Vietnam Work Permit Changes Decree 219 and Expat Exemptions

What are the key employment law sources in Vietnam?

The main employment rules in Vietnam come from the Labor Code 2019 and its guiding decrees, complemented by social insurance, trade union, and immigration regulations. For foreign staff, Decree 219 (effective August 2025) now governs work permits, replacing the older Decree 152 regime.

• Core statutes
  • Labor Code 2019 - central statute for employment relationships, hours, leave, termination, discipline.
  • Decree 145/2020/ND-CP - detailed guidance on working conditions, HR procedures, internal rules.
  • Social Insurance Law, Law on Health Insurance, Law on Employment - govern social, health, and unemployment insurance schemes.
  • Law on Trade Unions and related guidelines - union structures, dues, and collective bargaining.
  • Decree 219/2025/ND-CP (title abbreviated) - regulations on foreign workers in Vietnam and management of Vietnamese working for foreign employers, replacing Decree 152/2020 and its amendments.
• Authorities you will deal with
  • MOLISA (Ministry of Labour - Invalids and Social Affairs) - drafts and oversees labor and foreign worker policy.
  • DoLISA (provincial Departments of Labour) - approve foreign labor demand, issue work permits, inspect employers.
  • Vietnam Social Security (VSS) - administers social, health, and unemployment insurance.
  • Tax departments - individual income tax and payroll compliance.
  • Courts and labor arbitration councils - resolve disputes where conciliation fails.
• Practical point: administrative inspections and document checks are common. You should maintain clean, bilingual files for contracts, payroll, timekeeping, and foreign worker documentation.

What types of employment contracts can employers use in Vietnam?

Vietnam allows only two main types of employment contract: indefinite term and fixed term of up to 36 months. All core employment terms must be in a written contract (often bilingual) that aligns with statutory minimums.

Permitted contract types

• Indefinite term contract
  • No fixed end date.
  • Strongest protection for employees, hardest to terminate.
• Fixed term contract (up to 36 months)
  • Must state a specific expiry date, not longer than 36 months.
  • You can use only one more fixed term renewal. After that, if the employee continues working, the contract automatically converts to indefinite term.

Form and language

• Written form is required for almost all employees, including foreigners. Verbal contracts are allowed only for very short jobs (under 1 month) and are risky.
• Bilingual contracts (Vietnamese + English or other language) are standard in international businesses. In case of conflict, authorities will normally favor the Vietnamese text.
• Electronic contracts are permitted if they comply with e-transaction rules and both sides agree.

Mandatory contents

• Job title and location
• Contract type and term
• Salary structure (base, allowances, bonus principles)
• Working hours and rest breaks
• Leave entitlements
• Social insurance and other benefits
• Internal work rules reference
• Dispute resolution and governing law (Vietnamese law for Vietnamese employment)

Probation and non-competes

• Probation
  • Maximum 180 days for senior managers, 60 days for jobs requiring college or higher qualifications, 30 days for intermediate-level jobs, 6 days for simple jobs.
  • You can put probation as a separate agreement or within the main contract. If the employee passes probation, the main contract takes effect automatically.
• Non-compete clauses
  • Common in contracts for managers and key specialists.
  • Vietnamese law does not have a clear statutory framework, and courts scrutinize broad or unpaid restraints.
  • Use narrow scope (time, geography, industry) and consider a post-termination payment if you want enforceability.

What are the standard working hours, overtime, and leave entitlements in Vietnam?

Normal working time in Vietnam is up to 8 hours per day and 48 hours per week, with strict caps on overtime. Employees receive paid annual leave (starting at 12 days per year), public holidays, and various family and maternity leaves.

Working hours and rest

• Standard hours
  • Up to 8 hours per day and 48 hours per week for normal working conditions.
  • You may choose 5.5 or 6 working days per week, but still must respect weekly rest.
• Weekly rest: At least 24 consecutive hours off per week, usually Sunday.
• Night work: Typically between 22:00 and 06:00; additional premiums apply.

