Employment Contract Compliance in Vietnam: 7 Issues for Employers

Employment contract compliance in Vietnam means keeping the signed agreement consistent with the work an employee actually does. Employers need the correct agreement before work begins, lawful terms during employment, and records showing what both sides accepted. A contract that was complete at hiring can become unreliable after a change in salary, duties or workplace.

Vietnam’s labor law includes mandatory employee protections that may differ from the rules familiar to overseas managers. Before making an employment decision, business owners, country managers and HR teams should share a clear understanding of the employee’s agreed terms and the legal requirements. A missing signature or an informal pay promise can affect a renewal, transfer or salary claim. Checking the records early gives the company time to address gaps and explain the position clearly to the employee.

These contract issues sit within the wider framework of employment law in Vietnam. This article focuses on seven key requirements for an employment contract in Vietnam under the Labor Code. Foreign employees also need a separate review of work-permit or exemption requirements, visa or residence status, and the terms of their assignment.

Quick Reference

When reviewing employment contract compliance in Vietnam, start with employees whose records could affect an immediate employment decision:

• Employees working without the required signed agreement or with unclear signing authority.
• Employees nearing the end of probation or a fixed term, including those whose earlier renewals affect the next contract.
• Employees whose actual pay, duties or workplace differ from the signed terms.
• Employees who lack a completed copy, or whose electronic signing and delivery records cannot be retrieved.

Clarify the employment history and address any outstanding entitlements before treating a gap as resolved.

7 Issues for Employers

Missing Signed Contracts and Unclear Employment Status

Employers generally must conclude an employment contract before an employee starts work. A lawful separate probation arrangement is one permitted way to begin an agreed trial. Allowing someone to start ordinary employment while waiting for head-office approval can leave the company without the required agreement.

Written contracts are the normal rule, and a compliant electronic contract can have the same legal value. Oral agreements are allowed only within a narrow exception for very short contracts, and some cases still require writing. Check whether the exception applies before relying on it; short duration alone is not a sufficient reason to skip the document.

The contract label also needs attention. An agreement called consulting or services may still be an employment contract when it provides paid work under another party’s management, direction or supervision. Review the actual arrangement before deciding which documents and obligations apply.

Where someone has already worked without a signed contract, establish the actual start date, agreed pay, work performed and benefits due. Payroll, recruitment correspondence and work instructions may help explain the relationship. Confirm which entity employed the person and whether the proposed signer has authority before preparing corrective documents.

A regional manager’s title does not automatically authorize that person to sign for the Vietnamese company. Checking signing authority is a basic contract control; keep the relevant authorization with the employment contract. Where signing was late, record the true signing date and deal expressly with the earlier period. Do not ask either side to certify that a signature occurred on a date when it did not.

HR should compare the active worker list with the contract register and payroll. Each unmatched person needs an explanation, a responsible person and a deadline for correction. Signing now may address an ongoing gap, but earlier liabilities still need separate review.

Probation Arrangements That Fit the Actual Job

Probation is optional and must be agreed. The parties may include it in the employment contract or sign a separate probation contract. They should choose the arrangement before the trial begins, including the job, pay, assessment criteria and person responsible for communicating the result. Recruitment files and assessment notes also form part of the employer’s Vietnam data compliance review: decide who needs access, how the records will be used and how long they should be kept.

Probation cannot be repeated for the same job, and it is not permitted for certain very short employment contracts. The maximum probation period depends on the position and its required qualifications. HR should confirm the applicable limit before agreeing the start and end dates.

The longer probation period for statutory enterprise-manager positions does not cover every employee whose title contains “manager.” HR needs to confirm that the position falls within that legal category. For other roles, use the qualification requirements of the job when selecting the permitted period.

The agreed probation pay must meet the legal minimum linked to the salary for that job. At the end of probation, the employer must notify the employee of the result. If the employee passes, the existing employment contract continues where probation was included in it. Where there was a separate probation contract, the parties must conclude an employment contract.

During lawful probation, either party may cancel the probation contract or the employment contract containing probation without advance notice or compensation. Earned pay remains due. Managers should decide and communicate within the agreed lawful period. An internal delay does not automatically extend probation, and the company should not assume that probationary cancellation rights remain available after it ends.

Contract Duration and Renewals Before the Expiry Date

The Labor Code recognizes indefinite-term contracts and fixed-term contracts. An indefinite-term contract has no agreed expiry date. A fixed-term contract has an agreed expiry date and must stay within the statutory maximum duration. A project label does not create a separate contract category outside these rules.

If an employee continues working after a fixed-term contract expires, the parties must sign a new contract within the statutory period. Until then, the previous contract governs their rights and obligations. Missing that deadline generally causes the contract to become indefinite-term. HR should make the renewal decision before expiry rather than treat the post-expiry period as its normal timetable.

