Insights | Ascentium Vietnam

Hiring Foreign Employees in Vietnam: A Comprehensive 2026 Guide

Written by Ascentium Content Team | 14 June 2025

Vietnam continues to attract foreign specialists, managers and technical professionals as businesses expand across manufacturing, technology and other growth sectors. The latest official government figure available reports around 161,992 foreign workers from approximately 110 countries and territories, including 12,797 workers exempt from work permit requirements.

For employers, the more important change is regulatory. Since 7 August 2025, Decree 219/2025/NĐ-CP has governed foreign workers in Vietnam, introducing a streamlined work permit process and broader exemption provisions. Under the current rules, authorities generally have 10 working days to decide on a complete work permit application.

This guide explains how to hire foreign employees in Vietnam in 2026, including work permit requirements, exemptions, required documents, application timelines, employment costs and the key compliance steps employers need to manage.

Key Takeaways 

  • Vietnam is increasingly attractive to foreign talent, with faster work permit processing (down to 10 days) and demand highest in tech and management sectors.

  • Compliance is stricter: Employers must document efforts to hire locally and satisfy new, more detailed legal requirements.

  • Hiring costs vary by employment arrangement. For foreign employees subject to compulsory insurance, employer contributions can reach 20.5% of the applicable salary base, with additional work permit, medical and documentation costs depending on the case.

  • Early planning and local expertise are essential for smooth, compliant onboarding.

Vietnam's Growing Foreign Workforce Landscape

The foreign workforce in Vietnam represents a diverse talent pool from 110 countries worldwide, with the majority coming from China, South Korea, Taiwan, and Japan. Of these employees, 149,195 require work permits while 12,797 are exempt from this requirement. This significant presence of international talent reflects Vietnam's position as an increasingly attractive destination for global businesses.

Vietnam's labour market shows remarkable strength, with total employment reaching 51.9 million people in 2024. The country's labour force participation rate stands at 68.9 percent, with 28.3 percent of employees holding training certificates. These statistics underscore the competitive nature of Vietnam's job market and the strategic importance of accessing international expertise.

Key Requirements for Hiring Foreign Employees

Hiring foreign employees in Vietnam requires both employers and employees to meet rigorous criteria set by law. These standards ensure that foreign employees possess the relevant qualifications, professional experience, and meet all health and legal requirements. In 2026, these requirements are governed primarily by Decree 219/2025/NĐ-CP, which sets out the current framework for foreign workers, work permits and exemptions.

Essential Qualifications and Experience

Foreign employees must fit into clearly defined professional categories, each with specific qualifications and experience requirements:

For foreign experts:

  • Bachelor's degree or higher plus at least 2 years of relevant experience, OR

  • Minimum 1 years of experience with relevant practice certificates

For technical employees:

  • At least 1 year of technical training and at least 3 years of field experience, OR

  • Minimum 5 years of relevant work experience

For managers and executives:

  • Documentation of at least 5 years of experience relevant to the position is required

Under Decree 219/2025/NĐ-CP, experts in priority fields such as finance, science, technology, innovation and digital transformation may qualify with a relevant university degree and at least 1 year of relevant experience. Certain workers in these fields may also qualify for a work permit exemption, subject to confirmation by the competent authority.

Health and Background Requirements

To work legally in Vietnam, foreign employees must also meet strict health and background criteria:

  • Age requirement: Minimum 18 years old with full legal capacity

  • Health certification: Valid medical certificate issued within 12 months

  • Criminal background: Clean criminal record from both home country and Vietnam

  • Legal status: No pending criminal prosecutions or unresolved legal issues

Additional Application Requirements

Foreign employees also need to submit various supporting documents as part of the work permit process:

  • Valid passport and visa

  • Photographs (4x6 cm, white background)

  • Proof of qualifications and/or professional certificates

  • Written employer request for approval to recruit foreign labour (unless exempt)

  • All foreign documents must be legalised, notarised, and translated into Vietnamese.

These detailed requirements ensure that Vietnam can benefit from skilled international talent while maintaining a regulated and competitive job market. Employers and prospective foreign employees should stay up-to-date with the latest legal changes and always prepare documentation well in advance for a smooth hiring process.

Work Permit Application Process and Timeline

Hiring foreign employees in Vietnam requires employers to follow the work permit procedures set out under Decree 219/2025/NĐ-CP. The current framework combines foreign labour demand approval with the work permit application and provides a more streamlined process for employers.

