Expats living in Vietnam can enjoy plenty of exciting opportunities, but it’s really important to get a handle on the local laws to make your stay as smooth as possible.
From employment regulations to residency requirements, Vietnam has specific legal guidelines that you need to follow. These laws might be quite different from what you’re used to back home, and ignoring them can lead to serious complications.
This guide will shed light on some key laws that expats living in Vietnam need to know, helping you enjoy your time in this vibrant country while staying compliant with local regulations.
Immigration and Residency Laws for Expats Living in Vietnam
Vietnam’s immigration laws, governed by Law No. 47/2014/QH13 on Entry, Exit, Transit, and Residence of Foreigners, provide the framework for visa issuance, work permits, and residency status (as amended by Law No.51/2019/QH14 dated 24 November 2019). Here’s an in-depth look at these categories with added legal details.
Types of Visa
There are several types of visas available, each designed for specific purposes:
Tourist Visa (DL Visa)
This visa falls under the category of short-term visas (DL visa) with maximum of 90 days as per the law. But in practice, it is typically valid for 30 days, with an option for a 30-day extension. It is issued under the provisions of Article 8 and Article 9 of the Law on Entry, Exit, Transit, and Residence.
Requirements:
- Passport valid for at least six months.
- Proof of accommodation (e.g., hotel booking).
Business Visa (DN1, DN2 Visa)
Under Article 8, the business visa (DN1, DN2 visa types) is intended for individuals conducting business or engaging in commercial activities. These visas can be issued for single or multiple entries and vary in duration from one month to 12 months.
Requirements:
- Formal invitation letter from a registered Vietnamese company or organization.
- Comply with Article 10, which governs the sponsorship of foreigners for work or business purposes.
Work Visa (LD Visa)
The work visa, classified under Article 8 as an LD visa, is required for foreigners taking up employment in Vietnam. This visa is contingent upon the issuance of a work permit, as required by Decree 152/2020/ND-CP (as amended by Decree 70/2023/ND-CP), which governs the management of foreign workers. The LD visa is typically valid for up to two years, in compliance with the Labor Code.
Requirements:
- Job offer from a Vietnamese employer.
- Health certificate.
- Proof of professional qualifications.
- Criminal record.
Investor Visa (DT Visa)
The investor visa is specifically designed for foreign investors under Article 8, known as the DT visa. It is valid for up to five years and offers more extended residency options for foreign nationals investing in Vietnamese enterprises. The investor visa aligns with the government’s policy to encourage foreign direct investment (FDI).
Requirements:
- Proof of investment (e.g., investment certificate and bank documents).
- Eligible for applying for a Temporary Residence Card (TRC).
Legal Consequences of Visa Overstays
Overstaying a visa in Vietnam is a violation of the Law on Entry, Exit, Transit, and Residence and may lead to significant penalties.
Fines for overstays range from 500,000 to 2 million VND per day, in accordance with Article 18 of the law. In more severe cases, offenders may face deportation or a ban on re-entry into the country.
>>> Learn more: Visas And Work Permits For Expatriates In Vietnam
Work Permits
Foreigners intending to work in Vietnam must obtain a work permit, as mandated by Decree 152/2020/ND-CP (as amended by decree 70/2023/ND-CP). Eligibility criteria include being at least 18 years of age, having the necessary professional qualifications and experience, and holding a clean criminal record. Work permits are issued for a maximum of two years and may be renewed.
Notably, some foreign workers are exempt from obtaining work permits, such as foreign investors and those holding enterprise managerial or executive positions as defined in the Law on Enterprise and the company’s Charter.
Employers who fail to secure the necessary work permits for their foreign employees may face fines ranging from 30 to 75 million VND under Decree 12/2022/ND-CP, which governs administrative penalties in labor-related matters.
Temporary and Permanent Residency
Temporary Residence Cards (TRCs)
TRCs are issued under Article 36 of Law No. 47/2014/QH13 as amended by Law No.51/2019/QH14 dated 24 November 2019, allowing expats to reside in Vietnam for periods ranging from one to ten years, depending on their visa type and work or investment status.
TRCs offer multiple benefits, including simplified entry and exit from the country without the need for frequent visa renewals.
The application process for TRCs requires providing documentation such as a valid work contract or investment certificate, as per the guidelines in Circular No. 31/2015/TT-BCA.
Permanent Residency (PR)
Permanent residency is governed by Article 39 of Law No. 47/2014/QH13 as amended by Law No.51/2019/QH14 dated 24 November 2019.
