Hiring Foreign Workers in Vietnam: A Successful Guide to Laws and Procedures (2026)

Vietnam continues to be one of the most attractive investment destinations in Asia, thanks to its increasingly improved business environment, competitive costs, and abundant labor force. Along with the rise of foreign investment projects, the demand for hiring foreign experts, managers, and technical workers has also become more common across various sectors such as manufacturing, information technology, education, logistics, construction, and professional services.

However, hiring foreign workers in Vietnam is not simply a matter of signing an employment contract with suitable candidates. Enterprises must comply simultaneously with regulations on labor, immigration, taxation, and social insurance. In many cases, employing foreign workers without completing the required procedures may result in administrative penalties, affecting both the company’s operations and the legal residence status of the employee.

This article provides an overview of the current regulations related to hiring foreign workers in Vietnam, from conditions for using foreign labor, procedures for obtaining approval of labor demand, work permits, visas, and temporary residence cards, to tax and social insurance obligations that enterprises need to be aware of.

Legal Basis Governing the Use of Foreign Workers in Vietnam

The use of foreign workers in Vietnam is currently governed mainly by the 2019 Labor Code, Decree 219/2025/ND-CP on foreign employees working in Vietnam, the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, and relevant guiding documents.

The general principle of Vietnamese law is to prioritize the use of Vietnamese labor. Therefore, enterprises are only allowed to hire foreign workers for positions that local labor cannot meet in terms of professional qualifications, experience, or specialized skills.

Recruitment must follow the prescribed procedures and must be approved by competent authorities in cases required by law. One of the most important requirements is that enterprises must clearly define the job position, title, and reasons for using foreign workers. This information serves as the basis for carrying out the procedure for explaining the demand for foreign labor before proceeding with further steps.

Cases Where Enterprises Are Allowed to Hire Foreign Workers

Vietnamese law allows enterprises to hire foreign workers in various positions depending on actual business needs. The most common categories include managers, executive directors, experts, and technical workers. These are also the groups that frequently undergo procedures for obtaining work permits in Vietnam.

Proper classification is very important because the documentation required for each category is different. In many cases, enterprises may misclassify job titles or eligibility conditions, leading to requests for additional documents or longer processing times.

Procedure for Hiring Foreign Workers in Vietnam

Although the recruitment process may vary depending on job positions and working forms, the above steps are the basic procedures that most enterprises must follow before foreign employees officially start working in Vietnam.

In practice, the most important step is usually determining whether the foreign worker is subject to a work permit requirement, as well as assessing whether they meet conditions regarding experience, qualifications, and legal documents under current regulations. This is also the stage where the most issues arise if enterprises are not well-prepared from the beginning.

Due to differences in conditions applied to each group such as experts, managers, executive directors, or technical workers, enterprises should carefully evaluate each individual case before proceeding with the procedure.

After completing labor-related procedures, foreign workers typically continue with residence procedures to legally live and work in Vietnam for a longer period. Depending on each case, enterprises may consider applying for a work visa or temporary residence card to facilitate employment, travel, and long-term stay in Vietnam.

Visa and Temporary Residence Cards for Foreign Workers

After completing labor-related procedures, foreign workers may be granted appropriate visas or temporary residence cards depending on their legal status in Vietnam. Common types include:

In practice, most foreign workers who work stably in Vietnam prefer temporary residence cards instead of short-term visas. This helps reduce the need for frequent renewal procedures and provides more convenience for living, working, and traveling in and out of Vietnam. In addition to employees, investors, representative office heads, or foreigners working for foreign organizations in Vietnam may also be considered for other types of visas or residence cards depending on their legal status and purpose of stay.

Common Mistakes When Hiring Foreign Workers

Although regulations on foreign labor in Vietnam have been in place for many years, many enterprises still misunderstand or lack full awareness of relevant legal requirements. These mistakes may result in rejected applications, longer processing times, or risks during labor inspections.

Having a business visa means being allowed to work

This is one of the most common misconceptions among newly established enterprises or first-time investors in Vietnam. A visa only allows foreigners to enter and stay in Vietnam for a certain period. However, the legal right to work depends on whether the individual has a work permit or qualifies for work permit exemption under regulations. In other words, holding a visa does not automatically mean the foreigner is allowed to work in Vietnam.

Being a shareholder or capital contributor means no work permit is required

Many foreign investors believe that simply holding shares or capital contribution allows them to directly manage and work in the company without additional procedures. In reality, this depends on capital ratio, job position, and specific legal conditions. Not all shareholders or capital contributors are exempt from work permits. Therefore, enterprises should carefully assess each case before making recruitment or appointment decisions.

Short-term work does not require procedures

Some enterprises believe that if a foreigner only works in Vietnam for a few weeks or months, labor procedures are not required. In fact, duration is only one of many factors considered. Whether a work permit is required depends on the purpose of work, job position, and applicable legal basis in each case.

A work permit can be applied for after the employee has already started working

Another common mistake is allowing foreign workers to start working before completing the work permit application. Vietnamese law requires foreign workers to fully meet legal conditions before officially starting work. Allowing employees to work without proper documentation may result in penalties for both the enterprise and the employee.

Tax, Insurance, and Compliance Obligations of Enterprises

Hiring foreign workers is not limited to work permits and residency procedures. Once employees start working, enterprises must also fulfill various obligations related to labor, tax, and social insurance.

Personal income tax

Foreign workers in Vietnam may be subject to personal income tax depending on their tax residency status and income sources. In many cases, incorrectly determining tax residency or misapplying double taxation agreements may lead to tax arrears and penalties. Therefore, enterprises should review salary structures, allowances, and employee residence duration from the beginning to establish an appropriate tax declaration plan.

Social insurance

Under current regulations, certain foreign workers in Vietnam are subject to compulsory social insurance. Depending on the type of labor contract, residency status, and other conditions, enterprises may be required to contribute social insurance for foreign employees similarly to Vietnamese employees in certain regimes. Proper assessment of insurance obligations from the outset helps avoid future retroactive payments.

Labor contracts and personnel records

Enterprises employing foreign workers must still comply with general provisions of the Labor Code regarding employment contracts, working hours, rest time, annual leave, occupational safety, and other benefits. In addition, enterprises must maintain full labor records, work permits, employment contracts, and related documents for inspection or audit purposes when required.

Conclusion

Hiring foreign workers in Vietnam is not only about finding suitable candidates but also requires enterprises to fully comply with regulations on labor, immigration, taxation, and social insurance.

From explaining the need for foreign labor, applying for work permits or exemptions, to visa and temporary residence procedures and post-employment compliance obligations, each stage has specific legal requirements that enterprises must pay attention to. Proper preparation from the beginning not only shortens processing time but also minimizes risks during business operations.

If your company is planning to hire foreign experts, managers, or technical workers in Vietnam, Green NRJ can support the entire process from legal assessment, document preparation, work permit application, visa and temporary residence card processing, to payroll and related labor compliance services.