Fixed-term renewals are limited. Once the ordinary renewal limit is reached, continued employment requires an indefinite-term contract, unless a statutory exception applies. Review the full sequence of agreements before approving another term. A newly printed contract does not restart the employee’s history.

There are statutory exceptions, including rules for foreign employees, elderly employees and certain other positions. Foreign employees may agree successive fixed terms. Where a work permit is required, the employment contract must not exceed its validity. For exempt employees, also check the exemption basis and the validity of any exemption confirmation against the proposed period of work. HR should check the employee’s category before applying the ordinary renewal rule.

An appendix cannot amend the duration of an employment contract. This matters when a manager asks HR to extend the term using a short attachment. An appendix may record other agreed changes, but the renewal requires the appropriate new contract and a check of the permitted contract type.

An expiry calendar should therefore record earlier contracts, the permitted next term and the manager’s decision. A fixed end date also does not give the employer a general right to terminate early when sales fall or a project changes. Any early exit needs its own lawful basis and should be considered within the wider employment termination and restructuring framework.

Required Terms and Documents That Match Up

The contract must identify the employer, its address and the name and position of the employer’s signer. It must also include the employee’s required identity and residence details. The company name should match the actual employing entity, even where a group brand appears on recruitment materials.

For an ordinary employment contract, the required substantive content covers the job and workplace, contract duration, and salary for the job or title. It also includes the payment method and timing, salary allowances and other additional payments, and arrangements for wage or grade increases.

Other required subjects include working time and rest, protective equipment, social insurance, health insurance, unemployment insurance, and training or development of vocational skills. State the applicable arrangements clearly. The insurance categories named in the contract must be implemented according to the employee’s actual statutory coverage.

Employment contract compliance in Vietnam also depends on how these terms work together. Compare the contract with the offer, job description, pay schedule and relevant policies. An annual salary review should not be described as a guaranteed increase if that is not the agreement. A mandatory benefit cannot be removed by calling it discretionary.

Attachments need identifiable versions and effective dates. A reference to “company policies from time to time” does not give management unlimited power to reduce agreed rights. Where a policy supplies relevant detail, employees should be able to access and understand it.

Bilingual documents can help employees and overseas managers work from the same terms. Check names, figures and obligations across both versions, and explain how differences will be handled. A language-priority clause cannot override mandatory Vietnamese protections. Avoid importing a global right to dismiss at will or a blanket employee waiver into the local contract.

For roles involving software, designs or technical information, check ownership and permitted use of the work produced. Confidentiality terms should identify the information to protect and the employee’s responsibilities. Clear ownership records and access controls help protect intellectual property in Vietnam, including work created by employees. A general confidentiality clause does not settle every ownership question or give the company rights over an employee’s unrelated work.

Salary and Allowances That Payroll Can Apply Correctly

The contract should let the employee and payroll team understand what is payable, when it is payable and how it is calculated. Separate the salary for the job from salary allowances, other additional payments, expense reimbursements and bonuses. Explain any conditions attached to a payment.

The salary for the job or title must meet the applicable minimum wage. Adding allowances to an inadequate job salary does not remove that requirement. Employers should check the current regional rate when hiring, changing the workplace or revising pay.

State whether an agreed amount is gross pay before lawful deductions or a promised net amount. If the company promises net pay, finance needs to understand the additional employer cost. Salary must generally be stated and paid in Vietnamese dong. For foreign employees in Vietnam, it may be stated and paid in foreign currency, subject also to applicable foreign-exchange rules.

A fixed monthly housing payment promised in the offer should not become discretionary simply because the contract uses a broad allowance clause. Identify which payments are guaranteed and which depend on stated conditions. Resolve inconsistent wording before payroll applies it; the name given to a payment does not decide the employee’s entitlement.

The same care applies to bonuses. A guaranteed contractual payment and an award dependent on stated business or performance conditions can create different obligations. Record the intended arrangement clearly and use consistent wording in recruitment emails, contracts and bonus policies.

For employees whose wages are set by the employer, salary allowances and other fixed additional payments agreed to be paid regularly and consistently each pay period are generally included in the compulsory social insurance contribution base. Calling a payment an allowance does not decide its treatment. Payroll should check the nature and conditions of each component, including any statutory exclusions, and apply the relevant rules for each insurance scheme.

Employers must pay fully and on time and provide a pay statement showing salary, overtime, night work and deductions where applicable. Trace the agreed package through the payslip to the payment record. If the figures differ, establish whether the cause is a calculation error, an agreed change or an unpaid entitlement. Keep the agreed terms, payslips and payment confirmations together so the evidence of what was agreed and paid can be checked if a dispute arises.

Changes to Jobs or Workplaces After Hiring

The employee’s work and workplace should follow the contract. Routine assignments within the agreed role differ from a material change to the job or normal location. Before announcing a transfer, management should establish whether the existing agreement already covers it or whether employee agreement is required.

