeking employment within its borders. With the issuance of Decree No. 70/2023/ND-CP, significant and welcome changes have been made to the work permit process, aiming to streamline operations, attract top-tier talent, and support key economic sectors. This marks the first major structural overhaul of Vietnam’s immigration system since 2021.

For businesses and foreign employees, understanding these changes is crucial for ensuring compliance and leveraging the new efficiencies. This article breaks down the key modifications and their practical impacts.

Decree No. 70/2023/ND-CP (Vietnamese Law Portal)

A Closer Look at the Key Changes to the Vietnam Work Permit

The new decree introduces a multitude of revisions designed to simplify the application journey. Here are the most impactful changes.

Eased Labor Market Test Requirements

One of the most significant changes involves the relaxation of the labor market test, a previously cumbersome step.

• Change: Job postings are now only mandatory for foreign nationals being hired locally under the direct hire scheme. The requirement has been removed for intra-corporate transferees (ICTs). Furthermore, the mandatory posting period has been slashed to just five business days from the previous 15 calendar days. Companies also now have the flexibility to post on various platforms, including their own internal career pages, instead of being limited to a government portal.

• Impact: This drastically reduces administrative burden and processing times for ICTs. The shorter posting period and flexible platform options accelerate the overall timeline for local hires as well.

Consolidated and Eliminated Process Steps

The decree successfully streamlines the application procedure by integrating and removing several steps.

• Change: The previously separate "job position approval" application is now integrated directly into the work permit application and is only required for local hires. Applications can now be submitted simultaneously with the police clearance certificate, and the semi-annual reporting requirement has been completely abolished.

• Impact: This consolidation simplifies the process, reduces paperwork, and shortens the overall lead time to obtain a work permit. Employers must still maintain proper records internally.

New Work Permit Qualifying Criteria

The eligibility criteria for experts and technical workers have been expanded, allowing a broader range of professionals to qualify.

• Change:

  • Experts: Now require a university degree and at least two years of experience (reduced from three). Those in priority sectors (finance, science, technology, innovation) need only one year of experience.

  • Technical Workers: Now require at least one year of training and two years of experience (reduced from three), or three years of experience (reduced from five) without formal training.

• Impact: More foreign nationals will now meet the criteria for a work permit, making it easier for companies to bring in skilled talent, especially in Vietnam's targeted priority industries.

Revised Work Permit Exemption Categories

The rules for those exempt from needing a full work permit have been liberalized.

• Change: The previous three-trip limit for short-term work is gone. Exempt individuals can now work for up to 90 cumulative days within a calendar year (January-December). Spouses of Vietnamese nationals are now fully exempt from needing a Work Permit Exemption Certificate. Experts in priority sectors also now qualify for an Exemption Certificate.

• Impact: This offers immense flexibility for short-term business activities. However, spouses may face challenges proving their right to work without an official certificate. The new pathway for experts in key sectors allows for faster deployment.

Other Notable Changes

• Multiple Locations: Work permits for employees working at multiple sites are now processed by the local Provincial People’s Committee where the company's head office is located, not the Ministry of Home Affairs.

• Health Certificates: Foreign-issued health certificates are only accepted if Vietnam has a mutual recognition agreement with that country. The list of such countries is pending official publication, which may currently cause some uncertainty.

• Clear Timelines: The decree sets clear application windows (e.g., 60 days before start date for new permits) and processing times (10 business days for new applications, 5 for renewals).

Background and Strategic Goals

This comprehensive reform is part of the Vietnamese government's broader goal of creating a more efficient and effective public administration system. The changes specifically prioritize key sectors identified as crucial for transitioning to a more diversified and technologically advanced economy. By easing the Vietnam work permit process, the government aims to attract high-level talent, investors, and experts to fuel growth in these priority fields.

For the latest updates and detailed guidance on navigating these new regulations, be sure to visit VisasUpdate.com.