Current Processing Framework

Before a foreign employee can begin work in Vietnam, both employers and employees must undergo a structured two-step process:

Step 1: Employer approval

  • Employers must submit a written explanation of foreign labour demand

  • Post the vacancy for Vietnamese workers for at least 5 working days, where required

  • Demonstrate inability to find qualified local candidates

Step 2: Work permit application 

  • Submit complete documentation package

  • The competent authority reviews the application within 10 working days

  • If the application is refused, a written explanation must be provided within 3 working days

Average timeline: When combining both steps and accounting for preparation and administrative processing, the total duration averages 10 days from start to finish for each work permit application.

Streamlined Process Coming in 2026

Vietnam’s current work permit framework streamlines the application process and places greater responsibility with provincial authorities.

  • Consolidated application steps: The separation between labour demand approval and permit application will be removed, allowing employers to submit a single application package. This major change aims to cut the total processing timeline down to 10 days.

  • Decentralisation of authority: Provincial-level People’s Committees are responsible for issuing, reissuing, extending and revoking work permits.

  • Improved efficiency: This decentralisation is designed to lower administrative barriers, reduce wait times, and provide businesses with faster and more responsive local support.

  • Regulatory basis: These changes are stipulated in Decree No. 219/2025/NĐ-CP, which governs the decentralisation of state management in home affairs, replacing prior requirements linked to central oversight.

Required Documentation

For both current and updated processes, the following key documents are generally required:

  • Employer’s written request to hire foreign labour, including job postings and recruitment outcome

  • Health certificate (valid within the last 12 months)

  • Criminal record check (issued within the last 6 months)

  • Proof of qualifications (degrees, certificates, experience)

  • Recent passport-sized photos

  • Valid passport and visa copies

  • Consular legalisation and notarised translations for applicable foreign-issued documents

Cost Analysis of Hiring Foreign Employees

Understanding the total cost of hiring foreign employees in Vietnam is crucial for international businesses planning their expansion or workforce management. This analysis breaks down expenses into work permit processing fees, additional recruitment and documentation costs, salary benchmarks, regional differences in pay, and mandatory social insurance contributions.

Knowing these components allows companies to budget accurately, ensure compliance, and structure competitive compensation packages for top foreign talent.

Work Permit and Processing Fees

The financial investment for hiring foreign employees includes several components:

Official state fees: Provincial and municipal governments typically charge 400,000–600,000 VND for the work permit itself, with some variation by locality.

Additional processing costs:

  • Consular legalisation: $10 USD per stamp (service agency fees may be higher)

  • Health examination (required): 1–4 million VND

  • Criminal record check: About 200,000 VND

  • Document translation and notarisation: Costs vary by provider

These costs do not include potential agency or legal service fees for professional representation during the application process.

Salary Expectations and Regional Variations

In 2025, the average monthly salary in Vietnam is approximately 14.9 million VND (about $600 USD). However, this is an aggregate figure - real costs vary significantly depending on job role and region.

High-demand sectors:

  • HR Manager: $1,900-$2,800 monthly

  • Finance Manager: $2,100-$3,000 monthly

  • Operations Manager: $1,500–$6,000 monthly

Regional minimum wage structure:

  • Region 1 (Hanoi, Ho Chi Minh City): 5,310,000 VND

  • Region 2: 4,730,000VND

  • Region 3: 4,140,000 VND

  • Region 4: 3,700,000 VND

These figures represent minimum statutory wages. Salaries for skilled expatriates are higher, especially in digital, technology, and management roles, and in major cities where competition for talent is strong.

Mandatory Insurance and Benefits

All foreign employees working under labour contracts are subject to Vietnam’s compulsory social insurance contributions:

Employee contributions (9.5% of salary):

  • Retirement and survivorship fund: 8%

  • Health insurance: 1.5%

Employer contributions (20.5% of salary):

  • Retirement and survivorship fund: 14%

  • Sickness and maternity fund: 3%

  • Work injury and occupational disease fund: 0.5%

  • Health insurance: 3% (in some cases)

Note: Unemployment insurance is not mandatory for foreign employees, but all other contributions apply on gross contracted salary up to 20 times the statutory minimum wage.

Other Personnel Costs

  • Recruitment and onboarding: Partnering with professional recruitment agencies or investing in in-house hiring teams adds to overall cost but can ensure compliance and better access to high-quality candidates.

