Enterprises wishing to recruit foreign workers must prove their demand for labor in accordance with the provisions of the Labor Code 2019 and Decree No. 219/2025/ND-CP. Effective from August 7, 2025, the explanation procedure for labor demand has been integrated directly into the work permit application file instead of being conducted as a separate step. The following article provides guidance on the conditions, application dossiers, procedures for explaining the demand for foreign labor, and the exempted cases under the latest regulations.
LEGAL BASIS
- The Labor Code 2019;
- Decree No. 219/2025/ND-CP dated August 7, 2025 of the Government on foreign workers working in Vietnam.
I. LEGAL GROUNDS FOR THE OBLIGATION TO PROVE FOREIGN LABOR DEMAND
1.1. General Principle: Recruit foreign labor only when Vietnamese labor cannot meet the requirements
According to Clause 1, Article 152 of the Labor Code 2019, enterprises, agencies, organizations, individuals, and contractors are only permitted to recruit foreign workers for positions as managers, executives, experts, and technical workers that Vietnamese workers cannot yet fulfill according to production and business demands.
Thus, the Labor Code 2019 establishes a foundational principle prioritizing the utilization of the domestic workforce. Enterprises are only permitted to recruit foreign workers when they can prove that Vietnamese human resources truly cannot meet the requirements of the vacancy. This means that the demand to use foreign labor is not an automatic right, but requires the enterprise to fulfill a specific obligation to explain the demand to competent state authorities.
1.2. The Enterprise’s Obligation to Explain the Labor Demand
Clause 2, Article 152 of the Labor Code 2019 clearly states that prior to recruiting foreign workers to work in Vietnam, enterprises, agencies, organizations, and individuals must explain their demand for labor and obtain written approval from the competent state authority.
This regulation establishes the legal obligation of enterprises to prove their demand for foreign labor. The content of the explanation must clearly state the reasons why the job position could not be filled by a suitable Vietnamese candidate.
II. CONTENT OF THE EXPLANATION FOR FOREIGN LABOR DEMAND
2.1. New Template for Explaining Labor Demand Under Decree No. 219/2025/ND-CP
Under the new regulations, enterprises use Form No. 03 of the Appendix issued with Decree No. 219/2025/ND-CP, full name: “Document explaining the demand for foreign workers and application for issuance/re-issuance/extension of work permit”.
This form is designed as an integrated template, combining the content of explaining the demand for foreign labor and the request for work permit issuance into a single document.
2.2. Recruitment Notification for Vietnamese Workers Prior to Document Submission
According to Decree No. 219/2025/ND-CP, for cases requiring an explanation of foreign labor demand, enterprises must post a recruitment announcement for the positions intended for foreigners on the web portal of the provincial labor management authority or other lawful channels at least 05 days prior to the date of application submission.
This is a crucial step to prove that the enterprise has made efforts to find domestic candidates but was unsuccessful – a core requirement for obtaining approval for foreign labor demand. To complete the dossier, enterprises should prepare a summary of the recruitment process, including the number of applications received, the number of candidates interviewed, and the specific reasons why a suitable candidate could not be selected.
2.3. Cases Subject to and Exempt from Explaining Labor Demand
According to Decree No. 219/2025/ND-CP, the obligation to explain the demand for foreign labor and post recruitment notifications for Vietnamese workers only applies when issuing or extending a work permit for:
- Individuals working under a labor contract;
- Individuals working for foreign diplomatic missions or international organizations;
- Individuals participating in the execution of projects or bidding packages in Vietnam.
Conversely, certain forms of foreign labor do not require the implementation of Vietnamese labor recruitment notification and demand explanation reporting procedures, such as intra-company transfers. Enterprises need to clearly determine the working form of the foreign worker before preparing the dossier to avoid submitting missing or redundant documents.
2.4. Dossier to Request Work Permit Issuance
According to Article 18 of Decree No. 219/2025/ND-CP, the dossier requesting a work permit for a foreign worker working under a labor contract includes:
- The document explaining the demand for foreign labor and requesting work permit issuance according to Form No. 03;
- A health certificate (issued no more than 12 months prior to the date of submission);
- A criminal record certificate (issued no more than 06 months prior to the date of submission);
- 02 color photos, size 4cm x 6cm, with a white background;
- A valid passport;
- Documents proving the appropriate form of employment (e.g., labor contract, assignment document, etc.);
- Documents proving that the foreign worker meets the eligibility requirements for the job position as a manager, chief executive officer, expert, or technical worker as prescribed.
2.5. Processing Timeframe Under the New Regulations
Decree No. 219/2025/ND-CP clearly stipulates the approval processing timeframe as follows:
- In case of demand approval and work permit issuance: Within 10 working days from the date of receiving a full and valid dossier.
- In case of disapproval of the foreign labor demand or non-issuance of the work permit: Within 03 working days from the date of receiving a full dossier, the competent authority must provide a written response and state the reasons.
III. CASES EXEMPT FROM WORK PERMITS – NO EXPLANATION OF DEMAND REQUIRED
According to Article 154 of the Labor Code 2019 and Decree No. 219/2025/ND-CP, there are 15 cases where foreign workers are exempt from work permits, which means enterprises are also exempt from performing the labor demand explanation procedure. Notably, Decree No. 219/2025/ND-CP has expanded significantly compared to previous regulations, specifically adding several cases such as:
- Foreign workers certified by ministries, ministerial-level agencies, or provincial People’s Committees to enter Vietnam to work in priority sectors, including: finance, science, technology, innovation, national digital transformation, and priority socio-economic development areas;
- Managers, executives, experts, and technical workers entering Vietnam to work for a total duration of under 90 days within 01 calendar year (calculated from January 1 to December 31) – increased from under 30 days under the old regulation;
- Owners or capital-contributing members of a limited liability company with a capital contribution value of 3 billion VND or more; Chairmen of the Board of Directors or members of the Board of Directors of a joint-stock company with a capital contribution value of 3 billion VND or more.
However, for cases exempt from work permits, enterprises must still carry out the procedure to apply for a “Certificate of Work Permit Exemption” from the competent authority in accordance with Decree No. 219/2025/ND-CP.
CONCLUSION
Proving the demand for foreign labor is a mandatory legal obligation under Article 152 of the Labor Code 2019, intended to protect job opportunities for domestic workers. Since August 7, 2025, Decree No. 219/2025/ND-CP has significantly reformed this process by streamlining it—integrating the explanation of foreign labor demand into a single document alongside the work permit application dossier, thereby shortening the processing time to 10 working days.
Enterprises must proactively grasp the new regulations on explaining foreign labor demand, utilize the correct forms in compliance with Decree No. 219/2025/ND-CP, and execute the recruitment notification for Vietnamese workers at least 05 days prior to submitting the dossier to ensure validity and avoid legal risks during the recruitment of foreign human resources.
