Insight Hub

By LevelAdvise Legal Team | Ho Chi Minh City

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Introduction

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Vietnam is quickly becoming a magnet for foreign professionals across a wide range of industries. While the energy is dynamic and the growth potential is undeniable, understanding how to work legally and securely in Vietnam is key to making your experience a success.

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At LevelAdvise, we’ve advised hundreds of expats and international companies. Based on real case experience, this guide breaks down the employment journey for foreign workers into three practical stages:

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1. Getting legally employed

2. Working with proper protections and compliance

3. Exiting your job the right way

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Our goal is to inform you clearly — so you can confidently move forward, backed by knowledge and awareness.​​

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1. Getting the Job: Legal Entry into the Vietnamese Workforce

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To legally work in Vietnam, foreign nationals must fulfill certain administrative and legal conditions. These are governed by the Labor Code 2019 and key implementing regulations such as Decree 152/2020/NĐ-CP, which specifically addresses the use of foreign labor in Vietnam.

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Work Permit (Giấy phép lao động)

Required for almost all foreign workers, unless you qualify under one of the exemptions (e.g. internal corporate transfers, teaching in short programs, heads of representative offices, or marriage to a Vietnamese citizen).

 

Key requirements:

• University degree (or higher) relevant to your job

• At least 3 years of experience in a specialized field

• Medical certificate issued within the last 12 months by an authorized hospital or clinic in Vietnam

• Police clearance from home country (and from Vietnam, if applicable)

• Legalized copies of degrees and experience certificates

 

Legal Basis: Articles 151–157, Labor Code 2019; Decree 152/2020/NĐ-CP

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Note: Some exemptions allow short-term work (under 30 days) without a permit under specific conditions (Decree 152/2020, Article 7). Always confirm with the local Department of Labor.

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The work permit is employer-specific and valid for up to 2 years. If you change employers, a new work permit is required.

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Holding More Than One Work Permit?

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Foreigners are allowed to hold more than 1 valid work permits at the same time, provided that:

• Each permit is tied to a different employer

• The nature of work and job title are clearly defined in each contract

• All applications are submitted separately and approved by the Department of Home Affairs

 

However, each new work permit must go through the full application process, and the employer must justify the need to hire a foreign national for that specific role.

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Legal Basis: Labor Code 2019, Decree 152/2020/NĐ-CP (on foreign workers in Vietnam)

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Labor Contract (Hợp đồng lao động)

Your labor contract must comply with Vietnamese law and should be signed after the work permit is issued.

 

Key contents under Article 21 of the Labor Code:

• Job description

• Working location

• Duration of contract

• Salary and payment method

• Social insurance contributions

• Working hours, rest periods

• Dispute resolution clauses

 

Probation is also regulated:

• 30 days max for jobs requiring college degrees

• Can be waived by mutual agreement

 

Note: It is illegal to work on a tourist visa, or to begin working before obtaining both a valid work permit and signed labor contract. Entry on a business or e-visa does not in itself grant the right to work.

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Did you know?
Once you have a valid work permit and labor contract, you become eligible for a Temporary Residence Card (TRC). This allows you to stay long-term in Vietnam without visa renewals and also enables:

• Driver’s license conversion

• Local banking

• Lease agreements

• Sponsoring dependents

 

2. While on the Job: Legal Protections & Responsibilities

 

​Vietnam’s labor protections for foreign workers are largely the same as for Vietnamese workers. Here are the most important elements of compliance and entitlements:

 

Social Insurance (Bảo hiểm xã hội bắt buộc)

As of January 1, 2022, foreign employees who:

• Have a valid work permit or practice certificate, and

• Are employed under an indefinite or at least 12-month contract,
  must participate in Vietnam’s compulsory social insurance system.

 

Contributions (as of 2024):

• Employee: 9.5%

• Employer: 20.5%

 

Legal Basis: Decree 143/2018/NĐ-CP; Law on Social Insurance No. 58/2014/QH13

 

Exemptions:

• Intra-company transferees in a managerial position

• Workers from countries with bilateral social insurance agreements with Vietnam

 

Health Insurance (Bảo hiểm y tế bắt buộc)

Foreign employees with contracts of at least 3 months are required to join the compulsory health insurance system, alongside their employers.

