ND-CP: New Rules for Foreign Organisations

On 25 September 2026, the Government issued Decree 371/2026/ND-CP (“Decree 371”), introducing detailed regulations on the recruitment and management of Vietnamese employees working for foreign organisations and individuals in Vietnam. The Decree was issued pursuant to Article 150.3 of the Labor Code and will take effect on 15 November 2026.

From that date, the corresponding provisions under Decree No. 152/2020/ND-CP, as amended and supplemented by Decree No. 70/2023/ND-CP, will cease to apply.

Decree 371/2026/ND-CP introduces more than changes to recruitment procedures. It establishes a broader employee management framework covering recruitment, employment contracts, employee management during employment, termination and annual reporting.

Foreign organisations currently employing Vietnamese personnel should first determine whether they fall within the scope of Decree 371 before updating their internal HR procedures.

1. Which Foreign Organisations Are Subject to Decree 371?

Under Article 3 of Decree 371/2026/ND-CP, foreign organisations in Vietnam within its scope include:

Foreign diplomatic missions and consular offices;
Representative offices of international organisations within the United Nations system, intergovernmental organisations, and regional or sub-regional organisations;
Representative offices of foreign governmental organisations;
Permanent offices of foreign news agencies, press, radio and television organisations; and
Foreign non-governmental organisations holding registration certificates issued by competent Vietnamese authorities.

Foreign individuals covered by the Decree are foreign nationals working for the above organisations that employ Vietnamese employees.

Accordingly, Decree 371/2026/ND-CP does not establish one uniform regime for every foreign organisation or individual operating in Vietnam. Organisations should first identify their legal form and type of operation before applying the recruitment and employee management procedures under the Decree.

2. Are Representative Offices of Foreign Traders and Organisations Subject to Decree 371?

This is one of the notable changes under Decree 371/2026/ND-CP.

Under Article 14, the recruitment and management of Vietnamese employees working for representative offices in Vietnam of foreign organisations operating in economics, commerce, finance, banking, insurance, science and technology, culture, education, healthcare and foreign legal consultancy are governed by the Labor Code and other relevant laws.

This differs from the previous framework under Decree No. 152/2020/ND-CP. Under Decree 152, representative offices operating in these sectors were included within the category of foreign organisations in Vietnam and were therefore subject to the specific recruitment and employee management regime under that Decree.

From 15 November 2026, representative offices falling within these categories should not automatically continue applying the procedures under Decree 371 merely because they were previously subject to Decree 152.

Before changing their recruitment procedures, representative offices should review their legal form, establishment licence and applicable sector-specific regulations.

3. What Changes Does Decree 371 Introduce to Recruitment?

Under Decree 371/2026/ND-CP, a foreign organisation or individual within the scope of the Decree that intends to recruit Vietnamese employees must notify the competent management authority or organisation of its recruitment needs.

The notification must specify:

The job positions to be recruited; and
The number of employees required.

Recruitment information must also be publicly announced through a legally prescribed channel, including an employment information system or the organisation’s official website.

After completing the notification and publication requirements, the foreign organisation or individual may:

Recruit employees directly; or
Request the competent management authority or organisation to assist with candidate selection and referral.

For organisations that regularly recruit Vietnamese employees, these requirements should be incorporated into their internal recruitment procedures.

Recruiting employees first and completing the notification requirements afterwards may result in the recruitment process not following the sequence required under Decree 371/2026/ND-CP.

4. What Must Organisations Do After Signing an Employment Contract?

Decree 371/2026/ND-CP establishes a separate employee management procedure after a foreign organisation or individual enters into an employment contract with a Vietnamese employee.

Within 10 working days from the date of signing the employment contract, the foreign organisation or individual must notify the competent management authority or organisation.

The notification must include:

The employee’s full name;
Personal identification number;
Job position; and
Commencement date.

The notification may be submitted directly, by post or electronically through the official email address of the competent management authority or organisation.

