Do individual foreign investors need to apply for a work permit?

Many foreign investors come to Vietnam to live and work. Depending on the amount of investment and specific circumstances, each type of investor will have different requirements regarding the work permit application process. In this article, let's explore with HTC Vietnam Law Firm when foreign investors need to apply for a work permit.

I. Legal Basis

- Labor Code 2019;

- Decree 152/2020/ND-CP regulates foreign workers working in Vietnam and the recruitment and management of Vietnamese workers working for foreign organizations and individuals in Vietnam;

- Decree 70/2023/ND-CP amends and supplements a number of articles of Decree 152/2020/ND-CP dated December 30, 2020.

II. Content of the consultation

1. What is a work permit?

Currently, there is no legal document defining what a Work Permit is , but it can be understood as a document allowing foreigners to work legally in Vietnam, issued by the Employment Department under the Ministry of Labor, Invalids and Social Affairs or the Department of Labor, Invalids and Social Affairs. The Work Permit clearly states the worker's information, including full name, passport number, date of birth, nationality; the name and address of the employing organization, and the job title.

2. Do foreign investors who are individuals need to apply for a work permit?

Foreign investors who are individuals wishing to work in Vietnam must meet the conditions stipulated in Clause 1, Article 151 of the 2019 Labor Code:

- Must be 18 years of age or older and have full legal capacity;

- Possess professional qualifications, technical skills, expertise, and work experience; have sufficient health as prescribed by the Minister of Health;

- Not a person currently serving a sentence, or whose criminal record has not yet been expunged, or who is currently being prosecuted under foreign law or Vietnamese law;

- Possess a work permit issued by a competent state agency of Vietnam, except in cases stipulated in Article 154 of this Code.

Accordingly, foreign workers in Vietnam must have a work permit issued by a competent state agency, except in cases where exemption applies. Therefore, if a foreign investor is an individual wishing to work in Vietnam, they also need a work permit, unless they fall under the cases exempted from work permit requirements as stipulated in Article 154 of the 2019 Labor Code.

Foreign workers working in Vietnam who are not required to obtain a work permit:

(1) Being the owner or capital contributor of a limited liability company with capital contribution value as prescribed by the Government.

(2) Being the Chairman of the Board of Directors or a member of the Board of Directors of a joint-stock company with capital contribution value as prescribed by the Government.

(3) Being the Head of the representative office, project or being primarily responsible for the operation of an international organization or foreign non-governmental organization in Vietnam.

(4) Enter Vietnam for a period of less than 03 months to offer services.

(5) Entering Vietnam for a period of less than 03 months to handle complex technical and technological incidents and situations that arise and affect or risk affecting production and business, which cannot be handled by Vietnamese experts and foreign experts currently in Vietnam.

(6) Being a foreign lawyer who has been granted a license to practice law in Vietnam in accordance with the Law on Lawyers.

(7) In cases as prescribed by international treaties to which the Socialist Republic of Vietnam is a member.

(8) Foreigners who marry Vietnamese people and live in the territory of Vietnam.

(9) Other cases as prescribed by the Government.

In addition, the case of foreign workers not subject to work permit requirements is also guided by Article 7 of Decree 152/2020/ND-CP, amended by points a and b of Clause 4, Article 1 of Decree 70/2023/ND-CP:

(1) Being the owner or capital contributor of a limited liability company with a capital contribution value of 3 billion VND or more.

(2) Being the Chairman of the Board of Directors or a member of the Board of Directors of a joint-stock company with a capital contribution value of 3 billion VND or more.

(3) Internal movement within enterprises within the scope of 11 service sectors in Vietnam's service commitment schedule with the World Trade Organization, including: business, information, construction, distribution, education, environment, finance, health, tourism, culture and entertainment and transport.

(4) …

Therefore, if a foreign investor is an individual and does not fall under one of the categories exempt from work permits, they must apply for a work permit in accordance with Vietnamese law in order to work legally here.

3. What is the validity period of a work permit for an individual who is a foreign investor?

According to Article 155 of the 2019 Labor Code, the maximum duration of a work permit for a foreign investor is 2 years. In case of renewal, the work permit can only be renewed once for a maximum period of 2 years. This means that the total maximum time a foreign investor can work in Vietnam with a work permit, including renewals, is 4 years.

4. The minimum number of remaining days of the work permit for a foreign investor to be able to renew it.

According to Article 16 of Decree 152/2020/ND-CP, in order to be renewed, the foreign investor's work permit must have at least 5 days but no more than 45 days remaining. In addition, the renewal of the work permit must also meet the following conditions:

- The need to employ foreign workers must be approved by the competent authority in accordance with Article 4 or Article 5 of this Decree.

- There must be documentation proving that the foreign worker will continue to work for the employer in accordance with the terms of the issued work permit.

Compliance with these conditions ensures that the work permit renewal process is carried out in accordance with the law.

Commitment to service quality:

HTC Vietnam Law Firm operates with the motto of dedication – efficiency – credibility, and is committed to ensuring the quality of its services, specifically as follows:

- Ensure that work is completed according to the agreed schedule, in compliance with legal regulations, and in accordance with the code of ethics and conduct for Vietnamese lawyers.

- We prioritize customer interests and strive to provide our customers with the best possible service quality.

- Protect the information provided by customers and information related to customers.

We look forward to a long-term partnership and mutual growth with our valued customers.

Best regards!

(Author: Tien Manh; Translator: Nguyen Phuong Anh; Date: August 1, 2024)

For detailed advice, please contact:

HTC Vietnam Law Firm

Address: 15th Floor, Multi-purpose Building, 169 Nguyen Ngoc Vu Street, Yen Hoa Ward, Hanoi City.

Phone: 0989.386.729

Email: hotmail@htcvn.vn

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