A party proposing changes to contract terms must give the other party the required advance notice describing those changes. If both sides agree, they can sign an appendix or a new contract, subject to the separate restriction on changing duration by appendix. If they do not agree, the existing contract continues.

An email announcing a new position is therefore not necessarily an agreed amendment. Record the accepted duties, workplace, pay and effective date before implementing a permanent change. A broad instruction to perform any work anywhere should not be treated as unlimited consent.

Temporary reassignment to different work has a separate legal route. It can apply to specified unexpected difficulties or production and business needs. Where the employer relies on production or business needs, the relevant circumstances must be specified in its internal labor regulations. The company must also meet the notice, duration and pay conditions below.

The employer must give the legally required advance notice, state how long the reassignment will last and assign work suitable for the employee’s health and gender. HR should track the cumulative period of reassignment during the year and obtain the employee’s written agreement before the statutory limit is exceeded. These rules concern temporary different work; they are not general permission for a permanent relocation.

The employee receives the pay for the new work. If it is lower, the previous salary must be preserved for the initial period required by law. After that, any reduced salary must meet both the legal floor linked to the previous salary and the applicable minimum wage. Payroll should confirm these protections before applying a reduction.

Before moving a team, HR should distinguish a permanent amendment from a lawful temporary reassignment and check the consequences for each employee. If the move involves a new office or factory, coordinate the employment changes with the company’s location and relocation planning in Vietnam, including the premises and any related registration or licensing changes. Foreign employees also need a separate review of their work authorization. A signed employment amendment does not itself update a permit or complete any required notification.

Signed Copies and Electronic Records That Remain Available

For a written paper contract, the employer and employee must each retain a signed copy. HR should confirm delivery of the completed version and all agreed attachments. Sending a draft before signature does not show that the employee received the final agreement.

A scan makes a paper contract easier to retrieve, but scanning alone does not convert it into a compliant electronic employment contract. Keep paper originals where the agreement was completed on paper. If the company wants an electronic original, use a process that meets the applicable rules on identity, signing, integrity and access.

If the company uses electronic contracts, confirm that its signing and recordkeeping process meets the rules applicable to the signing date and provider, including any transitional arrangements. Keep evidence of how the agreement was signed and delivered.

Give the employee the completed electronic contract through the agreed method. HR should be able to retrieve the signed file, attachments and amendments, even after the employee leaves or the company changes providers.

Employment contract compliance in Vietnam requires a clear history of the agreement. Preserve earlier versions and show which amendment changed each term. These records may also provide evidence for contract disputes in Vietnam if the terms become contested. Employment disputes follow their own legal procedures, which must be checked separately from the rules for commercial disputes.

Employee files contain personal information, so Vietnam data compliance also matters when storing or sharing them. Limit access to staff who need it, set appropriate retention periods and preserve records required for an ongoing dispute. Before sharing files with an overseas parent or HR platform, check the purpose, recipients and applicable requirements. Signing an employment contract does not give the employer unrestricted permission to use or share personal data.

Step by Step Guide to Employment Contract Compliance in Vietnam

Step 1: Establish the complete employee list

Compare payroll, HR and department lists. Record the employing entity, actual start date, role, workplace and whether a signed agreement exists. Ask managers about people working outside the normal onboarding process. The result should be one reconciled list with each missing file identified.

Step 2: Reconstruct the agreement and its history

Collect the signed contract, probation terms, earlier fixed terms, amendments, offer and relevant policies. Check signing authority and the dates of changes. Preserve recruitment and management messages that explain a disputed term. Separate an original record from a later explanation of what happened.

Step 3: Check current terms and approaching deadlines

Apply the seven issues above to the employee’s actual position. Confirm whether probation has ended, whether the next fixed term is permitted, and whether pay or work has changed. Check the current legal limits and notice periods, then record the exact dates that apply. Give priority to an imminent expiry, an ongoing underpayment or a proposed transfer.

Step 4: Agree and document the correction

Explain the discrepancy to the employee and identify the lawful correction. Obtain agreement where required, use a new contract for a permitted renewal, and record true signing dates. Calculate any unpaid amounts separately. A replacement document should not describe a disputed history as agreed or remove mandatory rights.

Step 5: Put the agreed terms into operation

Give the employee the completed documents. Send authorized pay and role changes to payroll and the relevant manager, with their effective dates. For electronic records, keep the signing and delivery evidence and confirm any transitional treatment. Close the task only after the correction is reflected in both the documents and actual practice.

Step 6: Keep the next review visible

Update the contract register with the current version, probation end, expiry date and next action. Assign a person to each deadline and test a sample of completed files. Repeat the review when pay, duties, workplace or the employing entity changes. Unresolved questions affecting termination or a significant entitlement need review before management acts.

Frequently Asked Questions About Employment Contract Compliance in Vietnam

Q1: Can an employee start while head office is still approving the contract?

