Question 160: Are foreign Employees required to participate in compulsory HI when they are appointed to work in Vietnam, having work permits but with or without arising salary in Vietnam?

The Vietnamese law stipulates the subjects participating in compulsory HI, including Employees working under indefinite or definite LCs of 3 months or more; Employees as a paid manager of the enterprise[1]. This provision applies to both Vietnamese and foreign Employees currently working in Vietnam. Accordingly, foreign Employees paid in Vietnam under LCs or appointment letters…

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Question 159: How are prevailing guidelines on online issuance of work permits to foreign Employees performed?

Circular 23/2017/TT-BLDTBXH provides guidelines on: (i) reception of application files for approval on demand for employment of foreign Employees; (ii) issuance and re-issuance of work permits; (iii) certification that foreign Employees working in Vietnam fall out the category of work permit issuance via electronic networks. Although this circular took effect on 02/10/2017, the authorities in…

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Question 158: Are foreign Employees paid for overtime if they work on their own New Year’s Day and National Day?

Article 115.2 of the Law on Labour stipulates that foreign Employees working in Vietnam will enjoy a maximum of 12 days of public and New Year holidays, including 10 days of Vietnam’s public and Tet holidays, 01 traditional Tet holiday and 01 National Day of their own country. The Ministry of Labour, War Invalids and…

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Question 155: Do foreign Employees under hospital treatment affect termination of LCs due to their expiry?

LCs will be terminated due to their expiry except for the case of Employees as part-time trade union officials still serving their trade union tenure. In such case, signed LCs must be extended until end of their tenure[1]. However foreign Employees who are not entitled to join Vietnamese trade unions will not fall into this…

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Question 154: Will it be deemed as a guarantee for foreign Employees to continue their temporary residence in Vietnam upon expiry of their LCs?

Where foreign Employees wish to prolong their residence term in Vietnam, they shall request the guarantee organisation to carry out the legal procedural steps to extend their temporary residence[1]. Accordingly, the immigration department will consider foreign Employees’ request for extension of their temporary residence based on the application file for extension submitted by the guarantee…

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Question 153: Where a foreign Employee is sent to work in Vietnam for one year, receiving salary from his/her parent company abroad, enjoying transport and meal allowances from a Vietnamese company, is he/she subject to PIT in Vietnam?

Pursuant to the PIT law, foreign Employees working in Vietnam for one year will be considered resident individuals because they have resided in Vietnam for 183 days or more calculated according to 12 consecutive months from the first day of their presence in Vietnam[1]. Accordingly, foreign Employees will be required to declare and finalise taxes…

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Question 152: Upon expiry of any work permit, may Employers continue LCs with foreign Employees based on their visas instead of applying for re-issuance of their work permits?

Pursuant to the labour law, Employers and Employees may not continue LCs based on Employees’ visas instead of applying for re-issuance of their work permits. There is a distinction between a work permit and a visa. Accordingly, a visa[1] is the document issued by a competent Vietnamese authority to a foreigner to grant his/her entry…

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Question 151: Are Employers eligible to pay foreign Employees salaries in foreign currency?

Pursuant to labour law, the salary stated in any LC and the salary paid to Employees will be prescribed in Vietnamese dong, except for cases of paying salaries or salary allowances to non-residents and residents as foreigners in accordance with the law on foreign exchange[1]. In addition, the law on foreign exchange stipulates that residents…

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