Contract workforce Vietnam for Foreign Invested Enterprises (FIE)

The development of foreign invested enterprises (FIE) is considered an important factor promoting the industrialization and modernization process and contributing significantly to the economic and social growth of Vietnam. In this article, S4B Vietnam will discuss the topic of contract workforce Vietnam for Foreign Invested Enterprises (FIE).

1. Concept of Foreign Invested Enterprises (FIE)

Foreign Invested Enterprises in English is Foreign Invested Enterprise; abbreviated as FIE. Based on the provisions of positive law and the practical activities of this business entity, it can be understood in the most general way: A foreign invested enterprise is an enterprise established in Vietnam in which there is the participation of individuals with foreign nationality, organizations established abroad as owners who own all or part of the capital in the enterprise.

A foreign invested enterprise must have the presence of foreign investors as owners or co-owners of the enterprise.

Foreign investors are understood to be individuals with foreign nationality, organizations established abroad, they are greatly influenced by the country of their nationality. However, when investing in an economic organization in Vietnam, specifically a foreign-invested enterprise, these foreign investors must meet the conditions on business entities as prescribed by Vietnamese law.

According to the 2012 Labor Code, FIEs can directly recruit Vietnamese employees or recruit through an authorized labor agency or PEO services Vietnam. Then, FIEs are required to register the list of recruited Vietnamese employees with the local labor department to have employee onboarding Vietnam and send periodic reports on the use and change of employees to the labor department.

PEO services Vietnam as new trend in 2025

2. Registering foreign employees

Foreigners working in Vietnam for 03 months or more must have a work permit. The duration of the work permit must correspond to the duration of the labor contract, with a maximum duration of 36 months but can be extended at the request of the employer.

No less than twenty days before the foreigner’s expected start date of employment, the FIC must submit an application to the Ministry of Labour, Invalids and Social Affairs or its authorised agency for a work permit for that foreigner. The Ministry of Labour, Invalids and Social Affairs or its authorised agency shall make a decision within 15 days of receipt of the application. Clear reasons must be provided if the application is rejected. In addition, the work permit may be revoked in certain circumstances, including if the foreigner violates Vietnamese law.

3. Five groups of foreigners working in Vietnam are exempted from work permits:

(i) foreigners entering Vietnam to work for less than 03 months,
(ii) members of a limited liability company with two or more members,
(iii) owners of a single-member limited liability company,
(iv) members of the board of directors of a joint stock company,
(v) foreigners entering Vietnam to provide services,
(vi) foreigners entering Vietnam to work to resolve urgent situations such as incidents, complicated technical and technological situations that arise, affect or threaten to affect production and business that Vietnamese experts or foreign experts currently in Vietnam cannot resolve. Foreigners must apply for a work permit if the working period is more than 03 months; and
(vii) a foreign lawyer whose practice certificate has been granted by the Ministry of Justice in Vietnam. No less than seven days before the commencement of employment, foreign workers exempt from work permits must register with the Department of Labor, Invalids and Social Affairs where the employer has its head office. The registration must clearly state the employee’s name, age, nationality and passport number, the date of commencement and termination of employment, and a description of the work to be performed.

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>>>Read more: New FDI regulations for foreign investors in Vietnam’s updated FDI law 2025

The new Labor Code 2019 takes effect from 1 January 2021 and completely replaces the current labor regime (‘Labor Code 2012’). Among the notable changes applicable to foreign workers are as follows:

The maximum duration of a work permit for a foreign worker is two (2) years and can only be renewed once for a maximum duration of two (2) years. This means that a new application for a work permit must be prepared every four (4) years for those working long-term in Vietnam. Under current law, the maximum term of a work permit is also two (2) years and can be renewed indefinitely.

Employers and foreign workers may enter into multiple fixed-term employment contracts. This provision is intended to ensure that the term of a foreign worker’s employment contract is consistent with the term of his or her issued work permit and to resolve a long-standing legal contradiction regarding the mandatory use of indefinite-term contracts after two fixed-term contracts.

If your business is looking for a local HR subcontractor in Vietnam, please do not hesitate to contact us. At S4B Vietnam, We specialize in supporting foreign businesses to successfully establish contract workforce Vietnam and provide PEO services Vietnam. We handle every step of the process—efficiently and transparently. Below is our contact information, call us today!

S4B Vietnam

  • Address: Unit 701B – 701C, Tower A, Handi Resco 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam.
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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