The employer generally must conclude the employment contract before ordinary employment starts. An agreed, lawful separate probation arrangement is possible. An unsigned draft or pending internal approval is not a reliable substitute. Plan the local signing authority and required documents before setting the start date.

Q2: Does a missing signature mean the person has no employment rights?

No. Paid work under the employer’s management, direction or supervision can establish an employment relationship despite the document’s label or a missing contract. Review the facts and existing entitlements. Preparing a contract later does not automatically settle liability for the earlier period.

Q3: Can probation be extended because the manager needs more time?

A manager’s preference cannot override the agreed arrangement or statutory maximum. Probation cannot be repeated for the same job. Assess the result within the lawful period and notify the employee. Do not assume that an expired probation arrangement continues because no decision was communicated.

Q4: Can a fixed-term contract be renewed through an appendix?

No. An appendix cannot change the contract’s duration. Use the appropriate new contract and check the employee’s earlier terms. The renewal history determines whether another fixed term is permitted or continued employment requires an indefinite-term contract, subject to statutory exceptions.

Q5: Can the company stop an allowance when business slows?

That depends on the agreed payment and its lawful conditions. A guaranteed contractual payment cannot be treated as optional merely because it is called an allowance. Review the offer, contract, policy and actual payments, then use the proper agreement process for any proposed change.

Q6: Can a transfer clause let the employer move an employee anywhere?

Its wording and the proposed move both matter. Check whether the agreed job and workplace cover the change. A permanent amendment may require agreement; temporary different work has separate conditions and limits. Foreign-worker authorization must also be checked independently of the employment clause.

Q7: Must every paper employment contract be replaced electronically?

No. Paper contracts remain a permitted form. Keep the signed originals and give the employee the completed copy. If electronic contracting is chosen, verify the rules applicable to the provider and signing date, including any transitional treatment. A scan is useful for access but does not itself complete the electronic contracting process.

Q8: Does an employee’s signature make every contract clause enforceable?

No. Agreement does not remove mandatory employee protections. A clause allowing dismissal at will, withholding a statutory entitlement or making unrestricted use of personal data may conflict with applicable law. Review the particular term and the action proposed instead of relying on the signature alone.

Conclusion

Employment contract compliance in Vietnam needs attention when someone joins, when probation ends, before a contract expires and whenever work or pay changes. HR should maintain the agreement and its history, managers should explain proposed changes, and payroll should check that payments follow the applicable terms.

Start with the unresolved issue most likely to affect an employee’s rights or the company’s next decision. Confirm the facts, agree the appropriate correction and keep evidence that it was completed. A reliable contract file helps both sides understand what has been agreed and reduces avoidable disagreement later.

General Disclaimer

This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.

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Decree 393/2026/ND-CP on Foreign Workers in Vietnam: 7 Issues for Employers and Employees

When a company hires a foreign employee or moves a specialist into Vietnam, it must comply with the applicable rules and prepare documents that match the job, employing entity and assignment. Decree 393/2026/ND-CP on Foreign Workers in Vietnam changes several of these requirements, including who qualifies, when an exemption applies and how an existing permission is maintained.

The decree simplifies some procedures while tightening particular employment arrangements and documentation requirements. Employers and employees need to consider both when planning a hire or assignment. 

Issued on October 20, 2026, the decree takes effect on December 5, 2026. The discussion below explains the framework applicable from that date, including the protection for existing documents and pending applications. Its continuing importance is how employers and employees plan recruitment, assignments and continued employment. 

Why Vietnam Introduced Decree 393

Decree 393 revises the framework for identifying eligible foreign workers and administering their work permissions. It adds qualification alternatives, revises exemptions for specialist work and education, and changes procedures for extensions and workplace changes. It also provides for greater use of information already held in government databases.

These provisions affect the evidence needed for a particular job and the procedure the employer must follow. Employers should distinguish a changed requirement from an existing obligation before changing their recruitment or assignment policy.

Quick Reference

Decree 393 governs foreign-worker qualifications, work permits and exemptions in Vietnam from December 5, 2026. The correct arrangement depends on the actual job, employer, qualifications and work locations. A short assignment or an overseas salary does not, by itself, establish an exemption. Some exempt workers need an exemption confirmation; specified categories instead follow advance notification procedures.

For employers, the ongoing compliance task is to keep the employment documents and work permission consistent as the assignment develops. Employees should understand which organization and work their permission covers. The revised extension procedures offer earlier filing and shorter processing, but a pending application does not extend an expiring permit. Existing documents and applications submitted before commencement receive specific transitional treatment.

7 Issues for Employers and Employees

Recruiting Under the Revised Qualification Rules

The job title used within a company does not decide whether a foreign employee qualifies as a manager, executive, expert or technical worker. The decree defines these categories and requires evidence supporting the proposed work.

For executives heading and directly managing a field of an organization or enterprise, the relevant experience requirement falls from three years to two. For experts, the general requirement of a university degree and at least two years of relevant experience remains. An additional alternative recognizes at least five years of experience appropriate to the proposed position, without expressly requiring a degree under that alternative.

