In this article
Almost every FDI company has a foreign director or expert. Before that person starts work, the company must obtain a work permit for the foreign employee (WP – giấy phép lao động, GPLĐ) or confirm that the person is exempt. This article summarizes the steps, the documents, how to plan the timeline and how the permit links to payroll, insurance and personal income tax. The content was compiled by the accounting services team at ACCA Consulting Vietnam from hands-on work with FDI clients.
1. What is a work permit for a foreigner?
A work permit is issued by the provincial labor authority and allows a foreign national to work for a specific employer, in a specific position and for a specific period. The permit is tied to the company: moving to another company or changing position usually means going through the procedure again.
The rules on foreign workers have changed several times in recent years, including which authority receives applications after the government's administrative restructuring. Before filing, you should therefore re-check the decree currently in force, the forms and the local place of submission. Without a valid work permit, both the employee and the company can be penalized, and the employee may be deported.
2. Steps to obtain a work permit for a foreign employee
- 1Check the category
Determine whether the employee needs a work permit or falls under an exempt case that does not require one.
- 2Explain the demand
The company reports and explains its need to employ a foreign worker for the intended position.
- 3Prepare personal documents
Criminal record certificate, health certificate, degrees, proof of experience, passport, photos.
- 4File the work permit application
Submit online or in person following the provincial authority's guidance.
- 5Sign the employment contract
Once the work permit is issued, sign a written employment contract matching the position and term.
- 6Apply for a temporary residence card
Complete the procedure with the immigration authority on the basis of the work permit.
- 7Register for tax and insurance
Register a personal income tax code, assess compulsory insurance coverage and add the employee to payroll.
If the employee is exempt, the company may still need to obtain a confirmation that the person is not subject to a work permit. How to check each case is covered in foreigners who are not subject to a work permit.
3. Personal documents and planning the timeline
The most time-consuming part is usually not the licensing authority but the foreign documents. Many must be consular-legalized (unless exempt under a treaty) and translated and certified into Vietnamese. Some documents have a short validity period, so they need to be sequenced so that none expires before filing.
| Document | Notes when preparing |
|---|---|
| Criminal record certificate | Obtained in the employee's country of residence, or in Vietnam if currently residing here; watch the validity period |
| Health certificate | Examination at a qualified medical facility; has a limited validity |
| Degrees and certificates | Consular legalization and notarized translation if issued abroad |
| Proof of experience | Confirmed by the previous employer, stating the position and period of employment |
| Passport and photos | Passport must remain valid long enough to cover the temporary residence card application |
| Assignment letter | Applies to intra-corporate transferees or workers performing a contract |
Illustrative example of a timeline the company plans itself; actual times depend on each country and issuing authority.
View as table
| Foreign criminal record certificate | 4 tuần |
| Legalization of degrees | 3 tuần |
| Proof of experience | 2 tuần |
| Health check | 1 tuần |
| Translation and certification | 1 tuần |
4. How does the work permit relate to the contract, insurance and PIT?
For the accounting team, the work permit is more than an HR document. It directly affects how salaries are recorded and what tax obligations arise:
- Employment contract: the contract term must not exceed the work permit term. The contract is the basis for salary costs to be deductible for corporate income tax (CIT/TNDN).
- Compulsory insurance: foreign employees with a work permit and an employment contract may be subject to compulsory social insurance (BHXH) and health insurance (BHYT) under current conditions. See also social insurance for foreign employees.
- Personal income tax (PIT/TNCN): the company withholds tax monthly; whether the employee is tax resident or non-resident determines how tax is calculated and whether family deductions apply.
- Temporary residence card: residence documents are one of the bases for determining a habitual place of residence for PIT purposes.
- A copy of the work permit or the confirmation of exemption, with its validity period.
- The employment contract or assignment letter.
- Passport, visa and temporary residence card; date of first entry.
- Personal tax code and dependant registration file (if any).
- Details of compulsory insurance participation, or the reason for non-participation.
- A renewal schedule for the work permit and temporary residence card, with reminders set several months ahead.
FAQ
Does a director who is also the foreign investor need a work permit?
It depends. An owner, capital-contributing member or board member who meets the capital contribution threshold under current regulations may not be subject to a work permit, but you need to check the confirmation procedure.
Can an expert start work before the work permit is issued?
It is not advisable. Working without a work permit or a valid confirmation can lead to penalties. The company should use a visa that matches the purpose of the visit and wait until all documents are in place before assigning formal work.
Does ACCA prepare work permit applications?
ACCA Consulting Vietnam focuses on accounting, tax and payroll. For the work permit procedure, we provide the document checklist, coordinate with the company's legal adviser and handle payroll, tax and insurance once the permit is issued.
Get foreign experts onto the payroll correctly from month one
Contact ACCA Consulting Vietnam for advice on PIT and insurance for expats. Accounting services based in Ho Chi Minh City, with remote support nationwide.
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