Current mechanism from 01/7/2026: labor subleasing enterprises no longer apply for, renew or re-issue operating licenses. Instead, they need only do three things: (1) place an escrow deposit of VND 2,000,000,000 at a Vietnamese commercial bank or a foreign bank branch in Vietnam; (2) notify the Department of Home Affairs where the head office — and any branches/representative offices — are located; and (3) submit quarterly reports and submit to post-activity inspection. This is the single biggest change every operator in this sector must understand.
1. Legal basis of the new mechanism
Resolution 66.18/2026/NQ-CP (issued 18/5/2026, effective 01/7/2026–28/02/2027) on decentralization and administrative-procedure reduction has suspended all procedures for issuance, renewal, re-issuance and revocation of labor subleasing operating licenses (Appendix I.4 of the Resolution). In parallel, the Investment Law 143/2025/QH15 (Article 7 and Appendix IV, applicable from 01/7/2026) has removed “labor subleasing services” from the list of conditional business lines.
Key note: this mechanism is temporary, ending 28/02/2027. After that date, businesses must await new guidance from the competent authority — the current regime must not be assumed permanent.
2. The three obligations businesses must fulfill
2.1. VND 2 billion escrow deposit
Enterprises must deposit VND 2,000,000,000 at a Vietnamese commercial bank or a lawfully established foreign bank branch in Vietnam. The escrow secures wage payments and protects the rights of subleased workers if the enterprise faces difficulties.
2.2. Notification to the Department of Home Affairs
Enterprises notify the Department of Home Affairs of the locality where the head office is located, and of localities where branches or representative offices operate (using the form in Appendix I.4 of Resolution 66.18/2026/NQ-CP). This is a notification procedure, not a licensing application — the state agency receives it and conducts post-activity inspection.
2.3. Quarterly reports and post-activity inspection
Enterprises submit quarterly reports (before the 5th day of the first month of the quarter, using Form No. 03 of Appendix I.4) to the competent authority, and submit to state inspection and supervision after commencing operations.
3. Underlying legal framework still applicable
- Labor Code 2019 (Articles 52–57) — the foundational framework for labor subleasing (consolidated text VBHN 18/VBHN-VPQH of 2026).
- Decree 145/2020/ND-CP (Articles 18–31, Appendices II/III) — partially in force: capability conditions, escrow, and enterprise responsibilities.
- Decree 283/2026/ND-CP (10/9/2026) — administrative sanctions in the labor domain, replacing Decree 12/2022/ND-CP.
4. Capability conditions (for reference)
Under Decree 145/2020/ND-CP (Article 21), labor subleasing enterprises must meet capability conditions including: the legal representative must have no criminal record and at least 03 years of professional or managerial experience in labor subleasing/supply within the preceding 05 years; subleasing is permitted only for jobs on the permitted list (Appendix II of Decree 145/2020/ND-CP — consult the original text; do not extrapolate).
5. Licenses issued before 01/7/2026
Operating licenses issued before 01/7/2026 continue under transitional arrangements. The VND 2 billion escrow obligation, protection of subleased workers’ rights, and periodic reporting remain fully applicable.
6. Violations and sanctions
Violations in labor subleasing are sanctioned under Decree 283/2026/ND-CP (replacing Decree 12/2022/ND-CP). The inherited fine framework includes: operating without meeting conditions, VND 50–75 million; violations on the permitted job list or forged licenses, VND 80–100 million — businesses should verify the original text of Decree 283/2026/ND-CP for the exact articles, clauses and applicable fine levels.
7. Risks and recommendations
- Do not confuse “notification” with “licensing”: do not wait for a new license — complete the escrow, notification and quarterly reporting now.
- Watch the 28/02/2027 milestone: the suspension ends; update to the new regime promptly to avoid operational disruption.
- Sublease only listed jobs: consult Appendix II of Decree 145/2020/ND-CP (original text); do not expand on your own.
- Protect subleased workers’ rights: wages, insurance, working conditions — the focus of post-activity inspection.
- Keep full records of escrow, notifications and quarterly reports for inspections.
8. FAQs
Do I still need a labor subleasing license in 2026?
No. From 01/7/2026, Resolution 66.18/2026/NQ-CP suspended all issuance/renewal/re-issuance/revocation procedures. Enterprises complete the VND 2 billion escrow, notify the Department of Home Affairs, and report quarterly.
What is the escrow amount for labor subleasing?
VND 2,000,000,000, deposited at a Vietnamese commercial bank or a foreign bank branch in Vietnam.
When are periodic reports due?
Quarterly, before the 5th day of the first month of the quarter (Form No. 03, Appendix I.4).
How long does the current mechanism last?
Until 28/02/2027 under Resolution 66.18/2026/NQ-CP. New guidance is awaited after that.
Are licenses issued before 01/7/2026 still valid?
They are handled under transitional arrangements; escrow, worker protection and reporting obligations remain fully applicable.
9. Legal sources
- Resolution 66.18/2026/NQ-CP (effective 01/7/2026–28/02/2027)
- Labor Code 2019 (Articles 52–57)
- Decree 145/2020/ND-CP (Articles 18–31, Appendices II/III)
- Investment Law 143/2025/QH15 (Article 7, Appendix IV)
- Decree 283/2026/ND-CP (replacing Decree 12/2022/ND-CP)
Contact FLAT Law Firm: For advice on escrow, notification and reporting obligations in labor subleasing, or handling labor violations in Vietnam, please contact FLAT Law Firm.
Disclaimer: This article provides general legal information only and does not constitute legal advice for any specific case. Laws and regulations may change; please consult a lawyer before applying.
Transparency notice: This article was prepared by our editorial team with quality review (QA) support from the AI Legal Council; it has not been reviewed or approved by a human lawyer.