Separate expert criteria address strategic technologies, specified highly ranked university graduates, education, research, culture and sport. Each has its own conditions. An employee who does not meet one criterion may qualify under another, but a specialist title alone is insufficient.

Both employer and employee should review qualifications and experience before finalizing an offer or assignment. For project teams, work permit planning for foreign engineers should also distinguish work authorization from any professional certificate required for the duties.

Choosing the Appropriate Employment or Assignment Arrangement

A local labor contract, a qualifying transfer within an enterprise and an assignment to perform a service contract require different supporting evidence. The employment contract, overseas assignment letter and application need to describe the same arrangement.

Decree 393 defines an intra-company transferee as a manager, executive or expert temporarily assigned to the foreign enterprise’s commercial presence in Vietnam. The employee must have been employed by the overseas enterprise for at least 12 consecutive months before the transfer. The related exemption remains tied to the 11 service sectors in Vietnam’s World Trade Organization commitments.

Technical workers are no longer included in that definition, although existing documents receive special transitional treatment. The decree also distinguishes other transfers within an overseas organization or corporate group. Being employed by a group company does not automatically establish an exempt intra-company transfer.

Decree 393 also expressly prohibits employers from subleasing foreign workers. This raises a concern for employer-of-record (EOR) arrangements in which a provider employs the person while the client directs and supervises the work. If the arrangement amounts to labor subleasing, it cannot be used for foreign workers under the decree. Payroll administration, recruitment support and genuine outsourced services need separate assessment; the service name alone does not settle the legal position. 

An affected business may need to change the employing structure and coordinate contract, work-permit and immigration steps to avoid interruptions. Where it needs a local presence, the choice of company, representative office or branch must fit the planned activities. An existing work permit does not, by itself, resolve a prohibited subleasing arrangement.

The parties should identify who employs and directs the person, the work to be performed and the supporting assignment documents. These decisions belong within the broader employment arrangements review, before a start date is promised.

Understanding When Short-Term Work Requires a Permit

Decree 393 defines short-term work as no more than 90 days in total during the calendar year, for one or more employers in Vietnam. The category covers managers, executives, experts and technical workers.

The revised wording also adds an important restriction. Where a relationship involving hiring, employment and wage payment arises, the decree requires an application for a work permit under the labor-contract arrangement. Counting days alone therefore does not establish that the person may work without a permit.

Review the substance of the assignment and payment arrangements before relying on the exemption. Where it applies, the employer must give the prescribed notice at least three working days before the expected start. Keep a record of work across employers and visits: changing the host company does not restart the annual allowance.

Identifying the Correct Exemption and Procedure

Decree 393 expands and reorganizes exemptions for education and specialist work. Examples include specified teaching and research activities, qualifying holders of special visa-exemption cards, strategic-technology experts and their qualifying relatives, and personnel attracted under the national artificial-intelligence workforce program.

These categories have distinct conditions and evidence requirements. For example, the education provisions identify particular approved programs, institutional cooperation arrangements and qualification-based teaching or research activities. They do not exempt every foreign employee working at a school.

Eligibility for an exemption and the procedure for using it are separate questions. Depending on the category, an exemption confirmation or advance notification may be required. An employer should establish the precise ground and retain the supporting documents. The employee should understand what has been obtained or notified before beginning the assignment.

The ordinary exemption-confirmation dossier includes criminal-record evidence issued no more than six months before filing, unless the relevant information can be retrieved from the database. Specified simplified applications and notification-only categories follow different requirements. Employers should allow time for overseas records where needed; being exempt from a work permit does not necessarily mean a lighter application. 

Preparing Documents and Using Electronic Records

The decree allows specified information to be retrieved from government databases, including passport details, photographs and existing work-permission records. It also provides for criminal-record information to be used through the relevant database arrangements. These provisions can reduce repeated submissions where the information is available.

Employers should check what the authority can actually retrieve. A document should not be omitted simply because the employee submitted it in an earlier application. Names, passport numbers and employment details need to match. Foreign documents also require the applicable authentication and Vietnamese translation checks.

For an initial permit application, the filing window is no more than 60 days and at least 10 working days before the proposed start. The ordinary processing period remains 10 working days after receipt of a complete application. Where the criminal-record database procedure is used, the period runs from receipt of the retrieved information. Allow additional time for document preparation before promising a start date.

Digital processing also increases the importance of handling employee information carefully. Limit access to passport, health and criminal-record documents, and review sharing with overseas offices or service providers. These are separate data-protection considerations, rather than new duties created solely by Decree 393.

Managing Changes to the Employer Role or Workplace

An existing permit does not cover every later staffing decision. Working for another employer requires a new permit procedure, including where the position and field remain the same. Changes to the position, field or working arrangement with the same employer also require the applicable new-permit procedure.

