As Vietnam’s economy grows, the demand for foreign workers has also grown due to the lack of local qualified workers and an increasing number of foreign businesses setting up here. As more and more foreign workers enter the country, businesses must be cognizant of the regulations related to the acquisition of work permits before signing an official labor contract with them and Temporary Residence Cards (TRC) in Vietnam. Although Vietnam has entered into a phase of “new normal” as of the year 2022 and entering 2023 in terms of recovery from the pandemic and entry restrictions, there are some regulations that you need to be aware of.
Updated on the 20th of October 2022 according to recent regulations
Difference between a Vietnam Work Permit and a Temporary Residence Card
A Temporary Residence Card (TRC) and a work permit are commonly confused by foreigners. If you already know the difference, you can skip this part.
A TRC enables foreigners to stay in Vietnam legally for a longer time than their initial visa. The TRC allows the to work, study, do business, or conduct research depending on what kind of visa they are holding. With a TRC, foreigners can remain legally in the country as long as the TRC is still valid and with an appropriate purpose. Furthermore, foreign nationals that are TRC holders can enter and leave Vietnam multiple times without having to apply for a visa renewal or extension.
A work permit, on the other hand, permits foreigners to be employed, work, and perform business activities that can bring in income and profits. A Vietnam work permit is valid for up to 24 months and is only allowed to be renewed once.
Work Permit Requirements
To apply, foreigners must satisfy the following requirements:
- Be at least 18 years old
- Must have relevant technical skills and professional qualifications
- Fit to work, mentally and physically (proven by a medical examination)
- Not have previous criminal records or activities in their home country
- Foreign employees engaged in Vietnam’s pharmaceutical industry, private medical industries, or industries involved in the direct assessment or treatment of diseases are required to abide by restrictions outlined in accordance with such practices.
RELATED: Vietnam Visa Application Updates for 2021
Temporary Residence Card Requirements
Foreign nationals who meet one of the following criteria can apply for a TRC:
- Be an owner of a limited liability company with 3 Billion VND in Capital, if one person
- Be a member of a limited liability company with two members or more and each member must contribute at least 3 billion VND
- People who come to Vietnam to work with certain Vietnamese authorities
- A registered lawyer authorized for law practice in Vietnam
- A family member of a Vietnamese national
- A foreigner with a work permit/exemption of work permit in a company
- A Head of representative offices or projects of international organizations and foreign non-governmental organizations in Vietnam;
- Representatives of various foreign economic, cultural, and professional groups in Vietnam, including heads of representative offices, branches of foreign traders, and representatives of such organizations
- Journalists who have permanent residences in Vietnam
- Foreign nationals serving in diplomatic or consular missions, representative offices of UN-affiliated international organizations, or non-governmental organizations in Vietnam, as well as their spouses, children, and aides traveling with them
- A foreign student or intern (must have a letter of invitation from the inviting organization)
Updates on the Vietnam Work Permit and TRC
The following are some of the most recent developments that all overseas firms and people should be aware of:
1. Foreign Investor? Updated TRC Restrictions in regard to capital contributions
Now, each foreign individual must invest at least VND3 billion in a company to be eligible for a TRC.
For even larger investments, foreigners will get a TRC for up to 10 years.
- DT1 – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 100 billion
- DT2 – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 50 billion to less than VND 100 billion
- DT3 – Issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam and contributing capital of VND 3 billion to less than VND 50 billion.
However, for those who do not fulfill the minimum capital investment for a TRC, they are eligible to apply for a DT4 investor visa with a maximum validity of one year.
2. Foreigners with a legitimate Vietnamese spouse are not required to get a work permit in Vietnam
If you are married to a Vietnamese spouse you are exempt from certain immigration rules and they are allowed to work without a work permit.
Legal Resources:
NOTE: We do not process individual Immigration inquiries. If you are interested in Incorporation, accounting, and other corporate services, then we can offer TRC and Work Permits as a bundle.
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