Hiring Staff, Work Permits and Visas in Vietnam: FAQs
Employment in Vietnam is governed by Labour Code No. 45/2019/QH14, with labour policy now under the Ministry of Home Affairs and work permits issued by provincial People's Committees. These answers cover the questions employers ask most, for Vietnamese and foreign staff.
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Do foreign staff need work permits in Vietnam?
Yes, unless an exemption applies. Decree No. 219/2025/ND-CP, in force since 7 August 2025, replaced Decree No. 152/2020/ND-CP and gave the provincial People's Committee power to issue work permits, usually through the provincial Department of Home Affairs, which took over labour functions from the former DOLISA. A permit lasts up to two years and can be extended once. Exemptions include owners or members of a limited liability company, and board members of a joint stock company, who contributed at least VND 3 billion, heads of representative offices, managers and experts working under 90 days a year, spouses of Vietnamese citizens and specialists in priority fields such as finance, science, technology and digital transformation.
How does the work permit process work, and must I try to hire locally first?
Yes, in a light-touch way. Decree No. 219/2025/ND-CP abolished the separate advance approval of the demand for foreign workers and folded that explanation into a single work permit application. Before applying, the employer must advertise the position to Vietnamese candidates for at least five days, then file the dossier 10 to 60 days before the start date; the authority decides within 10 working days of a complete dossier. Expect to provide a health certificate, a recent criminal record check (which can be requested online alongside the permit), evidence of qualifications and experience, and the employment contract or assignment letter. Managers, executives, experts and technical workers must each meet defined qualification and experience criteria.
What visas and residence cards are available to investors and foreign staff?
Investor visas are graded by capital contributed: DT1 for VND 100 billion or more (or projects in priority sectors or areas), DT2 for VND 50 billion to under 100 billion, DT3 for VND 3 billion to under 50 billion, and DT4 below VND 3 billion. DT1, DT2 and DT3 holders can obtain temporary residence cards of up to 10, 5 and 3 years respectively; DT4 holders cannot. Employees usually hold an LD visa and a residence card of up to two years, matching their work permit or exemption. An e-visa of up to 90 days, single or multiple entry, is available to all nationalities. Law No. 118/2025/QH15 added a UD1 visa for high-calibre specialists from 1 July 2026.
What must an employment contract in Vietnam contain?
Under Labour Code No. 45/2019/QH14, a contract is either indefinite-term or definite-term of up to 36 months, and any agreement for paid work under an employer's management is treated as an employment contract whatever it is called. Contracts should be in writing and record the parties, job and workplace, term, salary and payment method, allowances, raises, working hours and rest, protective equipment, social and health insurance, and training. Two consecutive definite-term contracts are normally the limit before the relationship becomes indefinite, but a foreign employee's contract term cannot exceed the work permit. Probation depends on the role, up to 180 days for enterprise managers, and probation pay must be at least 85% of the agreed salary.
What working hours, leave and public holidays apply?
Normal hours are capped at 8 a day and 48 a week. Overtime is limited to 40 hours a month and 200 hours a year, or 300 in listed sectors, paid at least 150% on normal days, 200% on weekly rest days and 300% on public holidays. Annual paid leave starts at 12 working days, plus one day per five years of service. The Labour Code gives 11 public holiday days, and a National Assembly resolution effective 1 July 2026 adds Vietnam Culture Day on 24 November as a paid day off; foreign employees also get their own national day and traditional New Year. Maternity leave is six months, and seven for a second child from 1 July 2026.
What social, health and unemployment insurance must I pay?
For Vietnamese employees the employer pays 17.5% of insured salary for social insurance (including 0.5% for occupational accidents and diseases), 3% for health insurance and 1% for unemployment insurance, and the employee pays 8%, 1.5% and 1%, totals of 21.5% and 10.5%. Under Social Insurance Law No. 41/2024/QH15, in force since 1 July 2025, foreign employees with contracts of 12 months or more must also join, save for intra-company transferees, those at retirement age and treaty cases. They pay the same social and health insurance but no unemployment insurance, which under Employment Law No. 74/2025/QH15 covers Vietnamese workers. Contributions are capped at 20 times the reference salary.
Vietnam sets four regional minimum wages. Under Decree No. 293/2025/ND-CP, from 1 January 2026 the monthly minimums are VND 5,310,000 in Region I, VND 4,730,000 in Region II, VND 4,140,000 in Region III and VND 3,700,000 in Region IV, with hourly minimums of VND 25,500, 22,700, 20,000 and 17,800. The applicable region depends on where the employer operates, listed by commune-level unit following the 2025 administrative mergers. The minimum applies to employees under employment contracts and is a floor for pay for normal working hours. The Ministry of Home Affairs has proposed an average 7.8% rise from 1 January 2027, still awaiting a Government decree in late September 2026.
How can I terminate an employee, and what severance is due?
An employer may terminate unilaterally only on grounds listed in Labour Code No. 45/2019/QH14, such as repeated failure to perform work, prolonged illness or force majeure, giving 45 days' notice for indefinite contracts, 30 days for contracts of 12 to 36 months and 3 working days for shorter ones. Redundancies for restructuring or economic reasons require a labour usage plan, consultation with employee representatives and advance notice to the provincial authority, and dismissal for misconduct follows a strict disciplinary procedure. Severance is half a month's salary per year of service, and a job-loss allowance for redundancy is one month per year, at least two months. Unlawful termination requires reinstatement, back pay and at least two months' salary.
Do consultants and contractors create tax or permanent-establishment risk?
They can. Under Labour Code No. 45/2019/QH14, an agreement for paid work under an employer's management is an employment contract whatever it is called, so misclassified contractors create social insurance, tax and labour exposure. A foreign company supplying services in Vietnam is generally subject to foreign contractor tax, usually withheld by the Vietnamese customer and now governed by Decree No. 320/2025/ND-CP and Circular No. 20/2026/TT-BTC under Corporate Income Tax Law No. 67/2025/QH15. Staff working in Vietnam for extended periods, or agents who habitually conclude contracts, can also create a permanent establishment taxable on its profits, subject to any double tax treaty. Individuals still need a work permit or exemption.
Do I have to deal with trade unions or pay a union fee?
Employees may join or form a grassroots trade union affiliated to the Vietnam General Confederation of Labour, and under Law No. 50/2024/QH15 on Trade Unions, in force since 1 July 2025, foreign employees with contracts of 12 months or more may also join. Whether or not a union exists, every enterprise must pay a trade union fee of 2% of the salary fund used for compulsory social insurance. Decree No. 105/2026/ND-CP, in force since 16 May 2026, sets monthly payment and allows temporary suspension or a reduction of up to 20% for businesses in difficulty, with exemption only on dissolution or bankruptcy. Union members pay their own dues, and the union represents employees in dialogue and collective bargaining.
Ask the Be Vietnam Wise advisor. It checks official Vietnamese sources and points you to the governing law, or read how to find and check a Vietnamese lawyer.
This page gives legal and tax information, not legal advice. Rates, thresholds and procedures change; the answers are re-checked against official sources every month, but you should confirm anything important with the relevant authority or a licensed Vietnamese lawyer before you act.