Differences Between Work Permit, Work Permit Exemption, and TRC in Vietnam

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Differences Between Work Permit, Work Permit Exemption, and TRC in Vietnam

Table of Contents

Introduction

If you are a foreigner planning to work or stay long-term in Vietnam, you must comply with the country’s immigration and labor regulations. Vietnam has three main types of documents that foreigners often need:

  1. Work Permit – this is a document that gives you legal permission to work in Vietnam.
  2. Work Permit Exemption Certificate – this allows certain foreigners to work in Vietnam without needing a work permit, but only if they meet specific conditions.
  3. Temporary Residence Card (TRC) – this is a residence permit that allows you to live in Vietnam for an extended period without needing to renew your visa frequently.

Each document serves a different purpose. Depending on your situation, you may need just one or a combination of them. Understanding the differences between these three is crucial to avoid legal violations, fines, or deportation.

1. What is a Work Permit in Vietnam?

1.1 Definition (Explained)

A Work Permit is a legal document issued by the Department of Labor and Internal Affairs (formerly DOLISA). This permit allows foreign nationals to legally work for a Vietnamese company or organization. Holding a valid Vietnam work permit is a mandatory requirement for foreign employees. Working in Vietnam without a work permit is considered a violation of labor laws and can result in significant penalties for both the foreign worker and the employer, including administrative fines and possible deportation.

1.2 Legal Basis

The requirements and rules about Work Permits are written in the following laws:

  • Labor Code No. 45/2019/QH14 – this is Vietnam’s main labor law.
  • Decree No. 152/2020/ND-CP, updated by Decree No. 70/2023/ND-CP – these government documents explain details like who needs a work permit and how to get one.

These documents are the official legal foundation for work permits in Vietnam.

1.3 Who Needs a Work Permit?

According to Vietnamese law, most foreigners working in Vietnam need a Work Permit. Below are common cases where a foreigner must apply:

  • Labor contract: If a foreigner signs an employment contract with a Vietnamese company, they must have a Work Permit.
  • Internal transfer: If your foreign company sends you to work in their Vietnam branch, you still need a permit.
  • Business and service activities: If you provide services, consultancy, education, etc., in Vietnam, the law requires you to have a permit.
  • Project work or bids: Foreigners coming to work under a bidding package or project in Vietnam also need a permit.
  • Volunteers or NGO workers: Some may still need to apply, depending on the case.
  • Foreigners managing a company or acting as technical experts are also subject to this requirement unless specifically exempted.

In summary, almost all foreign workers need a Work Permit unless they qualify for an exemption.

1.4 Conditions to Obtain a Work Permit

To get a Work Permit, the foreign worker must:

  1. Be 18 years or older: This ensures the worker is legally an adult.
  2. Be healthy enough for the job: A medical check-up is usually required to prove this.
  3. Have no criminal record: The applicant must not have been convicted of crimes in their home country or Vietnam.
  4. Have the right qualifications or work experience: This means having a degree, certificate, or relevant job experience that matches the job offered in Vietnam.
  5. Be hired by a legal employer in Vietnam: The company or organization must be operating legally in Vietnam and submit the application.

These conditions are in place to ensure that the foreigner is qualified and safe to work in Vietnam.

1.5 Duration

  • A Work Permit in Vietnam is valid for up to 2 years.
  • It can be renewed one time for up to another 2 years.
  • After that, a new application must be submitted.

2. What is a Work Permit Exemption?

2.1 Definition

A Work Permit Exemption Certificate allows certain foreign individuals to work in Vietnam legally without needing a full Work Permit. However, you must still apply for this certificate and get it approved by the government. This is not automatic – even if you are exempt from the permit itself, the law often requires you to submit paperwork to prove you are eligible.

2.2 Legal Basis

This type of certificate is regulated by:

  • Decree No. 152/2020/ND-CP, especially Article 7
  • Decree No. 70/2023/ND-CP, which updates some exemption conditions

These legal texts explain clearly who qualifies for exemption and what documents are needed.