Decree 393 expressly provides for notice when a permit holder works for the same employer at new locations or changes to a stable, regular workplace. The employer must notify both the authority at the intended workplace and the issuing authority at least three working days before work begins there. The work period cannot exceed the existing permit’s validity.

A separate reissuance provision covers specified changes involving the headquarters, branch, representative office, business location or foreign contractor’s operating office where the worker was authorized. The facts therefore need checking before treating every relocation as notice-only.

Review a promotion, transfer or relocation while it is being planned. Employees should inform the responsible team about proposed changes so the necessary procedure can be completed before the new assignment begins. Check whether the employment documents and  internal labor rules also need updating.

Planning Extensions and Continued Employment

Decree 393 permits extension applications no more than 90 days and at least 10 working days before expiry. The ordinary processing period for a complete permit-extension application falls from 10 working days to five. The extension dossier also omits the health certificate previously required; initial applications still have a health-document requirement, subject to the database exception.

The maximum permit period remains two years, with one extension of up to two years, subject to the relevant conditions and supporting documents. Once that extension has been used, continued employment requires a new permit procedure. The employer and employee should distinguish an extension from a new application when planning the next contract.

The transition does not automatically cancel existing permissions. Covered permits and exemption confirmations issued under the earlier rules continue until expiry, subject to events affecting validity.

Existing intra-company-transfer documents for technical workers also continue until expiry. Their later reissuance or extension is addressed under the expert category where the worker meets the five-year relevant-experience condition. Review these cases individually. A pending application does not authorize work after the current permission expires.

If work permission cannot be renewed, disagreements may arise over whether employment should end and what payments are due. Before communicating a termination decision, the employer should check the legal basis, applicable procedure and payment obligations. Both parties should retain the contract, permit records and renewal correspondence. Clear explanations and payment calculations can help prevent employment termination disputes from escalating.

Frequently Asked Questions

Q1: Does every foreign employee benefit from easier qualification rules

No. Decree 393 adds alternatives and changes particular thresholds, while retaining other conditions. The employee must satisfy the category relevant to the actual job and provide the required evidence.

Q2: Is a visit of 90 days or less automatically exempt

No. The annual day limit is only part of the assessment. The person must fall within the specified categories, and the rule requiring a permit where the relevant employment and wage relationship arises must also be considered.

Q3: Does a visa or residence card replace work permission

An ordinary visa or residence card does not by itself settle work authorization. Decree 393 recognizes a specific exemption for qualifying special visa-exemption card holders, but ordinary immigration permission should not be treated as that special category.

Q4: Must all existing permits be replaced when Decree 393 takes effect

No. The transition preserves covered existing documents until expiry, subject to their continued validity. A later change, reissuance or extension must be assessed under the applicable procedure and any special transitional rule.

Conclusion

Employers and employees should review work permission before agreeing to recruitment, reassignment or continued employment. Check the actual job, qualification evidence, employer and work locations against the existing or proposed permission. Agree who will prepare documents and notifications, and keep the employee informed of the timing. This makes the decree useful in recurring staffing decisions throughout the employment relationship.

General Disclaimer

This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.

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Foreign Engineering Consultants in Vietnam: 7 Licensing Issues for Design and Consulting Services

A foreign design firm can take responsibility for a Vietnam construction project without sending a permanent team to site. The work may involve drawings, surveys, design review, supervision or project management. Foreign engineering consultants in Vietnam should settle the company license, individual qualifications and Vietnamese participation before accepting those responsibilities.

A construction operation license in Vietnam addresses the firm’s right to perform the relevant construction services. Individual qualifications and work authorization need separate review. These seven issues help you align the appointment, technical team and project responsibilities.

Quick Reference

• Design, design review, survey, supervision and project management for a Vietnam project are construction consultancy.
• Working from your home office does not, by itself, remove the license requirement.
• Planning, project preparation, survey and construction design contracts may use an executive office at the project owner’s registered address or no executive office in Vietnam. This is an office rule, not a license exemption.
• Specified design, survey and supervision roles require professional qualification. Apply the foreign-practitioner route and any activity exception before deciding that every individual needs a Vietnamese certificate.
• Plan company licensing alongside the commercial appointment, qualification checks and delivery schedule.

7 Licensing Issues for Design and Consulting Services

Identify What You Will Deliver

The contract title does not decide your legal role. Review the services, deliverables and responsibilities your firm accepts.

The Construction Law treats construction consultancy broadly. It covers project preparation, surveys, construction design, design review, project management and construction supervision. Physical site work is not needed to fall within the law.

Identify which drawings, calculations, survey results, review reports and instructions the project will rely on. If your firm takes responsibility for regulated construction consultancy in Vietnam, assess and obtain the required construction operation license. General market advice and limited engineering inputs can be different arrangements, but the fact that a local designer later signs a document does not prove your firm is outside the framework.

