Vietnam's labor market is experiencing dynamic shifts, driven by economic recovery and digital transformation, with a focus on attracting and retaining skilled talent. Recent policy updates aim to streamline processes for foreign workers and enhance the overall competitiveness of the workforce. The legal framework for foreign labor has seen significant updates, with key decrees like Decree 152/2020/NĐ-CP and its amendments (e.g., Decree 70/2023/NĐ-CP, Decree 219/2025/NĐ-CP) aiming to streamline work permit processes and introduce new exemptions. Decree 219/2025/NĐ-CP, effective August 7, 2025, consolidates administrative steps for work permit applications, removing the requirement for recruitment notices and foreign labor demand approvals in most cases. Furthermore, new exemptions for experts in priority sectors such as finance, science, technology, innovation, and digital transformation have been introduced. Short-term work missions for foreign specialists can now be up to 90 days per calendar year. Foreign employees with valid work permits can work in multiple provinces for the same employer with just a notification to local authorities. Ho Chi Minh City has a renewed program to attract experts and scientists, offering monthly incomes up to US$3,850 and one-time rewards up to US$38,500. Nationally, a draft strategy aims to establish a national talent database by 2030 to connect domestic and overseas experts. Hiring demand is strengthening in manufacturing, technology, finance, professional services, consumer goods, healthcare, and renewable energy sectors. Vietnam has a young and sizable workforce, with an average age of 32.5 years in 2023. The Employment Law 2025 emphasizes digitalization of labor market information, establishing a National Labor Registration Database, and codifying employee data privacy obligations. A new Trade Union Law, effective July 1, 2025, is expected to enhance the rights of foreign workers, potentially allowing them to join trade unions. Navigating the administrative requirements for work permits and visas can still be complex and time-consuming. Specific criteria and confirmation processes for work permit exemptions for experts in priority sectors are still pending further guidance. Ensuring continuous compliance with the latest labor laws and decrees is crucial to avoid penalties.
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