What is a Work Permit? Latest requirements and procedures for applying for a work permit.

Are you looking to recruit international staff but are unsure what a Work Permit is? Work permit A Work Permit, also known as a Work Permit, is a mandatory legal document issued by a competent state agency in Vietnam, allowing foreigners to work legally in Vietnam. Without this certificate, both the sponsoring company and the foreign worker face severe administrative penalties. This article will provide detailed guidance on the conditions, required documents, and the latest application process to help businesses optimize their personnel sponsorship process.

What is a Work Permit?

A work permit is a document confirming that a foreign worker is legally permitted to work in Vietnam. This certificate specifically records the worker's personal information, including full name, nationality, passport number, name of the sponsoring company, job title, and duration of employment.

Currently, the authority to issue work permits rests with the Ministry of Labour, Invalids and Social Affairs or the Department of Labour, Invalids and Social Affairs of provinces and centrally-administered cities. This document plays a role in ensuring that foreign workers are employed in the positions they have registered for and in supporting authorities in controlling the domestic labor market.

Who is required to apply for a work permit in Vietnam?

Based on the provisions of Article 151 of the 2019 Labor Code, foreign workers wishing to work in Vietnam are required to possess a work permit, except in cases exempted by law. The main groups of foreign workers include:

• Foreigners work under direct employment contracts with employers in Vietnam.
• Internal personnel transfers within a company with a commercial presence in Vietnam include transfers from the parent company overseas to its domestic branch.
• Individuals entering Vietnam to fulfill contracts or agreements related to economics, trade, finance, banking, insurance, science and technology, culture, sports, education, or healthcare.
• Foreign experts must have a university degree or higher and at least three years of relevant work experience in Vietnam for the position they are expected to assume.
• Technical workers must have at least one year of specialized technical or other training and at least three years of work experience in a related field.
• Managers and executives are directly involved in managing and operating the business apparatus of the guaranteeing enterprise.

For all these groups, the company employing foreign workers is responsible for preparing the necessary documents and handling the administrative procedures with the relevant government agencies.

Cases where work permits are not required.

Although possessing a work permit is mandatory for most foreign personnel, Vietnamese law still stipulates certain special cases that are exempt in order to encourage investment and streamline administrative procedures. Common cases exempt from work permits currently include:

• Foreign investors Being the owner or contributing member of a limited liability company with a contributed capital value of three billion VND or more.
• Foreign nationals who are the Chairman of the Board of Directors or a member of the Board of Directors of a joint-stock company with a minimum capital contribution of three billion VND or more.
• Heads of representative offices, project managers, or branch managers of international organizations and non-governmental organizations in Vietnam.
• Workers enter Vietnam for a period of less than three months to offer services or to handle urgent, complex technical or technological issues that cannot be resolved by domestic workers.

Businesses employing workers who are exempt must apply to the labor management agency for a document confirming that they are not subject to the work permit requirement. This procedure must be completed at least ten days before the foreign worker begins employment.

Distinguishing between a work permit and a work visa.

To avoid unnecessary mistakes during the preparation of residency and work permits, employers and foreign employees need to clearly distinguish between work permits and visas. These two types of documents have completely different legal natures and are administered by different authorities.

Table Title: Table Distinguishing the Legal Nature Between Work Permits and Work Visas

Through the comparison table above, we can see that these two types of documents complement each other closely. A work permit is the most solid legal basis for immigration authorities to consider granting work visas or long-term temporary residence cards to foreigners. Without a valid work permit, a work visa will not be granted or cannot be renewed, forcing foreigners to leave the country when their short-term stay expires.

Requirements for applying for a work permit for foreigners.

For the work permit application process to proceed smoothly, foreign workers must fully meet four basic groups of conditions strictly stipulated in the Vietnamese labor law system, including:

• Workers must be at least eighteen years old and have full legal capacity to be held responsible for their actions before the law.
• Foreign nationals are required to have sufficient physical fitness and health suitable for the requirements of each specific job, as certified by hospitals licensed according to regulations of the Ministry of Health.
• The worker must have no prior criminal record, not be currently serving a sentence or have not had their criminal record expunged, and not be currently under criminal investigation under Vietnamese or foreign law.
• Workers must demonstrate their actual professional qualifications by providing relevant diplomas, training certificates, and documentation confirming practical experience from overseas organizations.

What documents are required for a work permit application?

Preparing complete and accurate documentation from the outset is a crucial factor determining the success or failure of this administrative procedure. According to Article 9 of Decree 152/2020/ND-CP, the application for a work permit for foreigners includes the following documents:

• The employer's application for a work permit is drafted according to Form No. 11/PLI issued in conjunction with the government's guiding decrees.
• A certified copy of a passport or other valid international travel document that is still in effect according to current law.
• A health certificate or medical examination report is valid for twelve months and must be issued by an authorized medical facility.
• The criminal record certificate must be issued no more than six months prior to the date of application. Either a foreign-issued criminal record certificate or a first-issued criminal record certificate issued by a Vietnamese judicial authority may be accepted.
• Documents proving the applicant's status as a manager, executive director, expert, or technical worker must be legally consularly legalized, translated into Vietnamese, and notarized by a competent judicial notary.
• Two color portrait photos, measuring four by six centimeters, taken against a white background, with the head uncovered, without colored glasses, and taken within the last six months.

