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back to index backASIAtalk September,  2005

Vietnam's Government Maintains Limit on the Number of Expatriate Employees Companies May Hire

Vietnam's Decree 93, issued in July 2005, serves to continue the government's previous restriction on the number of foreign workers a company might hire, which was 3 percent of the company's total staff members.

The limit applies to state-owned enterprises, locally owned private businesses, and foreign-owned businesses. But there are several exemptions to the 3 percent regulation, such as firms that have just launched operations.

Such firms need permission from the Chairperson of the local People's Committee of the firm's headquarters. Also exempt are foreign contractors, branch offices of foreign companies or law firms, and offices of foreign projects in Vietnam. These groups also need to obtain permission from the Chairperson of the local People's Committee.

In addition, each expatriate worker needs to obtain a work permit; exceptions to this include management board members, heads of representative offices of companies, and members of projects not exceeding three months. Work permits are valid for three years.

Source: Globality newsletter - GAI

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