VIETNAM – Clarification on Assignment Letters

, 17/01/2017

The Vietnamese authorities have provided further clarification on work permit procedures, after issuing Circular 40 last month, which provided guidelines on the implementation of Decree 11.

Among the key points is a new rule that an assignment letter supporting an intra-company transfer must be issued by a shareholder or an owner of the Vietnamese host company.

Assignment Letters

Assignment letters for intra-company transferees must now be issued by a shareholder or owner of the Vietnamese host company. Previously, assignment letters could be issued by human resource offices not necessarily related to the owners or shareholders of the host company.

Quarterly Reporting

The immigration authorities have clarified that the new quarterly foreign labour use report must include any foreign experts or managers who are staying in Vietnam for 30 day or less. Penalties for failing to submit quarterly reports will range from one to two million dong.

Action Items

• Vietnamese companies hosting foreign nationals on assignment in Vietnam must ensure that assignment letters are signed by a shareholder or owner of the company.
• Vietnamese host companies should also ensure that all foreign labour use is reported quarterly and that all