Bringing foreign specialists and executives to work at an FDI company in Vietnam is not just a staffing decision of the parent group — it is a chain of legal procedures: work permits (or exemption confirmations), visas and temporary residence cards, temporary residence registration, and social insurance obligations. Many FDI companies stumble at the seemingly simplest step: appointing a foreign director as legal representative without a valid work permit, or letting specialists work on tourist visas while dossiers are pending — both can lead to sanctions and affect the validity of documents signed by that person.
Quick summary
| Topic | Work permits, work permit exemptions, visas/temporary residence cards and social insurance for foreign managers and specialists at FDI companies |
|---|---|
| For whom | Foreign investors seconding personnel to Vietnam; HR directors of FDI companies; foreigners appointed as managers in Vietnam |
| Points to check | Whether the position requires a work permit or is exempt; work permit dossier filed before the expected start date; valid visa/temporary residence card; mandatory social insurance registered if applicable |
| Desired outcome | Foreign managers working lawfully from day one, appointment decisions and contracts signed by them fully valid, no labour — immigration sanctions |
Key legal issues: working conditions of foreign managers at FDI companies
A work permit is the rule; exemption is a conditional exception. Under Decree 219/2025/ND-CP (effective 07/8/2025, replacing Decree 152/2020/ND-CP and Decree 70/2023/ND-CP), foreign workers in Vietnam must hold a work permit, except exempted cases that still require the confirmation procedure (e.g. owners or capital-contributing members of LLCs, board members of JSCs, persons entering Vietnam for under 3 months to handle technical incidents…). A common FDI misconception: assuming a director appointed by the parent is “automatically” exempt — in reality each title must be checked against the exemption categories and the exemption confirmation completed.
Timing determines legality. The work permit application dossier must be filed before the foreigner’s expected start date; the labour contract with the foreign worker takes effect only after the work permit is issued (except exempted cases). Signing contracts and letting the worker start before the work permit is grounds to sanction both the enterprise and the worker.
Visas and residence cards must match the work purpose. Foreigners working in Vietnam need a labour visa (LD symbol) or labour temporary residence card; working on tourist or family-visit visas violates immigration rules. When issued a work permit valid for 1 year or more, the worker may apply for a temporary residence card of corresponding validity instead of renewing visas repeatedly.
Social insurance obligations for foreign workers. Foreign workers in Vietnam are subject to mandatory social insurance if they hold a work permit and a labour contract of 1 year or more (Decree 158/2025/NĐ-CP). New FDI companies often miss this obligation in the first year, leading to arrears when the social insurance authority inspects.
Legal basis and verification sources
- Labour Code 2019 (45/2019/QH15): general rules on foreign workers in Vietnam
- Decree 219/2025/ND-CP (effective 07/8/2025, replacing Decree 152/2020/ND-CP and Decree 70/2023/ND-CP): work permit conditions and issuance procedures; work permit exemption cases
- Decree 70/2023/NĐ-CP: amending Decree 152/2020 (simplifying some procedures)
- Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam 2014 (47/2014/QH13, amended 2019): visas, temporary residence cards
- Decree 158/2025/NĐ-CP (effective 01/7/2025, replacing Decree 143/2018/NĐ-CP): mandatory social insurance for foreign workers in Vietnam
- Law on Enterprises 2020 (59/2020/QH14): enterprise managers, legal representatives
Verification sources: the Ministry of Home Affairs portal (labour sector) and the Immigration Department (Ministry of Public Security) for current procedures and forms.
Process of bringing foreign managers to work
Step 1 — Determine the job position and permit/exemption status. Match the expected title (general director, factory director, technical specialist…) against the job positions under Decree 219/2025/ND-CP: managers, executive directors, specialists, technical workers. If exempt, prepare the dossier requesting confirmation of non-eligibility for work permit issuance.
Step 2 — Obtain approval of foreign labour demand. Before filing the work permit dossier, the enterprise must report and obtain approval of its foreign labour demand for each job position. This is the step many FDI companies skip, causing the work permit dossier to be returned.
Step 3 — Prepare the work permit dossier. The dossier includes: the work permit application letter; health certificate; criminal record (Vietnamese if resident, or foreign with consular legalisation); documents proving qualifications and experience fitting the position (degrees, experience confirmations); passport. Foreign documents must be consular-legalised and translated/notarised into Vietnamese.
Step 4 — File and receive the work permit. File with the competent authority (Department of Home Affairs/Industrial Park Management Board depending on location) before the expected start date; the statutory processing time is 05 working days from receipt of a complete valid dossier. Sign the official labour contract and arrange work only after the work permit is issued.
