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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 9th: Work Permit for Foreigners
In order for foreigners to work in Vietnam, a work permit that allows employment is required. Most Japanese nationals are required to obtain this work permit, but in recent years, the stringent conditions have led to an increase in cases where it cannot be obtained. This article will provide an overview of the work permit and explain how to obtain it.
Work Permit
To obtain a work permit, Japanese nationals are required to submit the following documents. The application must be submitted to the Department of Labor of the People’s Committee of the city or province that has jurisdiction over the company’s location as stated in the Enterprise Registration Certificate (ERC) of each company.
１）Curriculum Vitae (CV)
２）University Graduation Certificate (including vocational schools and junior colleges)
３）Criminal Record Certificate
４）Transfer Order
５）Health Certificate (preferably obtained in Vietnam)
６）Notarized Copy of Passport
In addition to the basic requirements, the type of work permit can also determine if additional documents are needed. For example, if you are working in a manufacturing company located in an industrial zone, you would need to apply through the industrial zone management committee. The application process typically takes around 2 months on average, and the application fee for a new work permit is 400,000 VND (about $25 USD). However, there are also cases where a work permit can be exempted. For instance, if you are the spouse of a Vietnamese citizen, you may be exempt from needing a work permit. So it’s important for anyone applying for a work permit to first confirm if they are eligible for an exemption.
2. There are 3 main types of work permits in Vietnam:
For Japanese nationals, there are 3 types of work permits that can be obtained:
- Among the 3 types of work permits, the “Specialist” work permit is the one with the highest number of approvals. The requirements to qualify for this permit include: Graduation from a 4-year university with a major related to the job duties after assignment Having at least 3 years of work experience in the relevant field Or holding a certificate as a specialist issued by a foreign organization, company or institution
- For the “Manager” work permit, the eligible applicants include: Persons whose names are listed on the Enterprise Registration Certificate (ERC) as the head of the organization/agency or someone delegated by them. Persons who participate in the Shareholders’ General Meeting as per the company’s charter.
- For the “Engineer/Technician” work permit, the requirements include: At least 3 years of technical experience in the relevant field A certificate proving at least 3 years of enrollment at a university or college Additionally, if the applicant holds a specialized certification, it may substitute for the university/college graduation certificate. Therefore, verifying the relevant professional certifications is crucial.
3. Recent trends in obtaining work permits
Compared to the period before the COVID-19 pandemic, the difficulty for Japanese people to obtain a work permit in Vietnam has increased significantly. Two main factors can be identified that have contributed to this increased difficulty.
1. Tighter employment of foreigners
In order to promote employment for Vietnamese citizens, the Vietnamese government has stopped allowing companies to recruit personnel from other countries as easily as before. Instead, companies must first advertise job openings to Vietnamese citizens, and can only recruit foreign nationals if they cannot find suitable candidates domestically. Furthermore, companies must provide evidence of their recruitment activities, such as job postings, posters, and listings on job sites, etc.
2. Mismatch between department and job.
In Vietnam, the assessment of the alignment between an applicant’s academic background and the actual job duties is extremely strict. According to the sharing of consultants who support the entry of Japanese people into Vietnam, there has been a case where a graduate from the Faculty of Law at Waseda University, Japan, working in a bank, could not obtain a work permit in Vietnam due to the mismatch between his academic discipline and the job. Fields like Economics may be relatively easier to obtain permits, as the related job positions are broader, but disciplines like Literature are more challenging. Vietnam has a strong belief that workers should be closely tied to their academic specialization. These cultural differences pose significant challenges for foreigners.
4. To get a work permit
The most suitable solution to this problem is to assign a job title related to the person’s academic background when working in Vietnam. For example, someone who majored in English and American Literature could be given a title like “European Region Specialist”. This can help preemptively avoid any issues. For employees being sent from the headquarters to Vietnam, they should coordinate with the company beforehand to modify the job title accordingly. However, for large corporations, changing job titles can be challenging, so thorough consultation should be done prior to making any decisions.
First, one must prepare all the necessary documents for the application process, and also confirm if they are exempt from specific requirements, in order to ensure a smooth procedure. In the past, the practice of paying commissions to officials was widespread, but this has significantly subsided, and the review process has become more stringent. Normally, it takes about 2 months from the time of application to the time of resolution, but if you factor in the time required for preparing the documents for Vietnamese employees beforehand, the total time can be close to 3 months, and the process has become more complex. Therefore, it is not easy for the company to handle all the procedures on their own, which is why many companies choose to outsource the application process to service providers.
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
