VCI Legal – 22 January 2026

The Government of Vietnam has issued Decree No. 325/2025/ND-CP dated 18 December 2025 on labor, employment, and social security in International Financial Centers in Vietnam. The Decree took effect on 18 December 2025 and provides detailed guidance for certain employment-related provisions of Resolution No. 222/2025/QH15 on Vietnam’s International Financial Center framework.

Decree 325 is important for investors, financial institutions, professional service providers, and other eligible participants in Vietnam’s International Financial Centers because it creates a more flexible labor regime, particularly for the recruitment and work authorization of foreign employees.

Decree 325 applies to Vietnamese employees and foreign employees working for covered employers in the International Financial Centers. Covered employers include members of the International Financial Center, the International Financial Center Executive Agency, the supervisory agency, and the dispute resolution body within the International Financial Center framework, in particular:

Key changes for employers

1. No cap on the ratio of foreign employees

Covered employers may proactively recruit foreign employees according to business needs and are not subject to a foreign-labor ratio cap. This is one of the clearest pro-investment features of the Decree. The rule is set out in Article 3.2.

However, the Decree does not create a free-for-all. Recruitment of both Vietnamese and foreign employees must not affect national security, as required under Article 3.3.

2. Broader work permit exemption categories

Foreign employees may be exempt from work permit requirements if they fall within one of the categories in Article 5.1, including persons covered by Points a and b Clause 1 Article 20 of Resolution 222/2025/QH15, persons exempt under Decree 219/2025/ND-CP, and persons meeting professional standards prescribed by the relevant IFC Executive Agency.

For certain exempt employees under Point a Clause 1 Article 5, the employer does not need to apply for a work permit exemption confirmation, but must notify the relevant IFC Executive Agency at least three working days before the employee is expected to start work in Vietnam. This is required under Article 6.2.

3. Three-working-day processing for key work authorization procedures

Applications for issuance or extension of a work permit exemption confirmation must be processed within three working days from receipt of a complete dossier under Article 6.1. Applications for issuance or extension of a work permit are also subject to a three-working-day processing timeline under Article 8.2.

This is a major practical improvement for employers that need to mobilize senior executives, specialists and financial-sector professionals quickly.

4. Work permits and exemption confirmations may be valid for up to 10 years

The Decree allows a work permit exemption confirmation to be valid for up to 10 years under Article 7. A work permit may also be valid for up to 10 years under Article 9.

This is one of the most important changes for long-term workforce planning, especially for foreign financial institutions, fund managers, fintech businesses and professional service providers operating within the IFC structure.

5. No foreign-labor demand explanation for work permit issuance or extension

For work permit issuance or extension, covered employers are not required to submit a foreign-labor demand explanation and are not required to announce recruitment of Vietnamese employees for the positions intended for foreign employees (Article 8.1).

This removes two procedural burdens that commonly slow down foreign hiring in Vietnam.

Social insurance and unemployment insurance

Vietnamese employees working in the International Financial Centers continue to participate in social insurance under Vietnam’s general social insurance laws. Foreign employees who are subject to compulsory social insurance under the 2024 Law on Social Insurance must participate accordingly. These rules are set out in Article 10.1 and Article 10.2.

The Decree also introduces an optional mechanism for certain foreign workers who are not otherwise subject to compulsory social insurance. Such foreign workers may participate in compulsory social insurance upon request. Where they do not have a labor contract or salary, Article 10.4 allows them to choose a salary base for contributions, from the reference level up to 20 times the reference level.

Foreign workers may also participate in unemployment insurance upon request, with participation and benefit settlement handled in the same manner as for Vietnamese employees. 

Employer reporting obligations

Employers must comply with the Decree’s labor, employment and social security rules, ensure that recruitment and use of Vietnamese and foreign employees protects national security and social safety, and report annually before 5 December or on an ad hoc basis to the IFC Executive Agency. These obligations are set out in Article 15.4.

Why this matters

Decree 325 is not just another labor regulation. It is part of Vietnam’s attempt to make its International Financial Centers operationally credible for cross-border financial activity. Talent mobility is central to that strategy.

For IFC employers, the immediate compliance priorities are clear: identify whether the employer falls within Article 2, classify foreign personnel under Article 5, prepare work permit or exemption procedures under Articles 6 and 8, and update internal reporting and social insurance processes under Articles 10, 11 and 15.

(This publication is for general information only and does not constitute legal advice.)

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