What the investor needs to understand
- Employment set-up is needed before the first employee starts, not after go-live. Foreign nationals must hold a work permit or a confirmed exemption, and the right visa or residence card, before working.
Key items
| Topic | What the investor needs to know | When it matters | Authority |
|---|---|---|---|
| Legal representative | At least one legal representative must reside in Vietnam; absences need written authorisation | ERC and ongoing | Business Registration Office |
| Labour contracts | Written contracts in permitted types; probation limits; Vietnamese-language version advisable | Before first hire | Confirm with counsel |
| Initial labour declaration; internal labour rules | Declare labour use; register internal labour rules once headcount reaches the threshold | After first hires | Home affairs / labour authority |
| Social, health and unemployment insurance | Employer registration and monthly contributions; foreign employees are covered by compulsory social insurance in defined cases | From first payroll | Vietnam Social Security |
| Trade union contribution | Employer contribution applies whether or not a grassroots union exists (confirm rate with counsel) | From first payroll | Trade union |
| Foreign labour demand / job-position approval | Employer reports or justifies the need to use foreign workers before applying for work permits | Before work permit | Provincial home affairs authority |
| Work permit | For managers, executives, experts and technical workers meeting qualification and experience tests; legalised degrees, experience letters, police clearance, health check | Before starting work | As above |
| Work permit exemption | Available in listed cases (for example certain owners / capital contributors above a threshold, intra-corporate transferees in committed service sectors): confirmation usually still required | Before starting work | As above |
| Visa and temporary residence card | Visa category must match the purpose (investor / work). Residence card term follows the work permit or investor category | Entry and stay | Immigration Department (Ministry of Public Security) |
| Personal income tax for expatriates | Tax residence test; worldwide income for residents; employer withholding | From arrival | Tax authority |
Common pitfalls
- Foreign director starts work on a business visa.
- Degrees and experience letters not legalised in time.
- No internal labour rules → cannot lawfully discipline or dismiss.
- Late social-insurance registration.
Legal status reviewed as of 18 September 2026. Confirm current rules with counsel before acting.