Step 5 — Complete visa/residence card and social insurance. Convert to a labour visa or obtain a temporary residence card per the work permit validity; register temporary residence with local police; register mandatory social insurance if the worker is eligible.
Step 6 — Appoint the managerial title in the enterprise. In parallel with the work permit, complete internal procedures: the appointment decision of the owner/Board of Directors, registering changes of managers/legal representative with the business registration authority if the title is also the legal representative.
Common risks
Risk 1 — Working without a work permit. Letting specialists/directors start work on tourist visas while the work permit dossier is pending; on inspection, both the enterprise and the worker are sanctioned, and the worker may be deported.
Risk 2 — Assuming “automatic” work permit exemption. Appointing a foreign director without checking exemption conditions or completing the exemption confirmation; in disputes, the manager’s working status is questioned, affecting the validity of documents signed by that person.
Risk 3 — Skipping the labour demand approval. Filing the work permit dossier directly without approved foreign labour demand; the dossier is returned, delaying timelines while personnel have already arrived in Vietnam.
Risk 4 — Foreign documents lacking consular legalisation. Degrees, criminal records and health certificates issued abroad but not consular-legalised or translated/notarised; the dossier requires repeated supplementation.
Risk 5 — Visa incompatible with purpose. A manager working long-term but maintaining repeatedly renewed tourist visas instead of converting to a labour visa/residence card; risks at immigration and during authority inspections.
Risk 6 — Missing mandatory social insurance. Not registering social insurance for eligible foreign workers; arrears and penalties when the social insurance authority inspects.
Competent authorities and filing points
Approval of foreign labour demand and work permit issuance/exemption confirmation fall under the Department of Home Affairs (formerly Department of Labour — Invalids and Social Affairs) or the Industrial Park/Economic Zone Management Board for enterprises in parks. Visas and temporary residence cards are handled by the immigration authority (Ministry of Public Security). Social insurance registration is done with the social insurance authority where the enterprise is headquartered.
Enterprises in industrial parks should file labour dossiers via the Park Management Board for one-stop guidance in the park, rather than filing directly with the Department.
When to contact a lawyer
A lawyer should be involved when: (1) determining whether a specific title is work-permit-exempt — the boundary between “specialist”, “manager” and “technical worker” directly affects the supporting dossier; (2) personnel have already arrived in Vietnam but the work permit dossier is stuck, needing a lawful contingency plan; (3) the enterprise was sanctioned on foreign labour and needs to assess grounds for appeal or remediation.
What FLAT LAW FIRM does
FLAT LAW FIRM supports FDI companies through the entire foreign personnel procedure chain: reviewing permit/exemption status for each position, preparing and filing foreign labour demand approvals, preparing the work permit dossier (including consular legalisation of foreign documents), advising visa-to-residence-card conversion, and mandatory social insurance registration. We work in Vietnamese, English and Chinese, fitting groups seconding personnel from China and other countries.
See also related pages: Post-licensing compliance for FDI companies | Common mistakes when setting up an FDI company | FDI company setup roadmap in Vietnam
Talk to FLAT LAW FIRM
If your enterprise needs to bring foreign managers or specialists to work in Vietnam, or needs a review of the current work permit — visa — social insurance status of existing personnel, FLAT LAW FIRM can help assess and implement the full package. Please contact us for advice.
FAQ
Is a foreign director automatically exempt from work permits?
Not automatically. The title must be matched against the exemption cases in Decree 219/2025/ND-CP (e.g. owners/contributing members, board members) and the non-eligibility confirmation procedure completed. If not exempt, a work permit must be obtained as usual.
How early must the work permit dossier be filed?
The dossier must be filed before the foreigner’s expected start date, and the labour contract takes effect only after the work permit is issued (except exempted cases). The statutory processing time is 05 working days from receipt of a complete valid dossier.
Can a tourist visa be used to work while awaiting the work permit?
No. Working on a tourist visa violates immigration rules; both the enterprise and the worker may be sanctioned. The worker needs a visa matching the work purpose.
When must foreign workers join mandatory social insurance?
When holding a work permit and a labour contract of 01 year or more in Vietnam, under Decree 158/2025/NĐ-CP. The enterprise must register and pay social insurance for eligible workers.
What conditions apply to foreign documents in the work permit dossier?
They must be consular-legalised (except where exempted by international treaties) and translated/notarised into Vietnamese, including degrees, experience confirmations, criminal records and health certificates issued abroad.
What additional procedures apply when appointing a foreigner as legal representative?
Besides the work permit/visa, the enterprise must complete internal procedures (the owner/Board of Directors’ appointment decision) and register the legal representative change with the business registration authority. The legal representative must reside in Vietnam per the Law on Enterprises 2020.