 

Contribution Rates:

• Employer: 3%

• Employee: 1.5%
  → Total: 4.5%

 

Legal Basis: Law on Health Insurance No. 25/2008/QH12 (amended 2014); Circular 30/2020/TT-BYT

 

Coverage Includes:

• Outpatient and inpatient care

• Emergency services

• Chronic disease treatment

• Maternity care (in public hospitals)

• Partial reimbursement for prescriptions and tests

 

How to Use It:

• You’ll receive a Health Insurance Card linked to a clinic or hospital

• Bring it to appointments at public facilities

• For emergencies, treatment at any hospital is allowed, with later reimbursement

 

Pro Tip: Many foreign-invested companies also provide private health insurance, especially for managerial staff, as a supplement to the public scheme.

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Labor Conditions:

Under Labor Code 2019, foreign workers are entitled to:

• Maximum: 8 hours/day or 48 hours/week

• Overtime: Up to 40 hours/month, with premium pay (150–300%)

• 13 days of paid public holidays, plus:

  • 12 days of annual leave (minimum)

  • Extra leave for seniority

• Sick leave, maternity leave, and work injury insurance (via social insurance)

 

Your employer must:

• Register your labor contract with authorities

• Report foreign labor usage every 6 months

 

Not-so-obvious Insight: Social insurance contributions may entitle you to pension benefits in the future — unless you request a one-time refund upon exit (see below). Some state hospitals in major cities now offer English-speaking doctors and expat service desks.

 

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3. Leaving the Job: Compliance at Exit

 

Leaving a job in Vietnam isn’t just a matter of quitting — there are legal obligations for both employee and employer.

 

Notice Periods:

Per Article 35 of the Labor Code:

• 45 days: Indefinite-term contracts

• 30 days: Fixed-term contracts

• 3 working days: During probation

 

Early termination without proper cause may lead to loss of benefits or legal disputes.

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Final Settlement 

Upon termination, you are entitled to:

• Full salary and unused leave

• Your social insurance book (Sổ BHXH)

• Severance pay (if applicable)

 

Employers must settle all obligations within 14 working days after contract termination. Failure to do so may result in fines (per Article 48, Labor Code 2019).

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Social Insurance Refund for Expats

Foreign employees who terminate their labor contract and no longer participate in Vietnam’s compulsory social insurance system are eligible to request a one-time lump-sum payout of the retirement and survivorship insurance fund contributions.

 

Legal Basis: Article 9, Decree 143/2018/NĐ-CP (Guiding the Social Insurance Law for foreign workers in Vietnam)

 

To apply:

• Obtain confirmation from the Vietnam Social Security (VSS)

• Provide proof of immigration status change or departure

 

Work Permit & Visa/Residence Card Termination 

Your employer is responsible for:

• Notifying the Department of Home Affairs

• Canceling your work permit

• Coordinating with Immigration to cancel your visa or TRC

 

Note: If you plan to stay in Vietnam after resigning, you must switch to a different visa status before your current TRC or visa expires.

 

Insight: In some provinces, TRC cancellation must be reported within 15 days of termination (per Circular 31/2015/TT-BCA). Also, request your termination decision and tax clearance, especially if you plan to re-enter Vietnam or apply for visas elsewhere.

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Final Thoughts

 

Navigating employment in Vietnam as a foreigner requires patience, paperwork — and above all, awareness. The system is becoming more professional, but misunderstandings still happen, especially without proper legal support.

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Our role at LevelAdvise is to help you cut through the complexity. We don’t just process documents — we advise, interpret regulations, and advocate for foreign professionals who want to build their careers here legally and confidently.

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📩 Need help with your work permit, contract review, or labor dispute?
Let our legal advisors walk you through your situation with clarity and care.

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📍 Office: 32 Pham Ngoc Thach, Vo Thi Sau Ward, District 3, HCMC
📧 Email: info@leveladvise.com
🌐 Web: www.leveladvise.com

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