  • Annual increases and bonuses: Salaries in Vietnam’s competitive sectors are rising by 5–10% annually, and many employers offer generous bonuses - up to 33% of annual salary in some industries - to retain foreign talent.

Strategic Advantages of Vietnam's Labour Market

Vietnam has become a powerful magnet for international businesses and foreign talent thanks to its robust economy, digital transformation initiatives, competitive labor costs, and expanding infrastructure. Companies looking to expand or invest in the region are finding that Vietnam offers a unique combination of fast economic growth, a skilled and affordable workforce, and strong government support for technology and innovation.

This section explores the critical strengths underlying Vietnam’s attractiveness as a destination for hiring foreign employees and building regional headquarters.

Economic Growth and Stability

Vietnam continues to demonstrate economic resilience and dynamic expansion. In the first half of 2026, the country achieved GDP growth of 8.18%, the highest rate for the same period since 2011. Growth has been bolstered by:

  • A thriving manufacturing sector, which processed and exported robust volumes despite global trade disruption.

  • Retail sales of goods and consumer services rose 12.9% in the first half of 2026, supporting domestic demand and business activity.

  • Foreign direct investment (FDI) reached US$40.63 billion in the first eight months of 2026, up 55.4% year on year.

  • Continuous political stability and a transparent, business-friendly environment, which have bolstered investor confidence and reinforced Vietnam’s status as a safe and predictable destination for multinational enterprises.

Skilled Workforce and Digital Transformation

Digitalisation has emerged as a national priority, transforming Vietnam into an emerging hub for technology and specialised skill sets:

  • Vietnam’s digital technology industry generated an estimated US$198 billion in revenue in 2025, up 26% year on year.

  • There is mounting demand for expertise in artificial intelligence, cybersecurity, software development, and other digital fields.

  • Government initiatives are actively supporting technology adoption and promoting innovation across both public and private sectors, enhancing opportunities for both local and foreign talent.

  • Vietnam had 80,052 active digital technology firms in 2025, with the Government targeting 100,000 by 2030.

Cost-Effective Operations

Vietnam offers competitive advantages for international businesses:

  • Vietnam continues to offer competitive labour costs, with regional minimum wages ranging from VND 3.7 million to VND 5.31 million per month in 2026.

  • The strategic location provides businesses easy access to the rapidly growing ASEAN market, and the country is increasingly integrated into key global trade networks.

  • Continued infrastructure investment across transport, logistics, energy and digital networks is supported by a 2026 public investment plan of around VND 1.04 quadrillion, with priority given to highways, railways, airports, seaports, energy and digital infrastructure.

  • The workforce demonstrates strong English proficiency in key sectors, facilitating cross-border collaborations and smooth integration of foreign professionals.

Sector-Specific Hiring Trends for 2025

As Vietnam's economy accelerates into a new era of digitalisation and global integration, sector-specific hiring trends are reshaping the job market for 2026. Businesses are intensifying their search for skilled professionals in technology, manufacturing, and financial services. This targeted hiring surge responds to both ongoing industry transformations and the country’s ambitious economic strategies, driving fierce competition for top talent and creating distinctive opportunities across key sectors.

Technology and Innovation

Vietnam’s technology sector is at the forefront of hiring demand in 2025. Driven by rapid digital transformation and global investment, the sector requires an estimated 350,000 IT employees – yet the current talent pool fills only about 70% of this need, resulting in a persistent and significant skills gap.

Priority areas for recruitment:

  • Artificial intelligence and machine learning

  • Blockchain and cryptocurrency

  • Digital transformation specialists

  • Cybersecurity experts

Fact: Technology & IT Services recorded a 50% Net Employment Outlook in Q3 2026, reflecting continued demand for AI, IT, data and digital skills.

Manufacturing and Industrial

Manufacturing remains the backbone of Vietnam’s job market, evolving rapidly due to new technologies and inflows of foreign investment. In 2026, employers are increasingly prioritising technical and specialist roles that support automation, operational efficiency and digital transformation.

Key hiring highlights:

  • Focus on electronics, textiles, and automotive sectors

  • Growing demand for technical specialists and production managers

  • Emphasis on automation and Industry 4.0 technologies

Financial Services and Banking

The financial sector is experiencing steady growth, propelled by ongoing digitalization and the rise of new fintech solutions. Recruitment in banking, finance, and insurance is forecast to increase by around 3% in 2025, with major expansion in digital services.