The latest work permit application process

The procedure for applying for a work permit for foreign workers follows the following strict four-step process:

• Step one: Businesses must publicly post job openings for Vietnamese workers for positions intended for foreign workers at least thirty days before the planned recruitment date on the Department of Employment's electronic portal.
• Step two: Businesses submit a report explaining their need to employ foreign workers to the Ministry of Labour, Invalids and Social Affairs or the provincial People's Committee at least fifteen days before the expected date of employment.
• Step three: The business submits a complete application for a work permit to the local Department of Labor, War Invalids and Social Affairs where the foreigner will be working at least fifteen days before the foreigner starts working.
• Step four: Within five working days of receiving all valid documents, the competent authority will issue the original work permit to the enterprise. In case of refusal to issue, the authority will respond in writing and clearly state the specific reasons.

To optimize time and avoid complex administrative paperwork errors, many businesses in Vietnam often opt for professional consulting solutions. The team of experts at MAN – Master Accountant Network We assist in verifying the legality of foreign diplomas, provide guidance on certified translations, and work directly with labor management agencies on behalf of businesses to expedite the licensing process.

How much does it cost to get a work permit?

The total cost to obtain a work permit for a foreigner includes state administrative fees and related document preparation costs. The administrative fee payable to the local government for new issuance, renewal, or re-issuance of a work permit ranges from four hundred thousand dong to one million dong per application, depending on the regulations of the Provincial People's Council.

In addition to administrative fees, businesses and employees need to budget for actual expenses incurred during the application process. These expenses include medical examination fees at designated hospitals, fees for requesting criminal record certificates, notarized translation fees, and consular legalization fees for documents sent from abroad.

If using external professional consulting firms, the cost will include additional legal consulting service fees to help businesses save time and avoid unnecessary expenses caused by repeated rejections of documents.

How long is a work permit valid for?

The validity period of a newly issued work permit is determined by the duration of the expected employment contract, the duration of the document assigning the worker to work in Vietnam, or the duration of the ongoing project. According to current regulations, the maximum validity period for a newly issued work permit is two years.

When a work permit is about to expire, if the business still needs to employ foreign workers, it must renew the work permit. A work permit can only be renewed once, with a maximum renewal period of two years. Upon expiration of this renewal period, the business is required to go through the entire process of applying for a new work permit from scratch if it wishes to continue employing the workers.

What is a TRC work permit and how is it related to a work permit?

A temporary work permit, often abbreviated as TRC and designated as LD1 or LD2, is a special type of identification document issued by immigration authorities This temporary residence card grants foreigners permission to reside permanently in Vietnam. It serves as a visa substitute, allowing foreign workers to enter and exit Vietnam multiple times conveniently without needing to repeatedly apply for short-term visas.

The connection between the TRC (Temporary Residence Permit) and the work permit is very close. A legally valid work permit is a mandatory document and the most crucial basis for immigration authorities to consider granting a temporary residence permit to foreigners. The validity period of the issued TRC will never exceed the remaining validity period of the previously issued work permit, ensuring consistency between the right to reside and the right to work legally in Vietnam for foreigners.

Additional information for businesses.

To build the safest and most optimal legal roadmap for international personnel, businesses should refer to in-depth articles on what TRC temporary residence permits are in order to prepare for the transition to long-term residency as soon as work permits are obtained.

In addition, understanding the procedures for applying for DN1 and DN2 visas for business travelers also helps businesses be more proactive in the initial preparation phase.

For foreign academic documents, this article provides detailed instructions on the consular legalization procedure for foreign academic degrees and criminal records, outlining the steps to verify the validity of these documents according to Vietnamese law.

Frequently Asked Questions about Administrative Procedures

Conclude

Understanding the nature of a work permit, along with thorough preparation of the necessary conditions and documents, and adherence to the latest four-step process, is key to ensuring that businesses employing foreign workers operate legally and safely. In the context of increasingly stringent and constantly evolving legal regulations, the procedure demands meticulous attention to detail and absolute accuracy from both businesses and workers. Investing time and resources in obtaining a work permit is the foundation for businesses to protect their high-quality international workforce, thereby promoting sustainable and prosperous business development in the Vietnamese market, with the support of reputable consulting firms.

Contact information for MAN – Master Accountant Network

• Address: 19A, 43rd Street, Tan Thuan Ward, Ho Chi Minh City
• Mobile/Zalo: 0903 963 163 – 0903 428 622
• Email: man@man.net.vn

Content production is overseen by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant Network, CPA Vietnam auditors with over 30 years of experience in accounting, auditing, and financial consulting.