DECREE NO. 371/2026/NĐ-CP ON THE RECRUITMENT OF VIETNAMESE EMPLOYEES BY FOREIGN ORGANIZATIONS AND INDIVIDUALS

On September 25, 2026, the Government issued Decree No. 371/2026/NĐ-CP providing detailed regulations on the recruitment and management of Vietnamese employees working for foreign organizations and individuals in Vietnam.

Accordingly, when seeking to recruit Vietnamese employees, foreign organizations and individuals must notify the competent managing authority or organization in writing, specifying the positions and number of employees required. They must also publicly announce recruitment information on the National Employment Service Portal or through other lawful channels. Recruitment may be conducted directly by the foreign organization or individual, or they may request assistance from the competent authority in selecting and recommending candidates.

Staffing service enterprises must submit a list of employees assigned under labor subleasing arrangements within 10 working days from the date the labor subleasing arrangement is implemented. They must also submit an annual report on labor subleasing activities before December 15, using the prescribed forms under the Decree.

DECREE NO. 393/2026/ND-CP ON FOREIGN WORKERS WORKING IN VIETNAM

On October 20, 2026, the Government issued Decree No. 393/2026/ND-CP on foreign workers working in Vietnam.

The Decree sets out the conditions, sequence, and procedures for the issuance, re-issuance, extension, and revocation of work permits, as well as certificates confirming exemption from work permit requirements for foreign workers working in Vietnam, in accordance with the Labor Code.

Talentnet would like to summarize several key provisions relevant to Human Resources and Payroll as follows:

1. Key Provisions

• Work permit procedures: Regulations on the issuance, re-issuance, extension, and revocation of work permits.
• Confirmation of work permit exemption: Procedures for issuing certificates confirming that foreign workers are not subject to work permit requirements.
• Competent authorities: The authority responsible for handling applications is determined based on the workplace, the employer’s head office, and applicable delegation or authorization arrangements.

2. Scope of Application

• Foreign workers: Foreign nationals working in Vietnam under one of the following arrangements:
  • Working under a labor contract.
  • Intra-corporate transferees.
  • Working under contracts or agreements relating to economic or social activities between foreign and Vietnamese agencies, organizations, or enterprises.
  • Service providers under contracts or persons entering Vietnam to offer services.
  • Volunteers.
  • Persons responsible for establishing a commercial presence.
  • Persons transferred from foreign agencies, organizations, or enterprises to Vietnam, excluding intra-corporate transferees.
  • Persons participating in the implementation of bidding packages or projects in Vietnam.
  • Family members of members of foreign representative offices in Vietnam who are permitted to work in Vietnam under applicable international treaties to which the Socialist Republic of Vietnam is a party.
  • Chairpersons or members of the Board of Directors of joint-stock companies, and owners or members of limited liability companies, whose capital contributions are valued at less than VND 3 billion.
  • Persons working under labor contracts with foreign diplomatic missions or foreign organizations in Vietnam.
  • Persons falling under the categories exempt from work permit requirements as specified in Article 8 of the Decree.
• Employers of foreign workers: These include agencies, organizations, enterprises, contractors, foreign diplomatic missions in Vietnam, individuals legally authorized to conduct business, and other relevant organizations and individuals.

3. Work Permit Validity Period: The validity period of a work permit is determined based on one of the grounds specified in the Decree and must not exceed two years. The relevant grounds may include:

• The term of the proposed labor contract.
• The document assigning or transferring the foreign worker to Vietnam.
• Contracts or agreements between the relevant parties.
• The operating license of an organization or enterprise, or an approval document issued by a competent authority.

4. Key Considerations for Employers

• Determining the applicable procedures:
  • Employers should distinguish between procedures for the initial issuance, re-issuance, extension, and revocation of work permits, as each procedure has its own conditions and documentation requirements. The full text of the Decree and its accompanying forms should be reviewed to determine the exact application requirements, processing timelines, and receiving authority.
  • Employers should identify the competent authority responsible for receiving and processing applications based on the workplace or the employer’s head office, as applicable.
• Foreign-issued documents: Employers should review requirements for consular legalization, translation into Vietnamese, and certification, while taking into account any applicable exemptions.

OFFICIAL LETTER NO. 7873/BCT-KHTC ON THE IDENTIFICATION OF FOREIGN EMPLOYEES INTRA-CORPORATE TRANSFEREES WITHIN THE SCOPE OF THE ELEVEN SERVICE SECTORS UNDER VIETNAM’S SPECIFIC COMMITMENTS ON SERVICES TO THE WORLD TRADE ORGANIZATION (WTO)

On September 30, 2026, the Ministry of Industry and Trade issued Official Letter No. 7873/BCT-KHTC regarding the identification of foreign employees transferred within an enterprise in the eleven service sectors covered by Vietnam’s Specific Commitments on Services to the World Trade Organization (WTO).