2.3 Who Is Eligible for Work Permit Exemption? (Step-by-Step)

Some people can apply for an exemption if they are:

  1. Company owners or board members of a limited liability or joint stock company in Vietnam.
  2. Heads of NGOs or representative offices legally allowed to operate in Vietnam.
  3. Foreigners working in Vietnam for less than 30 days at a time and not more than 3 times a year.
  4. Teachers or academic experts invited to teach or research by educational institutions.
  5. Certified volunteers working in international cooperation programs.
  6. Foreigners working under international treaties, such as trade agreements (WTO, CPTPP, FTAs).
  7. Family members of diplomats who are allowed to work under treaty rules.

Important: Even if you fall under these categories, you usually need to get a confirmation from Department of Labor and Internal Affairs in the form of a certificate to prove your exemption status.

2.4 Duration

The certificate is typically valid for up to 2 years, just like a Work Permit.

3. What is a Temporary Residence Card (TRC)?

3.1 Definition

A Temporary Residence Card (TRC) is a document that allows a foreigner to live in Vietnam for a longer period without having to renew a visa repeatedly. It acts like a long-term visa and also functions as a personal identification document in Vietnam. This card is especially useful for foreigners who work, invest, or have family in Vietnam.

3.2 Legal Basis

The TRC is regulated under:

  • Law No. 47/2014/QH13 – the Law on Entry, Exit, Transit, and Residence
  • Law No. 51/2019/QH14 – which updates the previous law

These are Vietnam’s key immigration laws.

3.3 TRC Types and Eligibility

TRC Code Who Can Apply? Max Duration
LD1 Workers who are exempt from needing a work permit 2 years
LD2 Foreign workers with a valid work permit 2 years
DT1-DT4 Foreign investors, depending on capital amount From 1 to 10 years
TT Spouses and children of TRC or Vietnamese citizens 3 years
NG3 Diplomatic staff’s family members 3 years

In summary, your TRC type will depend on your work status, investment, or family connection.

3.4 Benefits of a TRC

  • You don’t need to apply for a visa each time you enter Vietnam.
  • You can open a bank account, sign a lease, register for a phone plan, and more.
  • It’s more convenient and cheaper than renewing a visa every few months.

4. Key Differences Between the Three Documents

Criteria Work Permit Work Permit Exemption TRC
Purpose Legal right to work Work without permit Legal right to stay
Issued by Department of Labor and Internal Affairs Department of Labor and Internal Affairs Immigration Department
Who needs it? Most foreign workers Specific exempt cases only Workers, investors, families
Employer required? Yes Usually yes Yes, unless family-based
Duration Up to 2 years Up to 2 years Up to 10 years
For entry/exit? No No Yes

5. FAQs

Q1. Can I work in Vietnam with just a TRC?
👉 No. A TRC allows you to stay, but to work legally, you still need a Work Permit or Exemption Certificate.

Q2. Can I apply for all documents while staying in Vietnam?
👉 Yes, most documents can be processed without leaving Vietnam if your papers are complete.

Q3. Do I need both a Work Permit and a TRC?
👉 Yes, if you plan to work and stay long-term. The Work Permit allows you to work; the TRC lets you live in Vietnam without renewing visas.

Q4. What happens if I work without a permit?
👉 You could face large fines, deportation, and your employer may also be penalized.

6. How Green NRJ Supports You

At Green NRJ, we specialize in helping foreigners and companies with all procedures related to:

  • Work Permits (application, renewal, and compliance)
  • Work Permit Exemption Certificates
  • Temporary Residence Cards (TRC)
  • Immigration and legal compliance
  • Bilingual document preparation (Vietnamese-English)

With our experience, you can avoid delays, penalties, or rejection, and ensure that all your legal paperwork is in place.

📞 Contact us now for a free consultation!

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