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Vietnam: Understanding Vietnam’s Draft Decree for foreign employees and its key changes

In our Spotlight on APAC series, we round up the latest developments across the region. In this post, we focus on recent proposal submitted by Ministry of Home Affairs, Vietnam, on replacing the Decree 152/2020 (amended by Decree 70/2023) where projected changes touch on work permit (WP) and its exemption procedures. The key changes include:

  • Realignment of licensing authority for WP and WP exemptions
  • Exemptions for short-term foreign employees
  • Exemptions for individuals with specialised job skills and contribution to economy
  • Changes in the procedure of extension and re-issuance of WP exemption certificates
  • Streamlining of WP and WP exemption applications
  • Updated requirement for Health Certificate

Realignment of licensing authority: Ministry of Home Affairs

The Ministry of Home Affairs of Vietnam (MHA), recently restructured after the merger with the Ministry of Labor, Invalids and Social Affairs, will be the primary authority responsible for issuing, extending and revoking of WP and WP exemption applications. Employers established by central authorities, such as the Government, ministries, ministerial-level agencies, and other government bodies, may choose to apply either through the MHA or via their respective provincial People’s Committees (PCs).

For employers established by provincial PCs, their subordinate specialised agencies, or all-level PCs, or employers established by central authorities but operating within a provincial or municipal jurisdiction, applications may be submitted to their respective provincial PCs.

Short-Term Work Exemptions for PMETs

Another proposed change concerns foreign employees under the Professionals, Managers, Executives, and Technicians (PMET) category. These individuals may be exempted from obtaining a WP if their total working time in Vietnam is under 30 days, regardless of the number of entries. Currently, the exemption only applies if they work less than 30 days and do not enter the country more than three times in a calendar year.

New exemptions for specialised roles

The Draft Decree also proposes a new exemption category for foreign employees working in the fields of Science, Technology, Innovation, National Digital Transformation, and other priority sectors, as means to attract more skilled professionals to come into the country and work.

Changes to WP Exemption Certificate Extensions and Reissuance

Additional changes are proposed for WP Exemption Certificates. Firstly, extension requests will be allowed only once, with a maximum validity of two years. Submission for extension must be done within a window of 45 days from the current certificate’s expiry. As for re-issuance requests due to loss, damage or changes in personal particulars such as name, passport or employer details, a new certificate will be granted for the remaining term of the original certificate. The documentation requirements for reissuance will also be less stringent than those for a new application.

Streamlined WP and WP Exemption Processes

Simplifications are also expected for WP applications, including the removal of the requirement to obtain prior approval for foreign labour demand. WP exemptions will be applicable in cases involving government-issued work assignments, international agreements/treaties, or where there is proof of professional expertise and at least one year of continuous employment with the sending entity. Health certificate requirements have also been updated, now requiring confirmation that the foreign employee is free from any communicable disease.

Updated Health Certificate Requirements

The draft decree has yet to be implemented and is still in the works, however, employers and foreign employees are encouraged to monitor its development.

For more information or assistance on the above or on other global immigration matters, please do not hesitate to contact Rachel.Ang@magrath.sg or hazimah@magrath.sg.

 

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