Foreigners who have lived in Vietnam for at least three years under a work visa, or those with family ties to Vietnamese citizens, are eligible to apply for permanent residency.
Applicants must provide proof of financial stability, a valid health check, and residency status.
Permanent residents enjoy many of the same rights as Vietnamese citizens, including the ability to work and reside in Vietnam without the need for a visa.
Employment Laws for Expats Living in Vietnam
Expats working in Vietnam must familiarize themselves with the country’s employment laws to ensure they meet legal requirements and avoid potential disputes.
Vietnam’s labor laws are governed primarily by the Labor Code 2019 (Law No. 45/2019/QH14), which outlines workers’ rights and responsibilities, contract conditions, dispute resolutions, and employment protections.
>>> Learn more: Understanding Labor Law in Vietnam for Foreigners
Below are some of the key aspects expats living in Vietnam need to understand.
Work Permits and Exemptions
One of the most critical aspects of employment law for expats is the requirement for a work permit (WP). All foreigners seeking employment in Vietnam must obtain a valid work permit unless they fall under specific exemptions outlined in Decree 152/2020/ND-CP (as amended by decree 70/2023/ND-CP). These exemptions include, for example:
- Owners or capital contributors of a limited liability company with a minimum capital contribution of VND 3 billion (approximately USD 120,000).
- Chairman or Members of the board of directors of joint-stock companies with a minimum capital contribution of VND 3 billion (approximately USD 120,000).
- Individuals entering Vietnam for less than three months for marketing or resolving complex technical issues that cannot be addressed by local experts.
- Foreign lawyers with a practicing certificate in Vietnam.
- Spouses of Vietnamese citizens residing in Vietnam.
The work permit application requires several documents, including a health check, proof of qualifications, and a criminal background check from the expat’s home country. Permits are typically issued for a period of two years and must be renewed before expiration.
Employers are legally obligated to ensure their foreign employees hold valid permits. Non-compliance can result in penalties under Decree 12/2022/ND-CP, which imposes fines ranging from 30 million to 75 million VND.
Employment Contracts for Expats Living in Vietnam
The Labor Code mandates that employment contracts in Vietnam must be in writing, except for work lasting less than one month. Contracts can be signed for a definite term (from 12 to 36 months) or an indefinite term, with both options defining specific employment terms, wages, working hours, and job responsibilities.
Article 20 of the Labor Code stipulates that an employee cannot sign more than two definite-term contracts consecutively. If a third contract is signed, it must be for an indefinite term. However, the foreign employees can have several definite term contracts.
Working Hours, Overtime, and Rest Days
Vietnam’s labor laws limit working hours to 8 hours per day and 48 hours per week, with a standard workday being eight hours.
Overtime is allowed but capped at 200 hours per year or 300 hours in specific industries, as per Article 107 of the Labor Code. Expats working overtime are entitled to higher pay rates: 150% of regular wages for overtime on weekdays, 200% on weekends, and 300% on public holidays.
Employees must receive at least one full rest day per week, and additional rest periods are required for those in hazardous industries or professions.
Termination and Severance Pay
Terminating an employment contract in Vietnam must be done in accordance with the provisions of the Labor Code. Employers may terminate contracts only for legitimate reasons, such as:
- Repeated violations of company policies
- Poor performance
- Serious misconduct
- Prolonged illness
- Redundancy caused by business restructuring.
Expats, like all employees, are normally entitled to a 30-day notice period for definite-term contracts and a 45-day notice period for indefinite-term contracts, as outlined in Article 34 of the Labor Code.
In cases of contract termination, expats are entitled to severance pay if they have worked for the employer for more than 12 months.
Severance pay is calculated at half a month’s salary for each year of service. However, if the termination is due to the employee’s misconduct or violation of contract terms, severance pay may be forfeited.
Social Insurance and Health Insurance
Expats employed in Vietnam are subject to compulsory social insurance contributions if they hold a work permit and have an employment contract lasting more than one year. Social insurance covers pension, sickness, maternity leave, and workplace accidents. Both employers and employees contribute to the social insurance fund, with the employer typically covering 17.5% of the salary and the employee contributing 8%.
Additionally, expats living in Vietnam are required to participate in health insurance, which provides coverage for medical care and hospitalization. Health insurance contributions are shared between employers and employees, with the employer paying 3% and the employee contributing 1.5%.
Dispute Resolution
Employment disputes can be resolved through the company’s internal procedures or taken to the labor arbitration council, if necessary.
In Vietnam, the courts also handle more serious cases of labor disputes, especially if mediation fails. It is advisable for expats to familiarize themselves with these processes to ensure their rights are upheld in the event of a dispute.
