Work Permit Exemptions for Intra-Corporate Transferees accessing to Vietnam

On 28th December 2016, the Ministry of Industry and Trade promulgated Circular No. 35/2016/TT-BCT on definition of intra-corporate transferees, who work for foreign enterprises operating in 11 service sectors as specified in Schedule of Specific Commitments in Services between Vietnam and the World Trade Organization (“WTO”), are eligible for work permit exemption (“Circular 35”).

Accordingly, intra-corporate transferees (“ICTs”) who are eligible for work permit (“WP”) exemption are: (i) managers, (ii) executives, (iii) professionals, and (iv) technicians.

ICTs are eligible for WP exemptions in cases of (i) foreign enterprises already established commercial presence in the territory of Vietnam; and (ii) ICTs have been previously employed by foreign enterprises for at least 12 months in prior to the transference to such commercial presence.

Nonetheless, only commercial presence of foreign enterprises operating in 11 service sectors, as prescribed in Circular 35, shall eligible for WP exemption. Such as:

a) managers, executives, professionals work for foreign enterprises whose operation in 11 service sectors as prescribed in Annex I of Circular 35;

b) technicians work for foreign enterprises whose operation in 11 service sectors as prescribed in in Annex II of Circular 35.

To be eligible for WP exemption, ICTs need to provide the following documents:

a) Written documents appointing ICTs to work for commercial presence of foreign enterprises in Vietnam, comprising the following contents: (i) position, (ii) title, and (iii) working period. Such documents shall be issued by foreign enterprises; and

b) Written documents certifying ICTs as executives in foreign enterprises, with the following contents: (i) name of certifying enterprises; (ii) personal information of professionals such as full name, date of birth, nationality; and (iii) professionals’ major consistent with the position that foreign workers are expected to work in Vietnam. Such documents shall be issued by foreign enterprises;

or

Written documents certifying that ICTs work as technicians in foreign enterprises, and that ICTs have been trained for at least 01 year in technical or other specialties; and written documents certifying that ICTs have at least 3 years working experience in majors consistent with the position that the foreign workers are expected to work in Vietnam; and

c) Written documents certifying that ICTs have been previously employed by foreign enterprises for at least 12 months in prior to such transference, one of which shall be: (i) documents confirming that ICTs were employed by foreign enterprises; (ii) labor contracts; (iii) ICTs hiring decisions; or (iv) tax clearance certificates or certificates of insurance of ICTs; and

d) Written documents certifying that commercial presence of foreign enterprises in the territory of Vietnam has operated in 11 service sectors as prescribed in Annexes of Circular 35, one of which shall be: (i) Enterprise Registration Certificate or equivalents; (ii) Operation Registration Certificate of Representative Office; or (iii) Operation Registration Certificate of Branch. These documents shall be granted by competent authorities of Vietnam.

Circular 35 took effect officially from 10th February 2017.