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Foreigners working in Vietnam 2026: what work permit and social insurance do you need?

By Nguyễn Quốc Trung — Deputy General Director · Updated 2026-09-03

FDI enterprises bringing foreign experts, executives or engineers to Vietnam in 2026 must get two things right in parallel: the work permit and compulsory social insurance. Both have just changed their legal basis. This article is for directors and HR managers: who is required to hold a permit, who is exempt, the paperwork and timelines, which types of insurance foreign workers pay (and why the rate differs from Vietnamese workers), the fines for working without a permit, and how to handle the case where the overseas parent company does not yet have a legal entity in Vietnam.

In 2026, which decree governs foreigners working in Vietnam?

The governing document currently in force is Nghị định 219/2025/NĐ-CP (Decree 219/2025/NĐ-CP), effective from 7 August 2025 and still in force in 2026. This decree has 5 chapters and 36 articles, and fully replaces Nghị định 152/2020/NĐ-CP and Nghị định 70/2023/NĐ-CP — the two older documents ceased to be effective on 7 August 2025.

This is the first point HR needs to note: any old document, internal procedure or guidance note that still cites Nghị định 152/2020 or 70/2023 as the current basis has been wrong since 7 August 2025. Forms and foreign-worker recruitment checklists should be reviewed against the new document.

Four major changes in Nghị định 219/2025:

• Merged procedures. Previously you had to prepare a separate "report explaining the need to use foreign workers" before applying for the work permit — now this is integrated into a single permit application file.
• Transfer of licensing authority to the provincial People's Committee where the worker is expected to work.
• Shorter timeline. The permit is issued within 10 working days from the date a complete and valid file is received; if it is not issued, the authority must reply in writing stating the reason within 03 working days.
• Additional exemptions for people working in finance, science, technology, innovation, national digital transformation and other priority fields.

The foundation is still Bộ luật Lao động 2019 (the 2019 Labour Code). Article 151 sets the conditions for foreign workers (at least 18 years old, with full civil-act capacity, appropriate expertise and experience, good health, not currently serving a sentence, and holding a work permit unless exempt). Article 152 limits this: enterprises may only recruit foreign workers into managerial, executive, expert and technical worker positions that Vietnamese workers cannot yet fill.

Who must apply for a work permit and who is exempt?

The principle: a foreign worker working in Vietnam must hold a work permit, except for cases exempt under Article 154 of Bộ luật Lao động 2019 and the guidance in Nghị định 219/2025.

Groups not subject to work permit issuance include:

• Owners or capital-contributing members of an LLC with a capital contribution value of VND 3 billion or more.
• Chairpersons or members of the Board of Directors of a joint-stock company with a capital contribution value of VND 3 billion or more.
• Heads of representative offices/projects or persons chiefly responsible for the activities of an international organisation or foreign non-governmental organisation.
• Entering Vietnam for under 03 months to offer services for sale.
• Entering Vietnam for under 03 months to handle incidents or complex technical situations.
• Foreign lawyers who have been granted a practising licence in Vietnam.
• Intra-corporate transfers within the 11 service sectors under Vietnam's WTO commitments.
• Performing international agreements; pupils and students on internships; family members of staff of foreign representative missions.
• People working in the newly added priority fields (finance, science, technology, innovation, digital transformation) under Nghị định 219/2025.

One important warning to avoid wasted money: exemption does not mean there is nothing to do. Most exempt cases still require a written confirmation of exemption from the work permit requirement; the file must be submitted at least 10 days before, and within 60 days of, the date the worker is expected to start work. Without this confirmation, the worker is still treated as not holding a permit.

For the newly added priority fields (finance, science, technology, digital transformation), the specific list and criteria are confirmed by a ministry or the provincial People's Committee. This part does not yet have consistent detailed guidance nationwide, so enterprises should check with the local labour authority first rather than assuming their people are automatically exempt.

What documents does a work permit application need, and how long does it take?

Under Nghị định 219/2025, the process is more streamlined than before: the "report explaining the need to use foreign workers" step now sits within the permit application file, and is no longer a separate procedure. The file is submitted at the provincial People's Committee where the worker is expected to work.

On documents, the enterprise must prove the worker meets the conditions in Article 151 of Bộ luật Lao động 2019: documents proving professional/technical qualifications and experience suitable for the position, a health certificate, a judicial record (not currently serving a sentence), together with the employer's file. Documents issued abroad usually require consular legalisation and notarised translation — this is the most time-consuming step and should be planned for in advance.

On timing: the authority issues the permit within 10 working days from the date a complete and valid file is received. If it is not issued, it must reply in writing stating the reason within 03 working days. This figure of 10 days only counts from when the file is already valid, and does not include the time to prepare and legalise foreign documents.

