Lê Hữu Tiến – Paralegal
In the context where Viet Nam has officially opened two (02) International Financial Centers (“IFC”) in Ho Chi Minh City and Da Nang City, with the objective of becoming a competitive destination in the region and globally for capital flows and high-quality human resources, and in light of the task of completing the legal framework serving the implementation and practical operation phase of the IFC, the Government has promptly promulgated Decree No. 325/2025/ND-CP dated 18 December 2025, providing detailed regulations on labor, employment and social security within the IFC (“Decree 325”). Accordingly, the recruitment and management mechanism for labor in the IFC is designed with several notable features as follows:
1. An open and flexible labor recruitment mechanism
One of the notable highlights of Decree 325 is that enterprises and organizations operating within the IFC are granted autonomy to recruit both Vietnamese and foreign employees in accordance with their operational needs, without being subject to any cap on the proportion of foreign employees.
This approach reflects a more open and liberal labor policy toward foreign workers, aiming to facilitate enterprises and organizations within the IFC in accessing human resources that meet the high professional requirements of the financial, banking, investment and related service sectors.
2. Simplified licensing procedures and management of foreign employees
Decree 325 continues to demonstrate a reform-oriented approach by streamlining procedures related to work permits for foreign employees working within the IFC. Specifically, employers are no longer required to carry out procedures for notifying the recruitment of Vietnamese employees prior to recruiting foreign employees. At the same time, the processing time has been shortened to three (03) working days instead of the usual ten (10) working days.
In addition, the authority to receive and process procedures related to the issuance of work permits, as well as confirmations of exemption from work permit requirements, is delegated to the Management Department of IFC directly responsible for the administration of the IFC.
This approach significantly shortens processing timelines and creates favorable conditions for the attraction and rapid deployment of international human resources
3. Extended working term
Another incentive under Decree 325 that has been highly appreciated by enterprises is that the working term of foreign employees may be extended for up to ten (10) years. This allows both foreign employees and employers to achieve long-term workforce stability and reduces the frequency of repeated licensing procedures.
4. A New, more integrated approach to social security
In parallel with expanding autonomy in labor recruitment and management, Decree 325 continues to place significant emphasis on social security policies, adopting a more flexible approach compared to the general legal framework.
Accordingly, both Vietnamese and foreign employees working within the IFC are entitled to participate in social insurance, health insurance, and unemployment insurance in accordance with applicable law. For foreign employees who are not subject to compulsory social insurance participation, the Decree allows such employees to choose an appropriate form of participation, including compulsory or voluntary social insurance, depending on the specific circumstances.
Notably, Decree 325 recognizes the possibility of exemption from or reduction of compulsory social insurance obligations in Viet Nam for foreign employees who have already participated in equivalent social security schemes abroad. This provision reflects efforts to harmonize the domestic social security system with international practices, while avoiding the issue of “double social insurance contributions” for foreign employees.
Overall, Decree 325 establishes a labor legal framework that is distinctive, flexible, and internationally integrated, aligning with the operational requirements of the IFC in Viet Nam. The Decree is designed as a specialized legal mechanism, selectively separated from the general labor law framework, to meet the need for flexible operation of the IFC, while still ensuring fundamental principles of state management and social security. The relaxation of barriers to foreign labor recruitment, the simplification of administrative procedures, and the adjustment of social security policies toward greater flexibility not only enhance the attractiveness of the IFC to investors and international experts, but also demonstrate Viet Nam’s strong commitment to building a modern and competitive investment and business environment.
Here is our article about NOTABLE FEATURES OF LABOR POLICIES IN INTERNATIONAL FINANCIAL CENTER IN VIETNAM. If you are interested or require legal support regarding electronic identification procedures for enterprises, please visit our DIMAC Website and explore the News Category to stay updated with the latest legal insights and shared market experiences.
