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A Promising Step Toward Openness – With Details Still to Be Defined
Vietnam’s new Decree 219/2025 is making waves in the foreign business community. It’s a clear signal that the country is aiming to modernize its approach to international talent and foster a more investment-friendly environment by removing some outdated and irrelevant requirements. The updates are encouraging, but as with many policy shifts, the full impact will depend on how they are implemented in practice, and early signs suggest the reality may not be as positive as it initially appears.
Let’s take a look at what’s new, without diving too deep into the legal weeds.
A More Flexible Approach to Short-Term Work
One of the most talked-about changes is the revision of short-term work arrangements. Previously, foreign specialists could work in Vietnam for up to 30 days per visit, no more than 3 times per year, without needing a work permit, and there is no simplified short-term work permit available in Vietnam.
Under Decree 219, greater flexibility is introduced: foreign workers can now stay and work for up to 90 days per calendar year without a permit, with no restriction on the number of days per stay or number of entries. This opens the door to more agile project-based or advisory roles, without the need to navigate the full work permit process.
Work Permit Exemptions for Key Sectors
Professionals in priority fields such as technology, finance, science, and digital transformation may now be eligible for work permit exemptions. These exemptions are subject to approval by relevant authorities, and while the criteria and decision-making processes are still awaiting clarification and implementation, the intent is clear: Vietnam is looking to attract high-value expertise.
Streamlined Processes and Reduced Paperwork
The labor market test (job posting) is now only required for foreign nationals hired locally, and no longer applies to assignments or intra-company transfers.
Foreign labor demand approval following job posting is also now only required for local hires and has been integrated into the work permit application process, reducing steps and speeding up approvals.
Experience requirements have been relaxed for certain roles in newly defined priority sectors. For example, foreign experts need 2 years of experience in the relevant field, or now just 1 year if they hold a relevant degree in a priority sector.
Employers are no longer required to submit semi-annual reports on foreign staff, one less administrative burden to manage.
Cross-Province Work Made Easier?
Foreign workers holding a valid work permit can now operate in other provinces without needing a new permit. All that’s required is a 3-day advance notification to the local labor office. This is a practical win for companies with operations across multiple regions.
However, what the new decree doesn’t address is that in practice, if a foreigner is employed and holds a work permit in one province but is physically based at a third-party entity (not directly affiliated with the employer), such as a factory partner or vendor, the work notification report may not be accepted. This remains a blocking point for many companies that have foreign staff dispatched to third-party partner sites in other provinces, even though they are working on behalf of their employer. No clear guidance has been provided on this issue to date.
Signals of Reform – With Implementation Still Evolving
While Decree 219 introduces several positive changes, it’s important to recognize that some elements are more indicative of policy direction than immediately actionable reforms. The practical rollout may vary depending on local interpretations and administrative readiness.
That said, the decree reflects a genuine effort to align Vietnam’s labor policies with global standards and business needs. It’s a step forward, and one that will hopefully be followed by clear guidance and consistent implementation.
Final Thoughts: Progress with Optimism
Decree 219 shows that Vietnam is thinking ahead, aiming to be more competitive and welcoming to international talent, on which global companies in the country continue to rely. For foreign professionals and businesses, it’s a sign of progress and a reason to stay engaged and informed.
As always, patience and preparation will go a long way. The paperwork, as well as some grey areas and legal loopholes, may not disappear overnight, but the direction is promising.
