Work permits (WPs) and temporary residence cards (TRCs) are essential for foreign nationals who wish to work and reside legally in Vietnam. Although they are often discussed together, they are governed by different legal regimes and serve distinct purposes. Understanding the interaction between them can help foreign investors avoid unnecessary procedures and delays.
WP requirements for foreign investors
As a general rule, foreign nationals working in Vietnam must obtain a valid WP. Both the foreign worker and the employer may be subject to administrative sanctions where employment is undertaken without the required authorisation.
This raises an important question for foreign investors who actively participate in the management or operation of the enterprises they establish in Vietnam. Foreign investors are, in principle, also subject to the WP requirement unless they fall within one of the statutory exemptions, including:
Owners or capital-contributing members of a limited liability company with a capital contribution of at least VND 3 billion;
Chairpersons or members of the board of directors of a joint stock company with a capital contribution of at least VND 3 billion; or
Persons responsible for establishing the commercial presence of a foreign entity in Vietnam.
Importantly, eligibility for a statutory exemption does not automatically entitle an investor to work in Vietnam without further procedural compliance. Where required under the applicable labour regulations, the investor must obtain a written confirmation of exemption from the WP requirement issued by the competent labour authority before relying on the exemption.
TRCs for foreign investors
Unlike the WP regime, eligibility for an investor TRC depends on the investor’s immigration status and investment capital rather than employment status.
Vietnam classifies investor visas (DT visas) into four categories:
DT1 visa – investment capital of at least VND 100 billion, or investment in high-priority sectors under Vietnamese law; eligible for a TRC of up to 10 years;
DT2 visa – investment capital from VND 50 billion to less than VND 100 billion, or investment in incentivised sectors under Vietnamese law; eligible for a TRC of up to five years;
DT3 visa – investment capital from VND 3 billion to less than VND 50 billion; eligible for a TRC of up to three years; and
DT4 visa – investment capital of less than VND 3 billion; eligible for a visa of up to 12 months but not a TRC.
Accordingly, only holders of DT1, DT2, and DT3 visas may apply for an investor TRC, subject to the applicable statutory conditions.
Interaction between WP requirements and investor TRCs
Although WPs and TRCs are often obtained by the same individual, they perform different legal functions. A WP (or, where applicable, a confirmation of exemption from the WP requirement) authorises lawful employment but does not confer any right of residence. Conversely, a TRC permits long-term residence in Vietnam but does not, by itself, authorise employment.
For foreign nationals applying for a TRC on the basis of employment, the WP or the confirmation of WP exemption generally forms part of supporting documents for the TRC application. Accordingly, the WP procedure is ordinarily completed before the TRC application is submitted.
The position is different for foreign investors who qualify for an investor TRC. Their eligibility is determined by their investment status under Vietnamese immigration law rather than their employment status under the labour laws. Consequently, neither a WP nor a confirmation of WP exemption forms part of the statutory application dossier for an investor TRC.
As a practical consequence, an eligible foreign investor holding a DT1, DT2, or DT3 visa may generally submit the application for a confirmation of WP exemption concurrently with the application for an investor TRC. There is no statutory requirement to obtain confirmation of exemption from the WP requirement before applying for the investor TRC.
By contrast, holders of a DT4 visa are not eligible for an investor TRC and should consider alternative immigration options if they intend to remain in Vietnam for an extended period.
Final thoughts
As Vietnam’s labour and immigration regimes operate independently, foreign investors should assess their eligibility for both WP exemptions and investor TRCs at an early stage of their investment. A proper understanding of these parallel frameworks will facilitate regulatory compliance and support long-term business operations in Vietnam.
