LEGAL UPDATE: Draft Decree Replacing Decree 152/2020/ND-CP on Foreign Labor

I. Introduction

The Ministry of Home Affairs is currently drafting a new decree to replace Decree No. 152/2020/ND-CP, which regulates foreign workers in Vietnam and the recruitment and management of Vietnamese workers employed by foreign organizations and individuals in Vietnam (the "Draft"). The Draft is open for public consultation and is expected to impact entities that employ or manage foreign labor, as well as those managing Vietnamese working for foreign employers.

II. Key Changes Introduced by the Draft Decree

1. Streamlined Processing Time for Work Permit Issuance
✅ The Draft consolidates labor demand explanation into the permit process
✅ Processing time shortened to max. 10 working days (from 36 days)
✅ Supports quicker onboarding of foreign talent in priority sectors

2. Revisions to Medical Examination Certificate Requirements
✅ Accepts medical certificates from both domestic and foreign authorities (valid within 12 months)
✅ Certificates from Vietnam must confirm absence of certain communicable diseases
✅ Ministry of Health must clearly issue the list for smooth implementation

3. Streamlining the Criminal Record Requirements
✅ No criminal record required for urgent-entry experts or those exempted from permits
✅ Expands exemption eligibility to high-priority fields
✅ Must include oversight to avoid abuse and ensure national security

4. Easing Requirements for Expert Recognition
✅ University degree alone suffices for recognition in priority fields
✅ Those certified by ministries are exempt from permit procedures
✅ Facilitates entry of qualified young professionals and reduces administrative burdens

5. Introducing Procedures for Re-Issuance and Extension of Work Permit Exemption Certificates
✅ Procedures for extension, re-issuance, and revocation are now defined
✅ Helps prevent disruptions due to expired/missing certificates
✅ Should be implemented via digital platforms for ease of use

6. Decentralizing Work Permit Authority
✅ Applications may be filed with either the Ministry of Home Affairs or provincial authorities
✅ Businesses with branches across provinces may apply centrally
✅ Promotes flexibility and reduces pressure on central agencies, empowering local governance

III. Key Advantages and Challenges for Businesses

✅ Reduced paperwork, shorter timelines, simplified recognition of foreign professionals
✅ Clear policy direction to attract talent in strategic fields like tech, finance, and digital
✅ Decentralized processing allows flexibility in where to apply
? Risk of inconsistent interpretation by different authorities
✅ Businesses must stay informed to adjust recruitment and compliance plans

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Written by: Mr. Luong Van Chuong (Chris) – Partner Lawyer at ALTAS Law & Senior Legal Assistant Nguyen Tran Ngoc Thach - ALTAS Law