On the permit's term (Article 155 of Bộ luật Lao động 2019): a maximum of 02 years; on expiry it may only be renewed once, with a renewal term of at most 02 years as well. The specific term is determined by the intended labour contract or the term of the foreign secondment, but not exceeding 2 years. HR should set a reminder before the expiry date: if the permit expires while the worker keeps working, this is treated as working without a permit.

What types of insurance do foreigners pay in Vietnam?

The current basis is Luật Bảo hiểm xã hội 2024 (Luật số 41/2024/QH15) (the 2024 Law on Social Insurance) and Nghị định 158/2025/NĐ-CP (replacing Nghị định 143/2018/NĐ-CP), both effective from 1 July 2025.

A foreign worker is subject to compulsory social insurance when working under a fixed-term labour contract of 12 months or more with an employer in Vietnam and holding a valid work permit or practising certificate. Two excluded cases: persons on intra-corporate transfer and persons who have reached retirement age.

Foreign workers take part in the following schemes: sickness, maternity, occupational accident and disease, retirement and survivorship. They do not take part in unemployment insurance, because Luật Việc làm 2025 (Luật số 74/2025/QH15) (the 2025 Employment Law) provides that those who pay unemployment insurance are Vietnamese citizens. It is precisely because unemployment insurance is absent that the contribution rate for foreign workers differs from that for Vietnamese workers.

Contribution rates in 2026 (no unemployment insurance):

• Foreign workers pay 9.5% = 8% social insurance + 1.5% health insurance. (Vietnamese workers pay 10.5% because of an additional 1% unemployment insurance.)
• The enterprise pays the insurance portion of 20.5% = 17% social insurance + 0.5% occupational accident and disease insurance + 3% health insurance. (For Vietnamese workers it is 21.5% because of an additional 1% unemployment insurance.)
• Adding 2% trade union funding on the payroll fund, the enterprise's total non-wage cost for foreign workers is 22.5% (for Vietnamese workers it is 23.5%).

On the contribution cap: the salary used as the basis for social and health insurance is capped at 20 times the reference level. From 1 July 2026, the reference level is VND 2,530,000/month (Nghị định 161/2026/NĐ-CP), so the contribution cap is VND 50,600,000/month. Salaries higher than this still only pay insurance on a base of VND 50.6 million.

How much does insurance for one foreign expert cost per month?

Example: an FDI electronics factory in Binh Duong hires a South Korean chief engineer, salary VND 70 million/month, a 24-month labour contract, with a work permit already in place. This person is subject to compulsory social insurance.

Because the VND 70 million salary is above the cap, the contribution base is capped at VND 50,600,000. Calculated on this base:

• The worker (the South Korean engineer) pays 9.5% = 50,600,000 × 9.5% = VND 4,807,000/month.
• The enterprise pays the insurance portion of 20.5% = 50,600,000 × 20.5% = VND 10,373,000/month.
• Adding 2% trade union funding = VND 1,012,000, the factory's total non-wage cost is 50,600,000 × 22.5% = VND 11,385,000/month.

The comparison shows the difference lies exactly in unemployment insurance: if, at the same salary, this were a Vietnamese engineer, the worker would pay 10.5% = VND 5,313,000 (VND 506,000 more, which is precisely the 1% unemployment insurance), and the enterprise would also pay that same additional 1%. In other words, using foreign workers is not "more expensive" in terms of insurance — the contribution is slightly lower because unemployment insurance is dropped, and in return the worker is not entitled to unemployment benefits in Vietnam.

Note: if the actual salary is lower than or equal to VND 50.6 million, the contribution is on that salary itself, not on the cap.

How much is the fine for using foreign workers without a permit?

The sanction is in Article 32 of Nghị định 12/2022/NĐ-CP. An employer using foreign workers without a work permit, or without a valid written confirmation of exemption from the permit requirement, is fined by the number of workers in violation.

Fines applied to organisations (enterprises):

• A violation involving 01–10 people: from VND 60,000,000 to 90,000,000.
• A violation involving 11–20 people: from VND 90,000,000 to 120,000,000.
• A violation involving 21 or more people: from VND 120,000,000 to 150,000,000.

The level applied to individuals is half of the above figures (VND 30–45 / 45–60 / 60–75 million). The foreign worker themselves, working without a permit or confirmation, is fined VND 15,000,000 to 25,000,000 and is subject to the additional penalty of expulsion.

Two points easily overlooked: first, the fine is counted per person, so just a few experts missing paperwork adds up very fast; second, missing the written confirmation of exemption is also treated as being without a permit — an enterprise assuming its people are exempt and therefore doing nothing still gets fined.

How do you hire people when the overseas parent has no legal entity in Vietnam yet?