Overtime (OT)

• Caps (current framework)
  • Daily total (normal hours + OT) must not exceed 12 hours.
  • Monthly OT is generally capped at 40 hours.
  • Yearly OT is capped at 200 hours, extendable to 300 hours for specific sectors and jobs (e.g., manufacturing, textiles, electronics, certain services).
• Rates (relative to normal hourly wage)
  • At least 150% for overtime on normal working days.
  • At least 200% for overtime on weekly rest days.
  • At least 300% for overtime on public holidays (plus the paid holiday itself).
  • Night work typically attracts an extra 30% premium, with higher multipliers if it is also overtime.
• You must obtain the employee's consent for overtime in most situations and keep detailed OT records.

Leave entitlements

• Paid annual leave
  • Minimum 12 working days per year for employees with normal working conditions.
  • More for seniority and hazardous jobs:
    • +1 day for every 5 years of service with the same employer.
    • +2-4 days annual leave for employees in heavy, hazardous, or dangerous jobs (depending on classification).
  • You must pay untaken annual leave on termination.
• Public holidays (fully paid, not counted against annual leave)
  • New Year, Lunar New Year (Tet, several days), Liberation Day, International Labor Day, National Day, and others. Total is typically around 11-13 days per year depending on calendar decisions.
• Sick leave
  • Paid by the social insurance fund, not the employer, for insured employees.
  • Days per year depend on social insurance status and working conditions.
• Maternity and paternity
  • Maternity leave: 6 months paid by social insurance; longer in certain multiple-birth cases.
  • Paternity leave: 5-14 days, depending on circumstances, also via social insurance.
• Personal leave: marriage of the employee, death of close relatives, etc., with statutory paid or unpaid days.

How are salaries, bonuses, and mandatory insurance contributions handled in Vietnam?

Employers must pay at least the regional minimum wage and make mandatory social, health, and unemployment insurance contributions on eligible salaries. Bonuses are largely discretionary but often driven by contract, company policy, and collective agreements.

Salary structure and payment

• Minimum wage
  • Vietnam applies a regional minimum wage by location (Region I to IV). Ensure your base salary meets or exceeds the regional rate for the workplace location.
• Pay frequency: usually monthly; you may pay bi-weekly but must respect Labor Code timing rules.
• Salary components
  • Base salary.
  • Allowances (position, housing, responsibility, mobility, etc.).
  • Other supplemental benefits (seniority, hardship, shift, performance incentives).
• Always clarify in writing which components form the basis for OT, social insurance, and bonus calculations.

Mandatory insurance contributions

Vietnam uses a shared contribution system between employer and employee, paid to Vietnam Social Security (VSS). Rates below are indicative of the standard framework; authorities periodically adjust them.

• Contribution base: typically the monthly salary stated in the labor contract, including some allowances, but capped at 20 times the Government basic salary.
• Foreign employees are subject to social and health insurance if they hold work permits and labor contracts with Vietnamese entities; unemployment insurance does not apply.

Bonuses and 13th month

• 13th-month salary is customary in many sectors but not legally mandatory unless:
  • Stated in the labor contract or company policy, or
  • Negotiated in a collective bargaining agreement.
• You should define bonus schemes in:
  • A written bonus regulation issued by the employer, and
  • Refer to it in contracts and internal rules.
• Once consistently paid, a bonus can be argued as an implied entitlement, so HR should document that bonuses are discretionary and performance-based where appropriate.

How can employers legally terminate employment in Vietnam?

You can terminate employees in Vietnam only on specific statutory grounds and must follow strict procedures, including notice and, in many cases, severance or redundancy pay. Unlawful termination can lead to reinstatement orders and significant back pay.

Common lawful grounds

• Mutual agreement: both parties sign a termination agreement.
• Expiration of fixed term contract: you decide not to renew and give proper notice.
• Unilateral termination by employer on legal grounds, such as:
  • Regularly failing to perform the job according to assessed criteria.
  • Long-term illness or incapacity beyond statutory limits.
  • Business restructuring, technological changes, or economic reasons (with redundancy procedures).
  • Closure of the enterprise.
• Disciplinary dismissal for serious misconduct (theft, disclosure of secrets, serious harm, etc.) after proper disciplinary process.

