Vietnam Issues New Decree 393/2026 on Foreign Worker Rules and Work Permit Exemptions

Expanded Pathways for Strategic and High-Skilled Talent

The decree supports Vietnam’s efforts to attract talent in priority sectors such as:

• Artificial intelligence (AI)
• Semiconductors
• Digital transformation
• Advanced manufacturing
• Strategic technologies

New and expanded work permit exemption pathways are available for certain highly skilled professionals, investors, and qualifying strategic technology personnel.

Updated Work Permit Exemptions

Several categories remain eligible for work permit exemptions, including:

• Investors and shareholders meeting minimum capital thresholds
• Certain intra-company transferees
• Strategic technology experts
• Participants in designated AI talent programs

Employers should review exemption eligibility carefully, as supporting documentation requirements remain important even where a work permit is not required.

Short-Term Assignments Still Require Careful Planning

The decree confirms that some foreign nationals working in Vietnam for up to 90 cumulative days per calendar year may qualify for exemptions. However, assignment duration alone does not automatically eliminate work authorization requirements.

Companies should assess each assignment based on:

• Job function
• Employment structure
• Compensation arrangements
• Total time spent in Vietnam

This is particularly important for regional employees who make multiple business trips to Vietnam throughout the year.

Changes for Intra-Company Transfers

Employers relying on intra-company transfer (ICT) programs should review employee classifications.

While managers, executive directors, and experts continue to qualify under ICT provisions, technical workers no longer receive the same treatment under the new framework. Existing assignment structures may therefore require reassessment.

Increased Employer Compliance Obligations

Foreign Worker Reporting Returns

Decree 393 reintroduces periodic reporting obligations for employers using foreign workers.

Reports must be submitted:

• Before June 5 each year
• Before December 5 each year

Employers should ensure appropriate tracking processes are in place before the new rules take effect.

Greater Focus on Employment Structures

The decree also reinforces that foreign employees must be hired to meet the employer’s direct business needs and prohibits foreign labor subleasing arrangements.

Organizations using:

• Employer-of-record (EOR) models
• Payroll-only sponsorship arrangements
• Client-site secondments
• Complex outsourcing structures

should review their arrangements to ensure ongoing compliance under the new framework.

Administrative Improvements

The new rules include several welcome simplifications:

• Foreign-issued medical certificates may continue to be accepted under the revised framework.
• Certain work permit extension applications no longer require a new medical certificate.
• Work permits generally remain valid for up to two years and may be extended once for an additional period, subject to eligibility requirements.