Amendments to regulations on foreign workers working in Vietnam in the new context

On May 10, 2025, the Ministry of Home Affairs presented a report summarizing the implementation of Decree No. 152/2020/ND-CP and Decree No. 70/2023/ND-CP, which proposes a series of amendments and supplements to adjust regulations on foreign workers working in Vietnam. These proposals not only reflect the obstacles in the implementation of current regulations but also demonstrate Vietnam's efforts in adapting to the new socio-economic context, especially in the period of accelerating national industrialization, modernization and digital transformation. This article will analyze in detail the specific reasons and causes of the proposal from the Ministry of Home Affairs for this regulation.

1. Context of requirements to promote economic development and attract high-quality human resources

1.1. Industrial Revolution 4.0 and technology development strategy

One of the main reasons for the Ministry of Home Affairs to propose to adjust regulations is the urgent need to attract high-quality human resources in the context of the industrial revolution 4.0. The report emphasizes that Resolution No. 57-NQ/TW dated December 22, 2024 of the Politburo has identified the development of science, technology, innovation, and digital transformation as the main driving force for economic modernization. Fields such as the semiconductor industry, artificial intelligence, and green energy are being prioritized for development, requiring highly qualified human resources, especially foreign experts.

Currently, the regulations in Decree 152/2020/ND-CP require foreign experts to have a university degree or higher and at least 3 years of working experience. However, in high-tech industries, many recent university graduates or young professionals from developed countries may possess advanced skills but do not yet meet the experience requirements. For example, in the semiconductor industry, the report points out that countries such as the United States and Europe have top-tier training systems at universities such as MIT, Stanford, or the EuroTech Universities network, which produce high-quality human resources but do not always meet the three-year experience criterion. Therefore, the Ministry of Home Affairs proposes to supplement a number of cases in which foreign workers only need to graduate from university in priority fields to attract talents, in line with the strategy for the development of the semiconductor industry to 2030 and the vision to 2050 according to Decision No. 1018/QD-TTg dated September 21, 2024 of the Prime Minister.

1.2. International competition in attracting human resources

Vietnam is competing with other countries in the region and around the world to attract foreign experts and investors. The report shows that foreign workers in Vietnam come from about 110 countries, with China (30.9%), South Korea (18.3%), and Japan (9.5%) accounting for a large proportion[1]. However, current regulations, such as the requirement for documentation of experience or certification procedures from competent authorities, may create barriers for experts from these countries or countries with friendly relations with Vietnam, such as Laos. The amendment to the regulation, for example, allows Lao students who graduated in Vietnam or foreign workers whose parents are Vietnamese citizens to work without a work permit, in order to expand opportunities to attract human resources and strengthen diplomatic relations.

2. The need for administrative reform and decentralization and decentralization

2.1. Promoting decentralization and decentralization

The Law on Organization of Local Government 2025 and Resolution No. 04/NQ-CP dated January 10, 2022 emphasize decentralization and decentralization to improve the efficiency of state management. Currently, the authority to issue work permits is divided between the Ministry of Home Affairs (Employment Department) and localities, but the process is still concentrated at the central level for some cases, such as organizations established by the Government or ministries and branches. This causes overlap and delays in processing documents, especially in localities with many foreign workers such as Hanoi and Ho Chi Minh City.

The Ministry of Home Affairs proposes to decentralize more thoroughly to localities, allowing provincial-level People's Committees and professional management agencies (authorized) to carry out procedures related to the issuance, extension, and revocation of work permits. This not only reduces the load on central agencies but is also in line with the orientation of administrative reform, helping localities to be more proactive in managing foreign workers, especially in industrial parks and key economic zones.

