This question grows more common with cross-border remote work. The right answer is neither an absolute “yes” nor “no”, but a boundary test: who is the real employer of that work?
Why the “purely online for abroad” case sits outside the permit mechanism
Vietnam’s work permit system is designed around one specific relationship: an employer in Vietnam (an enterprise or organization registered in Vietnam) justifies demand, files the dossier and is responsible for managing the worker (Decree 219/2025/ND-CP; Articles 151–152 of the 2019 Labor Code). A foreigner physically in Vietnam who:
- Holds an employment contract with an overseas company, paid from abroad;
- Works entirely for overseas operations, with no unit in Vietnam assigning or managing the work;
- Holds no position in any Vietnamese legal entity;
has no entity in Vietnam with standing (and obligation) to apply for a permit for them. The practical test: if this person left Vietnam tomorrow and did the same work from another country, and no relationship in Vietnam changed — that is the signature of a case outside the work permit regime.
Blurred line 1 — “Online” work that serves a Vietnamese unit
The boundary collapses when the parent company has a presence in Vietnam and the work substantively flows into that presence: the expert “works for the parent” but daily directs the team at the Vietnam plant, approves matters for the subsidiary, meets the Vietnamese entity’s clients. Authorities look at the substance of the relationship (who assigns, who manages, who benefits), not the “remote” label. When the substance is work for a Vietnamese unit, a work permit is mandatory — and the Vietnamese unit is the one that must apply.
Blurred line 2 — Residence and tax, the forgotten fronts
- Residence: not needing a work permit does not mean being allowed to stay indefinitely. Long-term remote workers need an appropriate entry/residence status; living for months on consecutive tourist visas is risky practice;
- Personal income tax: the tax-residence test (presence of 183 days or more in a year, or a regular place of abode) is wholly independent of work permits. A Vietnam tax resident must declare worldwide income in Vietnam (with foreign tax credit mechanisms under double-tax treaties where applicable);
- Permanent establishment of the parent: an employee regularly concluding/developing business in Vietnam for the parent can create a permanent establishment — a risk borne by the parent company, not just the individual.
Conclusion: “no work permit needed” is the right conclusion for the purely-foreign remote model — but it is only one third of the compliance picture. Companies and individuals using this model must simultaneously solve lawful residence and tax, and must re-examine the position the moment the work starts touching any unit in Vietnam.
Frequently Asked Questions
Does someone sitting in Vietnam working online for a foreign company need a work permit?
Under the structure of Vietnamese labor law: a work permit is issued on the basis of an employer in Vietnam filing the dossier and obtaining demand approval (Decree 219/2025/ND-CP). If the foreigner works remotely only for an overseas organization — no Vietnamese company hires, pays or manages them — no applicant entity exists, and the case sits outside the work permit mechanism. This conclusion holds only while the line “not serving any unit in Vietnam” is genuine — see the next question.
When does online work from Vietnam become work that needs a permit?
When the work in substance serves a unit in Vietnam: a subsidiary, branch or office of that same parent company in Vietnam assigns, manages, accepts or directly benefits from the work. A Vietnamese employment relationship has then formed (even if salary is paid from abroad), and the Vietnamese unit must obtain a work permit for the worker as in any other case. The label “remote for the parent company” cannot cover the substance if the day-to-day work nexus is in Vietnam.
If no work permit is needed, what other legal risks remain?
Three main risks: (1) Residence: long-term stay in Vietnam needs an appropriate visa/residence status — living and remote-working long-term on tourist visas is a grey zone as to entry purpose; (2) Personal income tax: a foreigner present in Vietnam 183 days or more in a year is a tax resident and must declare worldwide income in Vietnam under personal income tax law; (3) For the parent company: if the employee’s activity in Vietnam is a regular business activity for the parent, permanent-establishment and business-registration issues may arise.
Contact us
FLAT Law Firm advises FDI companies and foreign employees on work permits, visas and temporary residence cards in Vietnam. Contact us for advice on your specific case.
This content is general information only and is not a substitute for legal advice on a specific case.
This article has been quality-reviewed by the FLAW AI Legal Council