Table of Contents

1. Introduction
2. What is a Work Permit in Vietnam?
3. What is an Investor Visa in Vietnam?
4. Key Differences Between a Work Permit and an Investor Visa
5. How to Know Which One You Need
6. Step-by-Step Application Process for Each Option
7. Validity Periods and Extension Conditions
8. Legal Question: Can Investors Work Without a Work Permit?
9. Practical Examples and Realistic Scenarios
10. How Green NRJ Supports Foreigners in Vietnam
11. Frequently Asked Questions (FAQs)

1. Introduction

When a foreigner wants to either work or invest in Vietnam, choosing the correct type of legal status is crucial. This decision impacts how long you can stay in the country, what activities you are allowed to perform, and which obligations you must comply with. The two most commonly used legal pathways are the Work Permit and the Investor Visa.

Although both documents allow foreign nationals to live and work in Vietnam, each serves a different legal purpose and applies to different situations. This article will guide you step-by-step in understanding the differences and help you decide which option is best for your specific goals in Vietnam.

2. What is a Work Permit in Vietnam?

A Work Permit is a legal document issued by the Department of Labor, Invalids and Social Affairs (DOLISA) — now referred to as the Department of Labor and Internal Affairs following the administrative restructuring in 2025. It allows a foreign national to be legally employed by a registered Vietnamese company or organization.

If you are a foreigner who wants to work in Vietnam for more than 30 consecutive days or for more than 90 days in total within one year, you are required by law to obtain a Work Permit, unless you qualify for an exemption.

To apply for a Work Permit, you must be sponsored by a Vietnamese employer, and you must meet certain conditions regarding your qualifications, work experience, and health status. The employer is responsible for initiating the application and managing the procedure with the authorities.

3. What is an Investor Visa in Vietnam?

An Investor Visa, often referred to as a DT Visa, is granted to foreign individuals who invest capital into a company or establish their own business in Vietnam.

This type of visa allows investors to reside in Vietnam and legally participate in managing their business operations. Unlike the Work Permit, the Investor Visa is based on the amount of capital you contribute and your role as a company owner or shareholder.

There are four main categories of Investor Visas, which are defined according to the capital amount you invest:

• DT1 Visa: For investments of VND 100 billion or more, or for projects of national importance.
  
• DT2 Visa: For investments ranging from VND 50 billion to under VND 100 billion.
  
• DT3 Visa: For investments from VND 3 billion to under VND 50 billion.
  
• DT4 Visa: For investments under VND 3 billion.
  

Each type of visa has a different maximum validity period, with DT1, DT2 lasting up to 5 years, while DT4 is valid for only 1 year.

4. Key Differences Between a Work Permit and an Investor Visa

Understanding the differences between these two legal statuses is essential for compliance and business success. Below is a clear comparison:

In summary, the Work Permit is ideal for foreign employees, while the Investor Visa is designed for entrepreneurs, shareholders, or company founders.

5. How to Know Which One You Need

You should apply for a Work Permit if:

• You have been offered a job by a Vietnamese company.
  
• You are not a shareholder or owner of the company you work for.
  
• You are being sent to Vietnam by your overseas employer to work temporarily for a local entity.
  
• You will be working under a fixed contract with a Vietnamese business or organization.
  

You should apply for an Investor Visa if:

• You are contributing capital to start a business in Vietnam.
  
• You are listed as a legal representative or director of a company.
  
• You want to manage your own enterprise and stay in Vietnam long-term.
  

You wish to obtain a Temporary Residence Card (TRC) for 1 to 5 years without needing a Work Permit.

6. Step-by-Step Application Process for Each Option

Work Permit Application Process

1. Obtain Approval for Using Foreign Labor
   Your employer must submit a request to the provincial labor department explaining the need to hire a foreign worker.
   
2. Collect Required Documents
   These include your passport, health check, criminal record, university degree, work experience confirmation, and legalized documents.
   
3. Submit Application to Department of Labor and Internal Affairs
   The employer submits the complete application package to the Department of Labor and Internal Affairs
   
4. Receive Work Permit
   If all documents are valid, the permit is issued within 10–15 working days.

Investor Visa Application Process

1. Register Your Business
   You must either set up a new company in Vietnam or invest in an existing one by contributing capital and becoming a shareholder.
   
2. Receive Enterprise Registration Certificate (ERC)
   This document proves your company is legally registered.
   
3. Contribute Capital
   You must transfer the full amount of registered capital into the company’s account.
   
4. Apply for the Investor Visa (DT1–DT4)
   Submit your passport, ERC, proof of capital contribution, and other required documents to the Immigration Department.
   
5. Receive Visa or TRC
   You will be granted a visa or a Temporary Residence Card, valid according to your investment tier.
   

7. Validity Periods and Extension Conditions

The extension of both Work Permits and Investor Visas depends on compliance with the law and the continued existence of the employment contract or investment project.

8. Legal Question: Can Investors Work Without a Work Permit?

Yes — under Article 7 of Decree 152/2020/NĐ-CP, amended by Decree 70/2023/NĐ-CP, investors do not need a Work Permit if they meet ALL of the following:

• Are listed as legal representatives or capital contributors
• Have capital contribution of at least VND 3 billion
• Are actively managing the company

Important: If you are not a managing investor (e.g. silent investor or minor shareholder), or if you work in another company, you still need a valid Work Permit.

9. Practical Examples and Realistic Scenarios

• Scenario 1: John is hired as a Chief Engineer at a construction company in Ho Chi Minh City. He has no ownership in the company. → John needs a Work Permit.
  
• Scenario 2: Lisa decides to open a vegetarian café in Hanoi with an investment of VND 3.5 billion. She is the sole owner. → Lisa qualifies for a DT3 Visa and does not need a Work Permit.
  
• Scenario 3: Ahmed invests VND 100 million in a friend’s company but does not participate in operations. → He may get a DT4 Visa, but cannot work for the company unless he also obtains a Work Permit.

10. How Green NRJ Supports Foreigners in Vietnam

At Green NRJ, we specialize in helping foreign investors, professionals, and entrepreneurs comply with Vietnam’s legal framework. Our team offers:

• End-to-end support for Work Permit applications
  
• Consulting and document preparation for Investor Visa processing
  
• Assistance in company registration and capital contribution in Vietnam
  
• Legal advisory services to ensure full compliance with immigration and labor regulations
  

We take care of the bureaucracy so you can focus on achieving your goals in Vietnam. 📞 Contact us now for a free consultation!

11. Frequently Asked Questions (FAQs)

Q1: Can I convert my Work Permit into an Investor Visa?
A: Yes. If you decide to invest and establish a business, you can switch your legal status from employee to investor.

Q2: Can I hold both a Work Permit and an Investor Visa at the same time?
A: In some cases, it is legally possible, but each status comes with different rights and obligations. You should not use one status to perform activities covered by another.

Q3: Is there a minimum capital requirement for setting up a company?
A: While Vietnam does not have a general minimum capital requirement, immigration authorities expect a reasonable amount for your business sector. For DT3 eligibility, your capital must be at least VND 3 billion.

Q4: How long does it take to obtain a Work Permit or Investor Visa?
A: Typically, a Work Permit takes around 15 working days, while an Investor Visa can be obtained within 5–7 working days after company registration.

Related Articles

• Comprehensive Guide to Work Permits in Vietnam for Foreign Workers (Updated 2025)
• Differences Between Work Permit, Work Permit Exemption, and TRC in Vietnam