2.2. Minimization of administrative procedures

The report of the Ministry of Home Affairs as well as many businesses has pointed out that some current regulations, such as the requirement to post recruitment notices for Vietnamese workers before employing foreign workers, are formal and ineffective. According to opinions from localities such as Hanoi and Ho Chi Minh City, this regulation is not in line with reality, because many businesses have clearly identified the need to use foreign workers for highly specialized positions that Vietnamese workers have not been able to meet. Maintaining this process increases the processing time (up to 36 days) and costs for the business. The Ministry of Home Affairs proposes to integrate the steps of approving labor needs and submitting licensing documents, reducing the processing time to 10 days, in order to simplify procedures and create favorable conditions for businesses.

It can be said that the reduction of administrative procedures in the field of labor not only meets the requirements of enterprises that need to use foreign workers, but also meets the requirements of the Party and the State in the reform of public administration with the tendency to become a unit serving and creating business activities of enterprises to promote promoting the development of the private economy.

Ministry of Home Affairs Headquarters. Source: Ministry of Home Affairs

3. Application of information technology and digital transformation

3.1. Limitations in labor data management

In the context that the Government is promoting national digital transformation more and more strongly with the requirement to go into practice and practice, the management of foreign workers still faces many difficulties due to the lack of interconnected data systems. Currently, work permit management software in many localities has not been upgraded to integrate new legal documents, leading to the inability to connect data between the central and local governments. In addition, the web portal of the Employment Department is often interrupted, affecting the provision of online public services.

The Ministry of Home Affairs has also recently proposed many times to upgrade public service software, build an interconnection system to manage foreign workers more effectively. This not only helps improve the quality of public services but also supports close monitoring of cases of foreign workers working in the wrong location, location, or sponsoring enterprise. Serving the state's inspection and supervision activities in depth and efficiency, creating a fair business environment for all economic sectors participating in investment and business activities in Vietnam.

3.2. Conversion to electronic work permits

The current issuance of work permits with paper blanks causes many inadequacies, such as requiring leaders to sign directly, slowing down the progress of processing documents, especially when the number of documents is large. In the report to the Government to amend the regulations on work permits, the Ministry of Home Affairs proposes to switch to issuing electronic work permits and applying digital signatures, in line with the trend of digital transformation and requiring 80% of online public services to reach the full level by 2025. This proposal not only minimizes administrative costs but also increases transparency and convenience for businesses and employees. At the same time, this conversion helps to synchronize the entire process of licensing work permits, both the licensing documents as well as the results of the procedures are papers in the form of digitization.

4. Inadequacies in the practice of managing foreign workers

4.1. Limitations in supervision and post-inspection

The post-inspection work for foreign workers is not comprehensive, due to the lack of interconnection monitoring tools and the limited number of labor inspectors (about 400 people nationwide). The situation of enterprises not complying with regulations, such as not signing labor contracts or not returning permits when stopping using foreign workers, still occurs. In addition, some individuals take advantage of high technology to forge records, making it difficult for management.

The Ministry of Home Affairs proposes to strengthen the force of inspectors, especially in industrial parks, and at the same time build a labor database associated with the National Population Database. This will help detect and promptly handle violations, ensuring stricter management of foreign workers.

4.2. Request for adjustment of expert conditions and health documents

The current regulations on conditions for expert certification and health certificates also cause some inadequacies. For example, Circular No. 32/2023/TT-BYT does not stipulate the conclusion of "sufficient health" in the health certificate, while some countries use family doctors to monitor health, resulting in a health certificate without confirmation from a competent health authority. The Ministry of Home Affairs proposes to amend regulations to accept 12-month health certificates from both domestic and foreign agencies, and at the same time add cases of experts in the field of high technology or friendship relations to create more favorable conditions.

The proposals to adjust the regulations on foreign workers of the Ministry of Home Affairs come from the need to adapt to the new socio-economic context, in which Vietnam is promoting industrialization, digital transformation, and international integration. The main reasons include: the need to attract high-quality human resources in advanced technology industries, the need for administrative reform and management decentralization, the promotion of the application of information technology, and the overcoming of limitations in the management of foreign workers. These amendments not only help Vietnam make the most of foreign labor resources but also strengthen its position in international competition, towards the goal of sustainable development and modernization of the country, entering a new era as desired by the whole nation.