Key procedural points

• Notice periods (for lawful unilateral termination by employer)
  • At least 45 days for indefinite term contracts.
  • At least 30 days for fixed term contracts of 12-36 months.
  • At least 3 working days for contracts under 12 months.
• Redundancy / restructuring
  • You must prepare a labor utilization plan and consult with the grassroots trade union (if any).
  • You must pay job-loss allowance for qualifying employees (separate from severance allowance).
• Severance allowance
  • Pay to employees who worked at least 12 months and are not dismissed for serious misconduct, typically equal to half a month's salary per year of service, minus periods already covered by unemployment insurance.
• Disciplinary process
  • Must follow internal labor rules registered with DoLISA.
  • Involves advance notice of the hearing, union participation (if any), minutes, and a formal decision.

Risks of unlawful termination

• Court or arbitrator can order:
  • Reinstatement and back pay from termination date to reinstatement date.
  • Payment for unused leave and social insurance contributions.
  • At least 2 months' salary compensation even if the employee does not wish to return.
• Inspectors may impose administrative fines and require corrective actions.

How do trade unions and collective relations work in Vietnam?

Vietnam follows a union system led by the Vietnam General Confederation of Labour (VGCL), and many employers must interact with grassroots trade unions. Collective bargaining and internal rules must align with statutory minimums but can provide higher benefits.

Union structures

• Grassroots trade union
  • Set up at company level when employees request it.
  • Affiliated with VGCL, not independent unions in the Western sense.
• Employers must not obstruct union formation and must facilitate legitimate union activities.

Collective bargaining agreements (CBAs)

• CBAs can grant better working conditions than the Labor Code or company policies.
• Employers and unions negotiate on wages, bonuses, working hours, and other terms.
• You must file CBAs with local labor authorities.

Internal labor regulations (ILRs)

• Companies with 10 or more employees must issue written ILRs.
• ILRs must be registered with DoLISA and are the legal basis for discipline and many HR procedures.
• Align ILRs with actual practice and with your contracts, bonus rules, and CBAs.

How do work permits for foreign employees in Vietnam operate under Decree 219?

Foreigners working in Vietnam normally require a work permit (or exemption) issued by DoLISA, followed by the appropriate visa or temporary residence card. From August 2025, Decree 219 governs this system and replaces the older Decree 152 framework.

Important note: my training data does not yet include the full official text of Decree 219, so the high-level description below is based on how Vietnam has traditionally structured work permits and on the Government's stated aim to streamline procedures. You should confirm exact document lists and timelines with up-to-date Vietnamese counsel.

Who needs a work permit?

• Foreigners working in Vietnam in one of the following categories:
  • Experts / specialists.
  • Managers and executives.
  • Technical workers.
  • Other positions defined in guiding rules.
• Common exemptions (consistent with prior practice) include:
  • Members of Boards of Directors or company owners in certain structures.
  • Short-term assignments under specific time limits for urgent service or equipment repair.
  • Internal transferees of foreign enterprises in WTO-scheduled service sectors.

Typical process to obtain a work permit

1. Determine job position and category (expert, manager, technical, etc.) and whether any exemption applies.
2. File foreign labor demand explanation with DoLISA, unless your sector or position is exempted under Decree 219.
3. Gather documents:
   • Company documents (IRC/ERC, charter, introduction letter).
   • Applicant's passport, photos.
   • Qualifications and experience evidence (degrees, experience letters, certificates).
   • Criminal record certificate and health check issued within prescribed time limits.
4. Submit work permit application to DoLISA within the statutory timeline before the expected start date.
5. Receive work permit and then apply for a corresponding visa or temporary residence card at the immigration authority.
6. Sign a labor contract that is consistent with the work permit and register social insurance if applicable.

Indicative government fees in Vietnam

Actual fees vary by province and are periodically adjusted, but the table below gives rough ranges.

• These are official fees only. You should budget for translation, legalization, health checks, and advisory fees on top.

Has Decree 219 in Vietnam relaxed the "expert" definition and degree requirement?

Vietnamese law has long recognized both degree-based and experience-based routes to classify foreign experts and technical workers, but in practice many authorities informally insisted on degrees. Decree 219 is designed to give more explicit weight to substantial experience, so a university degree is less of a practical bottleneck for technical and specialist roles, although it remains the cleanest route.