Sector-specific developments:

  • Digital banking and fintech expansion

  • Risk management and compliance roles

  • Investment and wealth management opportunities

  • Cryptocurrency and blockchain integration

Summary table: Sector-specific top hiring trends in 2025

Sector

Leading Roles In Demand

Hiring Highlights

Key Trends

Technology & IT

AI & ML specialists, Cybersecurity, Data & IT professionals

Information sector recorded a 64% Net Employment Outlook in Q4 2026

Digital skills gap, rapid digitalisation, AI adoption

Manufacturing

Automation engineers, Managers, Technicians

68% companies recruiting, esp. electronics & auto

Industry 4.0, shift to skilled positions

Financial Services

Digital banking, Compliance, Fintech experts

3% hiring growth, blockchain integration

Fintech expansion, regulatory compliance

Compliance and Legal Considerations

With ongoing reforms targeting Vietnam’s labour market, compliance has taken center stage in the employment of foreign professionals. Recent regulatory changes have introduced heightened oversight, more robust documentation protocols, and streamlined processes – all requiring employers to adopt best practices for legal and procedural alignment.

Understanding these developments and planning proactively is crucial as the evolving legal environment shapes both day-to-day operations and future workforce strategies.

Recent Regulatory Changes

The Vietnamese government has strengthened legal oversight for foreign employees, aiming to support both economic modernisation and global competitiveness:

  • Enhanced foreign employees management under new Home Affairs Ministry oversight

  • Stricter documentation requirements for work permit applications

  • Improved transparency in recruitment processes

  • Expanded exemption categories for certain professional roles

Best Practices for Employers

For full compliance and risk mitigation, employers should:

  • Early planning and preparation: Initiate the work permit or exemption process at least 2–3 months before the employment start date to allow for document preparation, legalisation, and regulatory review.

  • Legalise and translate all documents: Ensure that degrees, work experience certificates, and background checks are legalised in their country of issue, then translated and notarised in Vietnamese for submission.

  • Maintain recruitment records: Keep detailed records of internal and external recruitment efforts – job postings, local applicant pools, interviews, and justifications for hiring foreign talent – to demonstrate good faith compliance with local labour priority policies.

  • Professional support: Engage experienced legal counsel or HR services familiar with local workflows, evolving compliance requirements, and documentation standards. Utilise reliable networks for quick and accurate processing.

  • Stay updated: Continuously monitor for regulatory changes, documentation updates, and deadlines, especially with multiple decrees taking effect throughout 2025 and ongoing shifts in exemption processes.

Future Outlook and Opportunities

Vietnam’s employment regulations are part of a broader national strategy to boost economic modernization, attract global investment, and nurture a resilient, future-ready labour market. As reforms accelerate, both employers and foreign professionals should align their strategies with emerging opportunities and long-term economic trends.

Market Projections

Vietnam’s foreign workforce is expected to grow significantly:

  • Increased demand for specialised skills in emerging technologies

  • Expansion of manufacturing and service sectors

  • Growing focus on sustainability and green economy roles

  • Enhanced regional integration within ASEAN framework

Strategic Recommendations

Vietnam’s dynamic legal landscape, combined with its surging demand for skilled professionals, offers tremendous potential for both employers and international employees. Strategic planning, compliance vigilance, and investment in talent development will be key advantages in this fast-evolving market.

For international companies:

  • Develop long-term talent acquisition strategies

  • Invest in local talent development alongside foreign recruitment

  • Consider hybrid models combining local and international expertise

  • Build strong relationships with Vietnamese educational institutions

For foreign professionals:

  • Focus on high-demand sectors like technology, manufacturing, and finance

  • Develop language skills and cultural competency

  • Build networks within the Vietnamese business community

  • Consider long-term career development opportunities

How Ascentium Vietnam Can Help?

Hiring foreign employees in Vietnam requires careful coordination across work permits, immigration procedures, supporting documentation and employment compliance. With requirements varying by worker category and employment arrangement, early preparation can help employers manage timelines more effectively and reduce the risk of delays.

As businesses build their teams in Vietnam, Ascentium Vietnam can support these requirements as part of the wider hiring and onboarding process, from work permit and immigration support to HR compliance, documentation and workforce coordination. This helps employers manage the practical steps of foreign hiring while keeping their focus on building the right team for their business.

Frequently Asked Questions