Reform of Work Permit Procedures for Foreign Employees under Decree No. 219/2025/ND-CP

To meet the urgent demands of the digital economy and attract high-quality foreign investment, the Government of Vietnam has promulgated Decree No. 219/2025/ND-CP on Foreign Employees Working in Vietnam, effective from 7 August 2025. This Decree represents a significant shift in Vietnam's administrative management approach, fundamentally replacing and revising the previous regulations under Decree No. 152/2020/ND-CP and Decree No. 70/2023/ND-CP.

To assist enterprises, organizations, and investors in proactively adapting to the new legal framework, DAVILAW provides below an overview of the key reforms introduced by Decree No. 219/2025/ND-CP.

1. Reform of the Labor Demand Explanation Procedure

One of the most significant administrative bottlenecks under the previous regulations was the separate two-step process. Employers were first required to submit an application explaining the need to employ foreign workers and await approval from the competent authority before filing a separate application for a Work Permit ("WP"). This fragmented process often prolonged the overall preparation and approval timeline.

To address this issue, Decree No. 219/2025/ND-CP officially integrates the labor demand explanation into the Work Permit application dossier. Under the new regulations, a standard application dossier includes:

1. Consolidated Application Form: A combined report explaining the demand for foreign employees and requesting the issuance of a Work Permit, prepared in accordance with Form No. 03 attached to the Decree.
2. Health Certificate: Issued by a competent medical institution. Notably, employers are exempt from submitting a hard copy where the health examination results have been digitized and synchronized with the National Health Database or the Health Examination Information System. Foreign-issued health certificates are recognized only where a treaty or mutual recognition agreement exists between Vietnam and the issuing country, and the certificate must have been issued within the preceding 12 months.
3. Passport: A valid copy of the employee's passport.
4. Criminal Record Certificate: Issued within six (06) months prior to the application date. Employers are likewise exempt from submitting a physical copy where the application is processed through the integrated electronic administrative procedure.
5. Photographs: Two (02) color photographs (4 cm × 6 cm) taken against a white background, without glasses.
6. Documents evidencing the working arrangement and professional qualifications: These include appointment letters, assignment decisions from the parent company (requiring at least 12 consecutive months of prior employment for intra-corporate transferees or 24 consecutive months for service suppliers), together with documents evidencing the employee's status as an Expert, Technical Worker, Manager, or Executive Director as prescribed by law.

Special Note for Small Enterprises: Foreigners serving as the Chairman of the Board of Directors, members of the Board of Directors of a joint-stock company, or owners/members of a limited liability company with a capital contribution of less than VND 3 billion are additionally required to submit documents demonstrating their managerial competence or qualifications relevant to the proposed position.

2. Shortened Processing Time and Streamlined Administrative Authority

The consolidation of the two administrative procedures results in significant improvements regarding both processing time and the competent authority.

Processing within 10 Working Days

Upon receipt of a complete and valid application dossier, the competent authority is required to simultaneously assess both the employer's demand to employ foreign workers and the Work Permit application within 10 working days.

Where the application is rejected, the authority must issue a written notice specifying the reasons for refusal within three (03) working days.

Compared with the previous mechanism under Decree No. 70/2023/ND-CP, which provided a five-working-day processing period solely for the Work Permit application after the labor demand approval had already been obtained. The new procedure offers employers a more predictable and streamlined approval process.

Decentralization of Authority to Provincial Authorities

Decree No. 219/2025/ND-CP delegates the authority to issue, re-issue, renew, and revoke Work Permits entirely to the Provincial People's Committees ("PPCs") where foreign employees are expected to work, including at representative offices, branches, and business locations.

In particular, where a foreign employee works for the same employer across multiple provinces or cities, the PPC of the province where the employer's head office is located will serve as the single competent authority responsible for processing the application. This mechanism eliminates the previous uncertainty arising from multi-provincial administrative procedures.

The PPCs are also empowered to further delegate these responsibilities to their specialized subordinate agencies to enhance administrative efficiency.

3. Expansion of Work Permit Exemptions for Strategic Technology Sectors

To support Vietnam's efforts to attract global investment in high-tech industries including artificial intelligence (AI), semiconductor manufacturing, and digital transformation, the Government has introduced a notable new exemption.

Accordingly, foreign nationals working in the fields of finance, science, technology, innovation, national digital transformation, and other sectors prioritized for Vietnam's socio-economic development may be certified as not subject to Work Permit requirements, provided that such status is confirmed by the relevant Ministry, ministerial-level agency, or Provincial People's Committee.

This newly added exemption supplements the existing categories of Work Permit exemptions, which remain applicable, including:

1. Cases specified in Clauses 3, 4, 5, 6, 7, and 8 of Article 154 of the Labor Code;
2. Owners or capital-contributing members of limited liability companies with a capital contribution of VND 3 billion or more;
3. Chairpersons or members of the Board of Directors of joint-stock companies with a capital contribution of VND 3 billion or more;
4. Foreign experts providing technical consultancy or project management services for officially concluded ODA-funded projects;
5. Foreign journalists accredited by the Ministry of Foreign Affairs of Vietnam;
6. Personnel assigned to teach or manage educational institutions established by foreign diplomatic missions or international organizations in Vietnam.

4. Legal Recommendations for Foreign Employers

Decree No. 219/2025/ND-CP clearly reflects the Government's policy of simplifying administrative procedures while simultaneously imposing greater accountability on employers regarding the accuracy and consistency of submitted information.

To facilitate a smooth transition, employers should consider the following:

1. Review position eligibility: In particular, employers with charter capital below VND 3 billion should ensure that sufficient documentation is available to demonstrate the qualifications and managerial capacity of foreign personnel intended to hold management positions.
2. Maximize the use of digital databases: Employers should proactively verify whether employees' health records and criminal record information have been integrated into the relevant electronic databases to minimize documentary requirements.
3. Determine the correct competent authority: Enterprises operating branches or offices across multiple provinces should carefully identify the appropriate Provincial People's Committee with jurisdiction based on the location of the head office or the employee's principal workplace.

Disclaimer: This article is intended solely for general informational purposes and reflects the legal framework in force at the time of publication. Practical implementation may vary depending on guidance issued by competent authorities in different localities. Businesses seeking project-specific legal advice or comprehensive assistance with Work Permit procedures are encouraged to contact DAVILAW's legal team for tailored support.