WORK PERMITS – NEW POLICIES AND THEIR IMPACTS ON THE INVESTMENT ENVIRONMENT

In the context of Vietnam’s deep integration into the global economy, the foreign workforce plays a vital role in transferring knowledge, skills, and technology. However, along with the rapid development of the international labor market, the management of foreign employees must also be adjusted to reflect current realities. The Government of Vietnam has promulgated Decree No. 219/2025/ND-CP, replacing and updating previous regulations, with the aim of facilitating business operations while ensuring quality control over foreign human resources in Vietnam.

Key Updates in Regulations on Work Permit Issuance

Under Decree No. 219/2025/ND-CP, the processing time for work permit applications for foreign employees has been significantly shortened, thereby helping enterprises reduce recruitment pressure and administrative delays. However, together with this flexibility, the Decree imposes stricter requirements on the proof of professional qualifications, technical skills, and practical experience of foreign workers.

Specifically, documents evidencing work experience must be consularly legalized, officially translated, notarized, and consistent with the intended job position in Vietnam. In addition, employers must provide a clear explanation of the reasons for employing foreign workers instead of local employees (as prescribed in Form No. 03 attached to the Decree), in accordance with the spirit of the 2019 Labour Code—foreign experts may only be hired when no qualified Vietnamese workers are available for the position.

WORK PERMITS – NEW POLICIES AND THEIR IMPACTS ON THE INVESTMENT ENVIRONMENT
WORK PERMITS – NEW POLICIES AND THEIR IMPACTS ON THE INVESTMENT ENVIRONMENT

Impacts of the New Policy on Enterprises and Investors

The new policy serves both as an incentive and a regulatory instrument influencing the investment environment.

On the positive side, the faster licensing procedure helps enterprises save time and administrative costs, thereby facilitating timely implementation of projects with foreign elements. This is particularly beneficial in high-technology, finance, and renewable energy sectors, where the demand for international expertise remains high.

However, the stricter requirements concerning qualifications and experience create difficulties for many enterprises in completing dossiers, especially small businesses or newly established projects. Many foreign investors are therefore compelled to adjust their human resource strategies—focusing on training and technology transfer to Vietnamese employees—in order to comply with the new regulations.

Accordingly, Decree No. 219/2025/ND-CP is not merely an administrative management instrument but also a driving force for domestic human resource development and an enhancer of the quality of foreign-invested projects in Vietnam.

The Linkage Between Decree No. 219/2025/ND-CP and Related Legal Instruments

Decree No. 219/2025/ND-CP was promulgated based on, and in conformity with, the 2019 Labour Code and the 2020 Investment Law.

Article 151 of the 2019 Labour Code clearly defines the conditions under which foreign employees may work in Vietnam, forming the legal foundation for identifying groups of foreign workers permitted to work in the country (managers, executive directors, experts, and technical workers). Meanwhile, the 2020 Investment Law affirms the rights and obligations of foreign investors, including their responsibility to comply with labor regulations and employ personnel lawfully.

This consistency has rendered the legal system governing foreign labor management more transparent and practicable, enabling enterprises to better understand their legal obligations and minimize risks in project implementation.

Conclusion: Balancing Control and Investment Attraction

The policy on work permit issuance under Decree No. 219/2025/ND-CP demonstrates the State’s effort to strike a balance between controlling the quality of foreign labor and promoting international investment.

Although the licensing process has become more stringent, this rigor serves as a foundation for enhancing Vietnam’s image as a transparent, professional, and sustainable investment environment.

In the near future, the effective implementation of this policy will require close coordination among enterprises, competent authorities, and investors to ensure that Vietnam remains an attractive destination for high-quality human resources and large-scale foreign direct investment (FDI) projects.

Siglaw’s Support Services for Work Permit Applications

Siglaw Firm provides comprehensive legal services concerning work permits for foreign employees, including:

  • Consulting on conditions, dossiers, and procedures for issuance, renewal, and reissuance of work permits;
  • Legalization, translation, and preparation of dossiers in full compliance with Decree No. 219/2025/ND-CP;
  • Representing enterprises in working with competent authorities to expedite processing time and ensure legal compliance.

With extensive practical experience in the fields of labor and foreign investment, Siglaw is committed to delivering prompt, accurate, and cost-effective solutions for enterprises and investors.

Dung Le (Elena)

Attorney-at-Law

Founding Partner

Lawyer Le Dung has more than 14 years of experience providing legal advice to investors from more than 10 countries such as the US, Singapore, Canada, Denmark, Japan, Korea, China…

Warning:
Siglaw impersonation
Contact