Decree 102/2013 takes effect from 1 November 2013 and imposes stricter rules on foreign employees working in Vietnam. In particular,

• In addition to a work permit, Decree 102/2013 requires an additional approval from the Chairman of the provincial People’s Committee before recruiting a foreign employee. Under earlier regulations, a work permit would suffice.
• A foreigner who is exempted from obtaining work permits must obtain a written confirmation from the local labour authority that such foreigner satisfies the conditions for exemptions. Under earlier regulations, the employer only need to make a report to the local authority about a foreigner exempted from obtaining work permits.
• A work permit is now only valid for two years not three years as under earlier regulations.
• In order to qualify as an expert, a foreigner now must have both a bachelor degree and at least 5 year of experience. Under earlier regulation, either condition would suffice.
• Foreign volunteers and persons in charge of establishing a commercial presence are required to obtain work permit. This provision seems to suggest that before obtaining a licence to set up a commercial presence (e.g. a branch or a subsidiary), a foreign investor needs to apply for work permits for their officers first.