New decree amends work permit process, requirements

IMPACT – MEDIUM

What is the change? Vietnam’s Ministry of Labour issued a decree last month, introducing a number of changes.

What does the change mean? The decree introduces changes that affect work permit applications, including the removal of the work permit cancellation process and a decrease to processing times.

• Implementation time frame: Oct. 8.
• Visas/permits affected: Work permit applications and cancellations.
• Who is affected: Foreign nationals applying for work permits; Employers cancelling work permits.
• Impact on processing: Processing times have been reduced from seven working days to five working days. It remains to be seen if the change is reflected in practice.

Additional information: The new decree introduces changes and additions to Decree 11/2016/NĐ-CP. Key changes include:

• Work permit application requirements. Only a normal copy of a passport is required. Previously, a notarized or certified copy was required for work permit applications. However, the Ho Chi Minh City labor department is still requiring a notarized copy at this time.
• Work permit cancellation process removed. The annulment of Article 17 of Decree No. 11 effectively removed the need to complete the work permit cancellation process and the HCMC and Hanoi labor departments have stopped accepting work permit cancellations. The change, however, may be temporary and work permit cancellations may again be required and accepted.
• Processing times decrease. From application submission to work permit issuance, processing has been reduced from seven working days to five.
• Clarifications. The decree clarified that the person who is responsible for establishing the commercial presence of an entity in Vietnam is exempt from the work permit requirement.

Analysis & Comments: Some of the changes made by the decree alleviate work permit requirements for applicants and processes for employers. It remains to be seen, however, how the announced changes affect processing in practice as different provinces may transition in the changes at different times and in different phases.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.