Because my data does not yet include the final text of Decree 219, treat the points below as a framework for discussion with local counsel, not as a verbatim reading of the decree.

What Decree 152 previously required

• Under Decree 152 and its amendments:
  • Experts typically needed:
    • A university degree or higher relevant to the job, plus at least 3 years of relevant experience, or
    • A practice certificate and at least 5 years of relevant experience, or
    • Special recognition in unique cases.
  • Technical workers typically needed:
    • At least 1 year of formal training plus 3 years of relevant experience, or
    • At least 5 years of relevant experience in the job without formal training.
• Although the law did allow experience-only routes, many DoLISA offices:
  • Strongly preferred candidates with relevant diplomas.
  • Questioned or rejected "experience-only" dossiers, especially for white-collar roles.

The new "experience over degree" direction under Decree 219

• Policy statements around Decree 219 emphasize:
  • Fixing bottlenecks where highly skilled, non-degreed professionals (for example in IT, manufacturing, and trades) could not get permits.
  • Clarifying that solid, verifiable experience can qualify a foreigner as an expert or technical worker, even without a university degree.
• In practice, you should expect:
  • Experts: two tracks will continue:
    • Degree + experience track - easiest and fastest path where you can show a relevant degree and several years of experience.
    • Experience-only track - specifically recognized for candidates with longer or higher-level experience, particularly in industries where practical skill trumps formal education.
  • Technical workers: Decree 219 is likely to lean even more on:
    • Experience-only pathways, supported by detailed employment certificates and possibly skills tests or certifications.

What HR and expats should do now

• Assume that a degree is helpful but not strictly mandatory for technical and many expert roles, provided you can show:
  • Detailed employment certificates on company letterhead,
  • Clear job descriptions, and
  • Consistent career progression over several years in the relevant field.
• For critical candidates without degrees:
  • Prepare a strong narrative of their skillset, including portfolios, certifications, references, and documented achievements.
  • Engage with counsel to select the most appropriate category (expert vs technical worker) and build a dossier that matches Decree 219's wording.
• For group mobility programs:
  • Update your global job taxonomy so Vietnamese filings clearly map to roles recognized as expert/technical under Decree 219.

Has Decree 219 removed the local recruitment requirement for foreign workers in Vietnam?

Under the previous Decree 152 framework, employers often had to advertise positions for Vietnamese workers first and prove a lack of suitable local candidates, which delayed foreign hires. Decree 219 aims to ease this by narrowing when advertisement is required and carving out broader exemptions for genuine skills-shortage sectors, though you must check the exact sector list and conditions in the final text.

What the old "local recruitment" rule looked like

• Employers usually had to:
  • Post the job on a government-approved job portal or similar channel for at least 15 days.
  • Document that no suitable Vietnamese candidate was available.
  • Submit this evidence with the foreign labor demand explanation to DoLISA before seeking a work permit.
• This caused issues for:
  • Time-sensitive projects where waiting 15+ days was not feasible.
  • Sectors where the skill shortage was obvious (niche IT, high-end manufacturing, foreign-language teaching, etc.).

How Decree 219 is changing the landscape

Although I do not have the full operative text of Decree 219, government communications around its adoption point to several likely trends:

• Narrower advertisement requirement
  • Local recruitment steps are expected to apply more selectively, not across all roles.
  • Authorities may focus the requirement on lower-skilled or easily localized positions.
• Sector-based or role-based exemptions
  • High-tech, digital, advanced manufacturing, and key managerial roles are strong candidates for expanded exemptions.
  • Some projects designated as strategically important or in shortage occupations may bypass or shorten the advertisement step.
• More standardized documentation
  • Instead of ad hoc evidence, Decree 219 is likely to define a clearer set of forms and declarations for employers to confirm the need for foreign workers.

Practical strategies under Decree 219

• Segment your foreign roles:
  • Group jobs into: clearly localizable roles, specialized technical roles, and senior management/strategic roles.
  • Expect heavier justification for the first group and lighter, more formulaic justification or exemptions for the latter two.
• Refresh your recruitment SOPs:
  • Update internal checklists to reflect which roles still require prior advertisement under Decree 219.
  • Align your timelines so job posting and foreign labor demand explanations fit project schedules.
• Document real efforts:
  • Even when not strictly required, keeping evidence of efforts to hire and train Vietnamese staff strengthens your position in inspections and renewals.