Do Not Assume Offshore Design Is Exempt

Working from abroad does not create an automatic exemption from Vietnamese construction rules. The foreign firm’s contract, responsibilities, deliverables and connection to the project determine the assessment. Distinguish limited advisory inputs from an appointment to deliver or take responsibility for the construction design, and document the basis for the firm’s licensing position.

Specified planning, project-preparation, survey and construction-design contracts allow the foreign contractor to use an executive office at the project owner’s registered address or to operate without an executive office in Vietnam. Check that the actual appointment falls within the relevant category. This office arrangement does not remove the company’s construction operation licensing obligations.

Obtain a design responsibility schedule before the appointment. Identify who issues the drawings, answers review comments, verifies site assumptions and approves changes. If a local firm’s role is limited to translation or administrative submission, do not describe it as taking the foreign firm’s design responsibility.

Separate the Company License From Personal Certificates

The license allows your company to perform the package. It does not qualify your engineers for regulated roles. These are two different checks.

The Construction Law requires practicing certificates for specified roles, including survey leads, design directors and discipline leads, lead design-review roles and construction supervisors. Project management directors and site commanders are assessed under the applicable capacity and experience rules. Check the exact appointment, discipline and project scope rather than treating every job title containing engineer as the same role.

For foreign practitioners, the qualification route can depend on an existing foreign practice license, the place of practice and the length of the appointment. Some eligible individuals can use prescribed foreign qualifications and practice-license documents; others need certificate conversion or another applicable route. Specific activities also have exceptions. Confirm the route and document formalities for each role before the person takes responsibility for technical work.

Prepare a role list with each appointed person, the applicable certificate or other qualification basis and a qualified replacement. Check the permitted discipline and scope, document formalities and any architecture-specific rule. Owner approval of a CV does not replace a required qualification, and a replacement should be reviewed before taking over technical signing.

For supporting engineers, distinguish contribution to the design from holding the formal lead or supervision appointment. Maintain the qualification documents with appointment records and the signing list. If the service period increases or the person begins local practice, review whether the original foreign-practitioner route still applies.

Give Your Vietnamese Partner Real Technical Work

The same rule applies to consultants as to builders. A foreign contractor must form a consortium with a Vietnamese contractor or use a Vietnamese subcontractor, unless no Vietnamese contractor can do any part of the package. The agreement must state the content, quantity and value of the Vietnamese party’s work.

Possible local work includes an allocated survey, design adaptation, technical-regulation review or another part of the consultancy package. Translation or the presence of local staff alone does not establish compliance with the participation rule. Record what the local team will deliver and how that work connects with the foreign firm’s responsibilities.

A partner should not merely stamp drawings. Define who prepares, checks and issues each deliverable, how the firms exchange data and who controls design changes. The arrangement should also address errors at the boundary between the scopes. A signed local participation agreement must reflect work that will actually be performed.

Also check how errors will be corrected and whether the local and foreign firms use compatible notice and dispute provisions. The owner should not have to reconstruct responsibility from two conflicting service descriptions. A clear technical split should carry through the licensing file, contract, drawings and review records.

Align the Appointment With Licensing and Delivery Commitments

A consultant needs a defined scope, fee basis and commercial commitment before allocating a team to a project. Develop the appointment and licensing plan together. Identify who will contract, what evidence confirms the firm’s selection, what the owner must provide and which deliverables carry regulated construction responsibility.

The signing rule must still be addressed: for a regulated construction consultancy contract, the owner or main contractor must have the foreign contractor’s license in place before signing. The application uses lawful selection evidence and other required records. Do not treat a letter of intent or a clause postponing services as a complete answer without checking what commitments the document creates.

Where the appointment is already signed, assess the contract, existing deliverables and licensing position promptly. Agree the next steps with the owner, including any documentation, contractual adjustment or authority clarification needed. Keep regulated performance within the licensing requirements; a signed appointment alone does not authorize the firm to start those services.

Set realistic delivery dates by allocating responsibility for licensing documents, project data and owner approvals. Record when the owner must provide surveys, drawings, design criteria and other inputs. Agree how incomplete information or delayed review affects the consultant’s timetable, fee and obligation to revise the design.

Address these points during the contract review. For wider project interfaces, EPC contract review in Vietnam should connect the consultant’s duties with construction delivery, instruction authority and acceptance responsibilities.

Define what constitutes a completed design submission and what starts the owner’s review period. Record missing information and changed assumptions promptly. This allows the parties to separate a late deliverable from a delay caused by incomplete owner data, and to price additional revisions through the agreed change process.

Control Site Roles and Who Gives Instructions

A design appointment does not necessarily include supervision. Before a design engineer supervises construction, approves site deviations, certifies quantities or signs acceptance records, review the added company scope and any license amendment, the contract and the individual’s qualification basis. Owner consent alone does not confer the required authority.

