Key Changes in the Draft Decree on Foreign Employment

The Ministry of Home Affairs (MOHA) has recently developed a new Draft Decree concerning foreign laborers working in Vietnam, which is specifically designed to supersede the existing regulatory regime under Decree 152/2020/ND-CP and Decree 70/2023/ND-CP. The Draft Decree is expected to provide an expedited and productive process for foreign employment registration, laying a strong foundation for entities to hire foreign employees with high qualifications while ensuring compliance with the laws. 

Vietnam Foreign Labor Draft Decree 2025 – Key Legal Reforms for Work Permits and Exemptions.

Key Changes Proposed in the Draft Decree

• Faster Work Permit Processing: A major reform is the proposed elimination of the separate prior approval step for foreign labor demand. This process will now be integrated directly into the work permit application. This change is expected to drastically cut down the total work permit processing time to approximately 10 working days from the current 45-60 days. This aims to reduce administrative costs and burdens for both employers and foreign employees.  

• Extension of Exemption Certificates: A practical new provision allows employers to apply for an extension of work permit exemption certificates once, for a maximum term of 2 years, aligning with work permit extension procedures.

• New Work Permit After One Extension: A significant change allows foreign workers who have had their work permit extended once to apply for a new work permit to continue working in the same job and title for the same employer. This applies to all foreign employees, not just experts and technical workers.   

• Extension of Work Permit Exemption’s scope: Foreign employees working in Vietnam under 60 days per year are entitled to WPE, compared to the 30-day period in the current regulation. 

• Decentralization of Licensing Authority: The Draft Decree promotes significant decentralization. While MOHA will handle only specific, special cases (e.g., government agencies, international organizations, multi-province work), the vast majority of applications will be processed by provincial-level People's Committees (PCs), which can further delegate authority. Employers will also have the flexibility to choose whether to submit applications to MOHA or the competent provincial authority.  

• Flexible to Submit Employment Contract: The Draft Decree introduces greater flexibility by indicating that the employers merely submit the certified copy of the employment contract to the WP issuing authority upon requests, which is currently mandatory under the Decree 152.