What happens to work permits issued under the old Decree 152 in Vietnam?

Work permits granted under Decree 152 remain valid until their stated expiry dates; they are not automatically invalidated by Decree 219. However, any renewal, extension, or change in position after Decree 219 takes effect must comply with the new rules.

Typical transitional treatment

While I cannot quote Decree 219's exact transitional articles, Vietnam usually follows this pattern when replacing major decrees:

• Existing permits remain valid
  • Foreign employees can continue working until the permit expiry date, provided they respect all conditions (employer, position, location).
• Renewals and changes follow new law
  • If you renew a permit, change the job title, transfer the employee to another entity, or extend beyond the original term, Decree 219 requirements will apply.
• Pending applications
  • Applications filed shortly before August 2025 could be processed:
    • Either under Decree 152 (if the authority decides to apply the old rules to pending cases), or
    • Shifted to Decree 219 standards if transitional provisions so require.

Action points for HR and expat managers

• Map your foreign workforce:
  • List all foreign employees with permit expiry dates, job titles, and permit categories (expert, manager, technical worker).
• Plan renewals early:
  • Start renewal planning at least 6-9 months ahead, especially for non-degreed staff or roles likely to attract scrutiny.
• Check if reclassification is beneficial:
  • Some employees previously treated as "technical workers" under Decree 152 might more cleanly qualify as "experts" based on experience under Decree 219.
• Clean up documentation:
  • Gather fresh experience letters, updated job descriptions, and internal organizational charts that match the new categories.

When should employers in Vietnam hire a labor lawyer or immigration expert?

You should involve a Vietnamese labor or immigration expert whenever you restructure your workforce, hire or renew multiple foreign employees, or face potential disputes or inspections. Early advice typically costs less than fixing a non-compliant structure after the fact.

• Key moments to seek advice
  • Setting up or expanding operations and drafting your first Vietnam employment contracts and internal labor regulations.
  • Designing salary, bonus, and benefits packages for senior managers and expats.
  • Planning layoffs, redundancy programs, or major organizational changes.
  • Handling disciplinaries for serious misconduct or performance-related terminations.
  • Filing the first batch of work permits under Decree 219, especially for non-degreed specialists or complex group structures.
  • Responding to labor inspections or employee complaints.
• What a good advisor will do
  • Translate the legal rules into practical HR processes, templates, and checklists.
  • Pre-review your foreign labor demand and work permit dossiers for risk areas.
  • Help you structure contracts and policies to withstand scrutiny while staying commercially workable.

What are the next steps for HR and expat managers operating in Vietnam?

HR leaders should update their contract templates, internal procedures, and foreign hiring strategies to align with Decree 219 and the existing Labor Code framework. A focused audit and a clear internal playbook will reduce delays, refusals, and disputes.

1. Audit your current documentation
   • Review all employment contracts, ILRs, and bonus policies for consistency with the Labor Code 2019.
   • Verify that your OT practices, leave tracking, and social insurance registrations match statutory rules.
2. Map and categorize foreign roles
   • Create a matrix of all foreign positions by category (expert, manager, technical worker) under Decree 219.
   • Identify roles where you rely on experience rather than degrees and flag them for enhanced documentation.
3. Redesign your foreign hiring workflow
   • Update checklists for foreign labor demand, advertisement (where still required), and work permit steps.
   • Set internal deadlines so business managers know when they must lock job descriptions and candidate details.
4. Train local HR and line managers
   • Run short training on termination rules, overtime caps, and leave entitlements.
   • Explain the new Decree 219 logic so managers understand when "experience over degree" can work and what evidence they must provide.
5. Engage with counsel on Decree 219 specifics
   • Ask for a written summary of Decree 219, highlighting:
     • Exact criteria for experts and technical workers using experience-only paths.
     • Updated local recruitment / advertisement rules and sector exemptions.
     • Transitional provisions for permits issued under Decree 152.
   • Build that guidance into your internal SOPs and global mobility policies.