Vietnam: Restructure of local administrations aims to streamline government functions

Introduction

Vietnam is undergoing significant administrative restructure in 2025, aimed at modernizing and streamlining government operations. These changes are reshaping how immigration and work authorisation processes are managed, with direct implications for foreign nationals, employers, and legal professionals. This update outlines the key changes, who is affected, and what actions are needed to stay compliant.

Impact

Medium

What has changed?

Vietnam has implemented sweeping administrative reforms under Decree No. 25/2025/NĐ-CP, effective March 1, 2025. Key changes include:

  • Transfer of immigration-related duties from the Ministry of Labor, Invalids and Social Affairs (MOLISA) to the Ministry of Home Affairs (MHA).
  • Judicial record services, including Police Clearance Certificates (PCCs), are now managed by the Ministry of Public Security (MPS).
  • Digitalization of processes: Some applications (e.g., Job Position Approval) are now fully online with digital signatures
Who is affected?

The above mentioned reforms are going to impact all foreign workers in Vietnam, employers hiring foreign nationals and legal and HR professionals managing immigration compliance.

What to expect /impact?

We can expect the following as a result of the reforms:

  • New submission points: Work permit applications must now go through MHA and municipal Public Administration Service Centers.
  • Short-term delays: Transition-related disruptions are likely as agencies adjust and new processes are impemented.
  • Improved efficiency: Long-term goal is a streamlined, digital-first immigration system.
  • Online PCC portal: this is coming soon and will enable free digital applications.
What you need to do

The restructuring will affect ward boundaries in Hanoi and Ho Chi Minh City, potentially changing company addresses, even for those outside the directly impacted provinces.

Per Official Letter No. 4370/BTC-DNTN (April 5, 2025), businesses are not required to update their Enterprise Registration Certificates (ERCs) solely due to these changes. However, if an ERC is updated, all existing work permits must be reissued to reflect the new address. Companies must ensure that the reissuance is completed in order to safeguard their compliance.

All new work permits must reflect the latest ERC and address on issuance.

For further information on Vietnam, please contact the Sterling Lexicon immigration team at [email protected]