Tax Laws for Expats Living in Vietnam
Expats living and working in Vietnam are subject to the country’s tax laws, which are governed by the Law on Personal Income Tax (PIT), as well as other relevant decrees and circulars.
Tax Residency Status
Vietnam’s tax laws differentiate between residents and non-residents for tax purposes. An expat is considered a tax resident if they meet one of the following conditions:
- They stay in Vietnam for 183 days or more within a tax year.
- They have a registered place of permanent residence in Vietnam, as per their visa or residence permit.
Tax residents are taxed on their worldwide income at progressive rates ranging from 5% to 35%, depending on their income level. Meanwhile, non-residents are only taxed on their Vietnam-sourced income at a flat rate of 20%.
Personal Income Tax (PIT)
For tax residents, income is classified into categories such as salary, business income, capital investment, and capital gains. Salary is the most common category for expats, and it is subject to progressive PIT rates. Employers typically deduct PIT from employees’ salaries and remit it directly to tax authorities.
Deductions for dependents and Social Insurance Contributions
In addition to PIT, expats employed in Vietnam are also required to contribute to social insurance, as mandated by Decree 143/2018/ND-CP. These contributions cover health insurance, unemployment insurance, and pension benefits. Expats with a work contract of at least one year are required to contribute 8% of their salary to the social insurance fund, while employers contribute an additional 17.5%.
Expats living in Vietnam can claim deductions for dependents (typically 9 million VND per dependent), along with other deductions for health insurance premiums and charitable contributions.
Filing Tax Returns
Tax returns must be filed quarterly or annually, with the deadline usually falling on March 31. Failure to comply can result in fines and penalties, ranging from VND 1 million to VND 50 million for late submissions.
Property Ownership and Leasing Laws for Expats Living in Vietnam
While Vietnam offers opportunities for foreign individuals to own and lease properties, strict legal regulations apply, and expats must be aware of these rules to avoid potential legal issues.
Property Ownership for Expats Living in Vietnam
Vietnam’s laws on property ownership for foreigners are outlined in Law on Housing 2014 (Law No. 65/2014/QH13), which grants certain rights to expats.
Foreigners are allowed to purchase and own properties, but restrictions exist. Expats can own apartments, houses, or villas in a commercial housing development, provided they meet the legal requirements.
Foreign ownership is limited to a maximum of 30% of the total apartments in a single building or 10% of the houses in a residential area. Additionally, foreigners can only own property for up to 50 years, with an option to extend the ownership term, subject to approval.
>>> Learn more: Property Taxes in Vietnam for Foreign Investors
One critical point for expats to remember is that the Land Law 2013 prohibits foreign nationals from buying land directly, so any land ownership must be through leasing arrangements. To qualify for property ownership, expats must hold a valid visa and not work for foreign diplomatic missions or non-governmental organizations, as they are excluded from these property ownership rights.
Leasing Property in Vietnam
Leasing property is a more accessible option for most expats living in Vietnam. The Civil Code 2015 governs rental agreements in Vietnam. Expats have the right to lease properties for residential or commercial purposes, and leases are typically valid for one to five years, though longer contracts can be negotiated.
The lease contract must be in writing and include clear terms regarding rental payments, property maintenance, security deposits, and conditions for termination.
Both the landlord and tenant must agree on the rental price, which is typically paid monthly, and any disputes related to the lease are resolved under Vietnamese contract law.
Expats should ensure the lease is registered with the local housing authority, as this is required for contracts longer than six months.
Family and Personal Laws
Vietnam’s family laws are primarily governed by the Law on Marriage and Family 2014 (Law No. 52/2014/QH13), which covers key areas such as marriage, divorce, child custody, and inheritance.
Marriage in Vietnam
In Vietnam, both expats and Vietnamese nationals are allowed to marry under the country’s laws. However, marriages involving a foreigner are subject to additional legal requirements.
According to Article 126 of the Law on Marriage and Family, a foreigner can marry a Vietnamese citizen, but both parties must meet the legal age for marriage (20 for men and 18 for women) and provide necessary documents such as:
- A valid passport
- A certificate of marital status (proving they are not already married)
- A health certificate confirming they are mentally fit for marriage
Marriages must be registered at the local Department of Justice where the Vietnamese partner resides.
The marriage between a foreigner and a Vietnamese citizen is legally recognized in Vietnam as long as it meets the country’s requirements. It’s important to note that Vietnamese law prohibits marriages between individuals of the same sex and between certain family members.
Additionally, foreign marriages must be monogamous, as polygamy is illegal under Vietnamese law.
