New Authority in Ho Chi Minh City Alters Vietnam Work Permit Processes: What Your Business Needs to Know

Effective July 10, 2024, Ho Chi Minh City’s People’s Committee and its affiliated agencies have been granted the authority to manage various labor administrative matters. This includes job position approvals, work permit exemptions, new work permits, re-issuance, renewals, and de-registrations for entities registered in HCMC.

Streamlined Process and Faster Approvals

Previously handled by the Ministry of Labour (MOLISA), these various permit processing tasks will now be managed by the HCMC Department of Labour, Invalids and Social Affairs (DOLISA). This shift is anticipated to significantly streamline the application process, resulting in faster approval times. DOLISA's localized management is expected to reduce bureaucratic delays and improve efficiency.

Although the change in authority officially took place on July 10, it could take up to four weeks for HCMC DOLISA to begin accepting applications, after the agency has received formal instructions from the HCMC People’s Committee.

Why Vietnamese Work Permit Changes Matter for Businesses

• Efficiency Improvements: With HCMC DOLISA overseeing permit applications, businesses with a presence in Vietnam can expect a more streamlined process, reducing the time required to obtain necessary work permits and approvals.
• Localized Management: Handling work authorizations at the provincial level – rather than at the national level of government – allows for a more responsive approach, addressing specific regional needs and conditions.
• Better Business Operations: Faster Vietnamese work permit processing times mean businesses can onboard international talent more swiftly, minimizing disruptions and accelerating project timelines.

Anticipated Systematic Improvements

• Simplified Procedures: As alluded to earlier in this guide, DOLISA is known for more streamlined procedures compared to MOLISA, potentially leading to fewer administrative hurdles for business owners and HR departments.
• Shortened Processing Times: With this new delegation of authority, businesses are expected experience quicker turnaround times for work authorization applications.

Next Steps

As the transition of work permit authority in Vietnam continues, businesses should stay tuned to VisaHQ for further announcements to ensure a smooth transition.

This change marks a significant improvement in the administrative handling of work permits in Ho Chi Minh City. Businesses operating in the region stand to benefit from a more efficient, localized process, enhancing their ability to manage international workforce requirements effectively.