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Case 1: Foreign workers who are paid salaries in Vietnam.

The Ministry of Home Affairs has clarified that the 2019 Labor Code defines labor relations as social relationships arising from the hiring, employment, and remuneration of workers by employers, as well as the interactions between representative organizations and relevant state authorities. These labor relations encompass both individual and collective relationships.

A labor contract is an agreement between the employee and the employer on paid work, salaries, working conditions, and the rights and obligations of each party.

A labor contract is considered to exist when two parties agree to an arrangement, regardless of the title, that involves compensated work, salary, and managerial oversight from one party.

One of the main contents of a labor contract is the salary level according to the job or title, the form and time limit for payment, salary allowances, and other additional amounts.

Salary is the amount of money that the employer pays the employee according to the agreement to perform the job, including the salary level according to the job or title, salary allowances, and other additional amounts.

Foreign employees in Vietnam are required to participate in mandatory SI if they have a fixed-term employment contract of 12 months or more. The regulation applies to those working for employers in Vietnam, with an exception for those transferred within a company under the laws governing foreign employees in Vietnam.

In addition, Government Decree no. 219/2025/ND-CP, which regulates foreign workers in Vietnam, stipulates that, after a foreign worker is granted a work permit, employers and foreign employees must enter into written labor contracts in accordance with Vietnamese labor law before the anticipated start date.

If a foreign worker is paid a salary in Vietnam, the employer must apply for a work permit for the foreign worker before the expected working date, sign a labor contract in accordance with law on employment, and participate in SI according to Law on SI.

Case 2: Foreign intra-corporate transferees

The Ministry of Home Affairs has announced that, under Decree 219/2025/ND-CP, foreign workers transferred within a company are exempt from work permit requirements if they meet specific conditions including: having been employed by the foreign enterprise for at least 12 consecutive months prior to their assignment in Vietnam; holding positions as managers, executive directors, experts, or technical workers; and being transferred temporarily within a multinational corporation that has established a commercial presence in Vietnam, operating within one of the 11 service sectors outlined in Vietnam's World Trade Organization (WTO) service commitments.

In this case, the enterprise which does not issue a work permit must request a certificate of exemption from work permit requirements as stipulated in Article 8 of Decree No. 219/2025/ND-CP. The application must include documents proving the position and the assignment to work in Vietnam

Foreign workers moving within the enterprise are not subject to mandatory SI, according to the provisions of the 2024 Law on SI.