Talentnet would like to summarize several provisions relevant to Human Resources and payroll management as follows:

1. Four job positions for foreign employees

• Manager: A person who manages an enterprise or serves as the head or deputy head of an agency or organization.
• Executive: The head of a branch, representative office, or business location, or a person directly responsible for managing a business area with at least three years of relevant experience.
• Expert: Generally, a person holding a university degree or higher and having at least two years of relevant experience. Certain priority sectors may apply a requirement of at least one year of experience together with relevant specialized qualifications.
• Technical worker: A person who has received at least one year of training and has at least two years of relevant experience or has at least three years of relevant experience.

2. Conditions for intra-corporate transfers: Under Point b, Clause 13, Article 7, the main conditions for an intra-corporate transfer include:

• The foreign enterprise has established a commercial presence in Vietnam.
• Business activities of company fall within the eleven service sectors covered by Vietnam’s WTO commitments, including: Business Services; Communication Services; Construction Services; Distribution Services; Educational Services; Environmental Services; Financial Services; Health and Social Services; Tourism Services; Recreational, Cultural and Sporting Services; and Transport Services.
• The foreign employee has been employed by the overseas enterprise for at least 12 consecutive months before the transfer.

A commercial presence may take the form of a foreign-invested economic organization, representative office, branch, or operating office of a foreign investor under a business cooperation contract.

3. WTO commitments apply to only three categories of employees: According to the contents of the official letter provided, Vietnam’s WTO commitments on intra-corporate transfers apply only to the following three categories: Managers; Executives; and Experts.

Technical workers are not included in these committed categories. Therefore, enterprises should exercise caution when considering an exemption from work permit requirements for technical workers transferred within the same enterprise and should seek confirmation from the competent local authorities.

Talentnet recommends that enterprises compare their actual business activities against the sectoral classification list in the Appendix and verify the foreign employees’ job positions, qualifications, relevant experience, and employment history.

Meeting the requirements concerning the service sector and at least 12 months of prior employment does not automatically entitle a foreign employee to a work permit exemption. In particular, for technical workers, enterprises should verify the applicable legal grounds and consult the competent authorities before proceeding with the relevant procedures.

NOTICE NO. 8362/TB-BHXH ON THE RECEIPT AND USE OF ELECTRONIC SOCIAL INSURANCE (SI) BOOKS

On October 05, 2026, Ho Chi Minh City Social Security issued Notice No. 8362/TB-BHXH regarding the receipt and use of electronic social insurance (SI) books.

Accordingly, employers are required to guide participants on installing and using Level 2 VNeID and the VssID application, as well as ensure that accurate personal email addresses are provided for receiving electronic SI books. Electronic SI books have the same legal validity as paper SI books and may be used for administrative transactions and the settlement of social insurance (SI), health insurance (HI), and unemployment insurance (UI) benefits. Paper SI books will only be issued by the social security authority upon the participant’s request.

Individuals who have been issued electronic SI books are not required to submit paper SI books or paper contribution record sheets when completing relevant procedures. Employees who were participating in SI or had preserved their SI contribution periods before October 01, 2026, but had not yet been issued electronic SI books, may continue using their paper SI books.

Employers are responsible for ensuring the accuracy of the email addresses provided to protect employees’ entitlements and safeguard personal data.

NOTICE NO. 11483/TB-BNV ON THE 2027 PUBLIC HOLIDAY AND LUNAR NEW YEAR HOLIDAY SCHEDULE

On October 09, 2026, the Ministry of Home Affairs issued Notice No. 11483/TB-BNV regarding the Lunar New Year and National Day holiday schedules in 2027 for civil servants, public employees, and employees.

Accordingly, the Minister of Home Affairs announced the following holiday arrangements for administrative agencies, public service units, political organizations, socio-political organizations, enterprises, and other employers:

1. Lunar New Year Holiday 2027

• Officers and public employees: Seven consecutive days off, from February 04 to February 10, 2027 (from the 28th day of the last lunar month of the Year of the Horse to the fifth day of the first lunar month of the Year of the Goat), comprising five statutory Lunar New Year holidays and two compensatory days off.
• Employees working for enterprises: Employers may choose one of the following three options:
  • One day off at the end of the Year of the Horse and four days off at the beginning of the Year of the Goat.
  • Two days off at the end of the Year of the Horse and three days off at the beginning of the Year of the Goat.
  • Three days off at the end of the Year of the Horse and two days off at the beginning of the Year of the Goat.

2. National Day Holiday 2027 (September 02, 2027)

• Officers and public employees: Four consecutive days off, from September 02 to September 05, 2027, comprising two statutory National Day holidays and two regular weekly days off.
• Employees working for enterprises: Two days off, including September 02, 2027, and either September 01 or September 03, 2027, as decided by the employer.