This is a very common situation with FDI clients: the parent group wants to send people over to survey, run a project or trial the market, but has not yet set up a company, branch or representative office in Vietnam.

The legal obstacle lies in Article 2 of Nghị định 219/2025: only entities with a presence in Vietnam may act as the user and sponsor of a work permit application — including enterprises, agencies/organisations, contractors, diplomatic missions, international organisations, individuals permitted to do business, together with representative offices/branches of foreign traders and the operating offices of investors under a BCC (Business Cooperation Contract). A foreign legal entity with no presence in Vietnam is not on this list, and so cannot directly sponsor a work permit.

The "intra-corporate transfer" category does not rescue this situation either, because it only applies where the foreign enterprise has already established a commercial presence in Vietnam and the worker has been continuously employed for at least 12 months before being seconded. With no presence, it is not considered an intra-corporate transfer.

Three lawful ways forward:

• (a) Establish a commercial presence — set up an FDI-invested company, branch or representative office in Vietnam, then have this entity sponsor the work permit. Suitable when the group has decided on long-term investment.
• (b) Use a Vietnamese legal entity as the official employer — the labour formalisation/EOR model: the Vietnamese entity signs the labour contract, applies for the work permit in its own name, and pays social insurance for the foreigner. Suitable when people need to come over quickly and there is no wish or time yet to set up a separate entity.
• (c) Where the party is a contractor that has won a bid in Vietnam, follow the procedure for contractors, with the participation of the investor or the bid-inviting party.

Where should an enterprise start?

A practical sequence to get it right from the outset, rather than firefighting during an inspection:

1. Classify the worker. Determine whether the person is required to hold a work permit or is exempt. If exempt, you still must obtain the written confirmation of exemption, submitting the file at least 10 days before (and within 60 days of) the expected start date.
2. Identify the entity that signs. Do you already have a legal entity in Vietnam to act as the employer? If not, choose option (a), (b) or (c) above straight away before bringing people over.
3. Prepare the merged file (needs report + permit application file), submitted at the provincial People's Committee where work is expected. Allow 10 working days for processing, plus time for consular legalisation and notarised translation of foreign documents.
4. Register for insurance at the right time. As soon as the work permit and a labour contract of 12 months or more are in place, register for compulsory social insurance: worker 9.5%, enterprise 20.5% for the insurance portion, no unemployment insurance, and remember the VND 50.6 million cap.
5. Track the permit's expiry. Set a renewal reminder before expiry (renewable only once, up to 2 years). Continuing to work after expiry is a violation.

Following this chain means the work permit and insurance line up in timing, avoiding a gap that leaves the worker unprotected and exposes the enterprise to fines.

Frequently asked questions

Does a foreigner on a labour contract of under 12 months have to pay compulsory social insurance?

No. The condition for compulsory social insurance is a fixed-term labour contract of 12 months or more with an employer in Vietnam, together with a valid work permit or practising certificate. A contract shorter than 12 months is not subject to this. Note that the work permit condition must still be met independently of the insurance question.

What is the maximum term of a work permit, and how many times can it be renewed?

A maximum of 02 years, and it may only be renewed once, with a renewal term of at most 02 years as well. After that renewal, continuing to use the worker usually requires applying for a new permit. Each permit's specific term is determined by the intended labour contract or the term of the foreign secondment, but does not exceed 2 years.

How much capital must a foreigner contribute to be exempt from a work permit?

VND 3 billion or more. Owners or capital-contributing members of an LLC, and Chairpersons or members of the Board of Directors of a joint-stock company, with a capital contribution value of VND 3 billion or more, are exempt from the work permit. Although exempt, they must still obtain the written confirmation of exemption, submitting the file at least 10 days before (and within 60 days of) the expected start date.

Does an exempt person have to complete any procedures?

Yes. Most exempt cases must still obtain a written confirmation of exemption from the work permit requirement; the file must be submitted at least 10 days before, and within 60 days of, the date the worker is expected to work. Without this confirmation, the worker is still treated, and the enterprise still fined, as in the case of not holding a permit.

From 2026, where do you submit a work permit application?

At the provincial People's Committee where the worker is expected to work. Nghị định 219/2025 has transferred licensing authority to the provincial level and merged the needs-report step into the single file, so the enterprise submits only once instead of splitting it into two procedures as before.

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Bringing foreign workers into Vietnam lawfully is a matter of coordinating the work permit, the contract and insurance — getting one step wrong creates the risk of fines and a gap in entitlements. If the parent company does not yet have a legal entity in Vietnam, or the HR team wants a single point of contact to stand as the named employer and handle the entire file, you may consider Nhân Kiệt's [labour formalisation](/hop-thuc-hoa-lao-dong/) service and [EOR in Vietnam](/eor-vietnam/) model to choose the direction that fits the enterprise's plans.

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