For foreign couples living in Vietnam, marriages performed outside of Vietnam are recognized if the marriage is valid under the laws of the country where it took place. However, it is advisable to register the marriage with the Vietnamese authorities for administrative purposes.
Divorce and Child Custody
For expats, divorce in Vietnam is governed by Article 127 of the Law on Marriage and Family. If one spouse is Vietnamese and the other is a foreigner, or if both spouses are foreigners residing in Vietnam, the Vietnamese courts will handle the divorce. Grounds for divorce include irreconcilable differences or any of the causes outlined in Article 56 of the Law on Marriage and Family, such as domestic violence or adultery.
During divorce proceedings, Vietnamese law will address child custody, property division, and spousal support. The courts usually prioritize the parent who can offer the best living conditions and care for the child, but custody arrangements can be negotiated. As for property, it’s typically divided 50-50, unless the spouses agree on a different arrangement.
Adoption
Vietnam allows expats to adopt Vietnamese children, provided they comply with Vietnamese Adoption Law and the Hague Convention on Intercountry Adoption, to which Vietnam is a signatory. Expats who wish to adopt must meet several criteria, including being at least 20 years older than the child and having the financial and emotional means to provide for the child’s well-being. The adoption process involves both domestic and international legal procedures, and approval is granted by the Ministry of Justice.
Criminal Laws
Vietnam’s criminal law system is governed by the Penal Code 2015 (amended in 2017), which outlines various offenses and penalties. The legal system operates on strict interpretations of the law, and any violation, intentional or unintentional, can result in serious consequences.
Common Offenses and Penalties
Some common offenses that expats should be aware of include:
- Drug Offenses: Vietnam has some of the strictest drug laws in the world. The Criminal Code imposes heavy penalties for drug possession, trafficking, and use. Even possession of small amounts of illegal substances can lead to severe penalties, including imprisonment of up to 20 years or, in extreme cases, life imprisonment or the death penalty.
- Driving Violations: Vietnam’s Road Traffic Law imposes strict rules on driving under the influence of alcohol. Driving while intoxicated can lead to fines, imprisonment, and, in serious cases, criminal charges if the offense results in injury or death. The legal blood alcohol concentration (BAC) limit for drivers is extremely low, and random breath tests are common, especially in major cities.
- Theft and Property Crimes: Theft, burglary, and vandalism are punishable offenses. Even petty theft can result in severe penalties, including imprisonment for up to three years, depending on the value of the stolen property. More serious crimes, such as armed robbery or fraud, carry much harsher sentences, including long-term imprisonment.
- White-Collar Crimes and Fraud: Expats working in business or management positions must ensure compliance with Vietnamese business law, particularly regarding tax reporting, company registration, and employee relations, as violations can lead to criminal charges.
Public Order and Respect for Authorities
Vietnam’s laws place a strong emphasis on public order and respect for authority. Expats must avoid participating in protests, demonstrations, or any activities deemed disruptive to the public. Actions that are seen as disrespectful to government officials or the national flag, for example, can result in criminal charges. Public acts that insult or defame others can also lead to legal action under Vietnamese defamation laws.
Legal Representation and Due Process
In Vietnam, expats have the right to legal representation if they are arrested or charged with a crime. It’s important to find a lawyer with experience in criminal cases involving foreigners to ensure proper legal support.
While the Vietnamese legal system guarantees a fair trial, language barriers and differences in legal practices can complicate the process for expats.
Deportation
In some cases, rather than imprisonment, expats convicted of criminal offenses may be deported from Vietnam. Deportation is typically issued for less severe crimes or after serving a portion of a sentence.
Once deported, an individual may face restrictions or a permanent ban on re-entering Vietnam.
The Importance of Legal Guidance for Expats Living in Vietnam
For expats living in Vietnam, understanding the local legal system—whether it’s criminal law, property ownership, or family matters—can be tricky. Vietnam’s laws can differ a lot from those in other countries, and even small mistakes can have serious consequences. That’s why having solid legal advice isn’t just helpful, it’s essential.
At Russin & Vecchi, a top international law firm in Vietnam, we offer expert legal services designed specifically for expats. With decades of experience and a deep understanding of both Vietnamese and international law, we make sure expats can navigate the country’s legal system with confidence.
Whether you need help with visa regulations, work permits, temporary residency cards, property transactions, or even criminal defense, our experienced attorneys are here to provide clear, practical solutions that keep you on the right side of the law.
Don’t leave your legal matters to chance. Contact us for a consultation and take the first step towards peace of mind while living in Vietnam.