3. Notes for Enterprises

• Employers must notify employees of the selected Lunar New Year and National Day holiday arrangements at least 30 days in advance.
• If a regular weekly day off coincides with a statutory public holiday, employees are entitled to a compensatory day off on the next working day, in accordance with applicable regulations.
• Employers are encouraged to adopt the same holiday schedule as civil servants and public employees or agree on more favorable arrangements for employees.

GUIDANCE NO. 16/HD-TLĐ ON THE ADMISSION AND MANAGEMENT OF TRADE UNION MEMBERS WHO ARE FOREIGN EMPLOYEES WORKING IN VIETNAM

On September 25, 2026, the Vietnam General Confederation of Labour issued Guidance No. 16/HD-TLĐ on the admission and management of trade union members who are foreign employees working in Vietnam.

Talentnet would like to summarize several provisions relevant to Human Resources and payroll management as follows:

1. General principles

• Trade union membership is entirely voluntary. Applicants must agree to the Charter of the Vietnam Trade Union and be treated equally, without discrimination based on nationality.
• Only individuals who meet the prescribed eligibility requirements may be admitted. Each trade union member may belong to only one grassroots trade union.
• Members must comply with Vietnamese law and the Charter of the Vietnam Trade Union, while ensuring security, public order, and compliance with foreign affairs requirements.
• Privacy and personal data must be respected and protected. Individuals must not independently verify or make conclusions regarding personal background, security matters, or internal political affairs.

2. Eligibility for admission: Foreign employees legally working at enterprises or organizations with a trade union in Vietnam must satisfy the following conditions:

• Hold an employment contract that remains valid for at least 12 months.
• Participate in social insurance in Vietnam in accordance with applicable regulations.
• Voluntarily submit an application for trade union membership and agree to the Charter of the Vietnam Trade Union.
• Comply with the Constitution and laws of Vietnam.
• Not fall within any of the exclusion categories specified in the Guidance.

3. Cases ineligible for admission

• Managers of non-state enterprises or foreign-invested enterprises, including employers and individuals, are authorized to make decisions on matters such as recruitment, contract termination, disciplinary action, wages, or working conditions.
• Individuals who use forged documents or intentionally provide false information.
• Individuals for whom a competent authority has issued a conclusion or decision determining that their membership is intended to exploit trade union activities to violate the law, infringe upon legitimate rights and interests, or obstruct trade union activities.
• Foreign employees whose work permits, or temporary residence cards are under consideration for revocation by the competent state management authority.

PERSONAL INCOME TAX (PIT) GUIDANCE

1. DEPENDENT REGISTRATION – OTHER ELIGIBLE DEPENDENTS

Regarding dependent registration, Official Letter No. 13751/TPHCM-QLDN3 (dated September 25, 2026) issued by the Ho Chi Minh City Tax Department provides guidance on claiming personal income tax deductions for dependents who have no one to rely on (other eligible dependents).

Accordingly, employees who wish to claim a personal income tax deduction for an aunt or uncle who is beyond working age and is being supported by the employee, but still has living parents, children, siblings, must satisfy the conditions prescribed in Articles 47 and 48 of Government Decree No. 253/2026/NĐ-CP, Article 3 of Circular No. 87/2026/TT-BTC issued by the Ministry of Finance, and submit sufficient supporting documents to establish dependent status in accordance with Clause 4, Article 4 of Circular No. 87/2026/TT-BTC.

Regarding the requirement to provide documents proving that the taxpayer is legally obligated to support the dependent, the employee must submit evidence showing that the dependent’s parents, children, and siblings are still alive but are unable to fulfill their support obligations. If the aunt or uncle does not qualify as a person without anyone to rely on, the employee is not eligible to claim a personal income tax deduction for that dependent.

Other eligible dependents registered before July 1, 2026: Those who have already been registered and meet the applicable eligibility requirements are not required to register again.

2. PAYMENTS MADE AFTER TERMINATION OF EMPLOYMENT

Official Letter No. 13510/TTPHCM-QLDN3 dated September 21, 2026, issued by the Ho Chi Minh City Tax Department, and Official Letter No. 2856/CST-TN dated September 18, 2026, issued by the Department of Tax, Fee and Charge Policy Management and Supervision under the Ministry of Finance, clarify the 10% personal income tax withholding requirement applicable to salary, wages, and other income paid to employees after the termination of their employment contracts.

Accordingly, where an enterprise pays salary, wages, or other income to an individual after the termination of their employment contract, with a payment amount of VND 5 million or more per payment, the enterprise must withhold personal income tax at the rate of 10% on the taxable income before making the payment. The income subject to withholding is the amount paid to the individual, excluding income that is not subject to tax and income exempt from tax under applicable regulations.

Where an enterprise only pays compensation for unused annual leave or a bonus after the termination of an employment contract, the payment may be exempt from personal income tax if it satisfies the conditions under Clause 3, Article 113 of the Labor Code. However, any payment for unused annual leave exceeding the statutory entitlement is included in taxable income to the extent of the excess.

Sincerely,
Talentnet Corporation.