When a foreign contractor is used for project management or construction quality supervision, the owner, project entity or main contractor must give written notice of its functions and duties to other contractors and the construction quality management authorities. Ask for the notice and ensure it matches the appointment. The notice communicates the role; it does not replace licensing or professional qualifications.

Keep design clarification, a formal design change and a commercial variation distinct. An engineer may explain a drawing without authority to change the contract price or direct another contractor. State who can issue each type of instruction and retain the approved versions and replies.

Engineers working in Vietnam also need the appropriate work authorization or exemption and immigration status. Some eligible short-term workers can use a notice-based exemption, but the role, cumulative working days and advance notice must be checked. Prepare these records before the trip, not after technical instructions have been issued.

Make Your Design Records Usable in Vietnam

The design must meet applicable Vietnamese technical regulations. Standards selected for the project, including foreign standards, require the relevant project acceptance and must be consistent with national technical regulations and related law. They must also be compatible and feasible for the project. An international design standard is not a substitute for this review.

Agree early on document language, format, signatories and version control. Keep records of surveys, calculations, assumptions and approvals. These records show which firm did what if a problem appears later. A translation alone does not move technical responsibility to the translator or the local partner.

Separate correction of your own errors from revisions caused by new owner instructions or changed site information. The contract should define who approves a variation, how the fee and timetable are agreed and what records support the claim. A new instruction does not guarantee additional payment if the agreed process is ignored. Review the professional liability insurance required for the appointment under Vietnamese law.

Before the final deliverable, confirm which editable files, calculations, review responses and approvals must be handed over. Preserve the version history showing what was issued for construction. These records support acceptance and payment, and help distinguish a consultant’s error from a later site or owner change.

Checklist for Foreign Engineering Consultants

• Deliverables: identify their purpose and the firm responsible for the formal project documents.
• Offshore services: distinguish limited inputs from retained construction responsibility; assess the company contract separately.
• Qualifications: record each appointed person’s certificate, foreign-practitioner route, capacity basis or applicable exception.
• Vietnamese participation: agree real technical work and its content, quantity and value.
• Contract and schedule: align selection records, signing requirements, licensing documents and the delivery commitments made to the owner.
• Site roles: retain the required role notice, instruction authority and individual work authorization records.
• Design records: agree regulations and standards, review procedures, language, signatories and version control.

Step by Step Process for Engineering Appointments

Prepare qualification documents and Vietnamese participation early, and agree records and review responsibilities before delivery.

• List each deliverable and state how the project will use it.
• Decide whether your firm is the responsible designer or a supplier of inputs, and where each task is done.
• Name the responsible person and a qualified replacement for each regulated role; confirm the certificate, foreign-practitioner route or applicable exception.
• Choose a Vietnamese partner and define its work, quantity and value.
• Coordinate the commercial appointment and licensing application, check signing requirements, and resolve any existing contractual commitments.
• Confirm site duties, the required written notice, individual qualifications and work authorization before local performance.
• Agree on standards, document language, signers, version control and insurance.

Frequently Asked Questions

Q1: Do foreign design consultants need a construction operation license in Vietnam?

Yes, where the foreign firm undertakes regulated construction consultancy in Vietnam. Design, review, supervision and project management can fall within that framework. Review the contract and actual responsibilities; being called a consultant rather than a builder is not an exemption.

Q2: Is offshore construction design automatically exempt from licensing?

No. Offshore delivery does not establish an exemption when the foreign firm retains regulated construction responsibility. The executive-office option is separate. Limited foreign inputs to another responsible designer still require a project-specific assessment of the foreign firm’s own contract.

Q3: Does every foreign engineer need a practicing certificate?

No. Requirements attach to specified roles and activities. For eligible foreign practitioners, the current rules distinguish the documented foreign-qualification route from certificate conversion and provide activity-specific exceptions. Review those rules before requiring a Vietnamese certificate or treating a person as exempt.

Q4: Can a Vietnamese design company sign the foreign firm’s drawings?

It may issue the project design where it genuinely takes and performs the relevant responsibility and meets the applicable rules. Define review, adaptation and issuance duties. A signature alone does not resolve the foreign firm’s retained obligations or prove a licensing exemption.

Q5: Must every licensed foreign consultant set up an executive office?

No. Specified planning, project preparation, survey and construction design contracts may use an office at the owner’s registered headquarters or no executive office in Vietnam. The stated exception does not extend simply because supervision or project management is described as consulting. Review mixed scopes separately.

Q6: Can a design consultant start supervising when the owner asks?

Not without reviewing the new role. Confirm the company scope and any amendment, the contract, the individual’s professional qualification and work authorization, and the required written notice. Owner instructions alone do not expand a license or settle those requirements.

Conclusion

Before your firm is appointed, link every deliverable to the company responsible for it, the named lead, the license position and how the project will use it. This record helps owners compare options and gives foreign engineering consultants in Vietnam a clear boundary for their work. Update it whenever design support turns into site supervision or project management.

General Disclaimer

This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.

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