Within the same 10-working-day period, the Vietnamese employee is also responsible for submitting their management dossier to the competent management authority or organisation.

After receiving the notification and complete employee dossier, the competent management authority or organisation has 10 working days to issue a notice confirming acceptance of the employee for management purposes.

Compared with Decree No. 152/2020/ND-CP, this represents a change in the management process. Under the previous framework, the foreign organisation or individual was required to submit notification within seven working days from the date of signing the employment contract.

5. What Documents Are Included in the Employee Management Dossier?

Under Article 8 of Decree 371/2026/ND-CP, the management dossier of a Vietnamese employee includes:

The employee’s personal information form according to Form No. 01 issued with the Decree;
A copy of the employment contract signed between the Vietnamese employee and the foreign organisation or individual; and
The certificate confirming completion of the programme on dissemination of State policies and laws according to Form No. 02.

At the time the employment contract is first signed, the employee may not yet have obtained the relevant certificate.

In this situation, within 10 working days from signing the employment contract, the employee initially submits the personal information form and a copy of the employment contract. The certificate is subsequently added to the management dossier after the employee completes the programme.

The employee is also responsible for updating the dossier when personal information changes or when requested by the competent management authority or organisation.

Although the obligation to submit the dossier rests with the employee, the foreign organisation or individual must facilitate the employee’s completion of the dossier and relevant management procedures.

6. Employees Must Complete a State Policy and Legal Dissemination Programme

A notable requirement under Decree 371/2026/ND-CP is that Vietnamese employees working for foreign organisations or individuals within its scope must complete a programme on the dissemination of State policies and laws.

The programme must be completed within six months from the date of signing the employment contract.

After completion, the employee will receive a certificate in the prescribed form, which becomes part of the employee management dossier. The foreign organisation or individual is responsible for facilitating the employee’s participation during the employment period.

From an HR management perspective, organisations should track:

The date of signing each employment contract;
The corresponding six-month deadline;
Completion of the programme; and
The relevant certificate in the employee’s personnel records.

7. Is Notification Required When an Employment Contract Is Terminated?

Yes.

Under Decree 371/2026/ND-CP, within 10 working days from the date of termination of an employment contract, the foreign organisation or individual must submit written notification to the competent management authority or organisation, specifying the reason for termination.

Within three working days after receiving the notification, the competent management authority or organisation is responsible for:

Confirming termination of employee management; and
Returning the employee management dossier to the employee.

This notification requirement should therefore be incorporated into internal employee termination procedures alongside other matters such as final payments, social insurance procedures, work handover and return of company property.

8. What About Labour Subleasing Services?

Decree 371/2026/ND-CP also provides requirements where foreign organisations or individuals use employees supplied through labour subleasing enterprises.

Within seven working days from the commencement of the labour subleasing service, the foreign organisation or individual must notify the competent management authority or organisation using Form No. 04 issued with the Decree.

The labour subleasing enterprise must also:

Submit the list of subleased employees within 10 working days from the date of subleasing; and
Submit an annual report on its labour subleasing activities before 15 December each year.

Organisations using subleased labour should therefore review both the general legal requirements for labour subleasing and the specific notification and reporting obligations introduced by Decree 371.

9. Annual Reporting Obligations Under Decree 371

In addition to recruitment and termination procedures, Decree 371/2026/ND-CP introduces an annual reporting obligation.

Before 15 December each year, foreign organisations or individuals within the scope of the Decree must submit the Information Form on the Recruitment and Use of Vietnamese Employees, using Form No. 05, to the competent management authority or organisation.

The report may be submitted:

Directly;
By post; or
Electronically through the official email address of the competent management authority or organisation.

Organisations employing a significant number of Vietnamese personnel should maintain accurate employee information throughout the year to facilitate timely annual reporting.

10. Which Authority Manages Vietnamese Employees?

Under Article 5 of Decree 371/2026/ND-CP, the competent authorities or organisations responsible for managing Vietnamese employees are those decentralised, authorised, assigned, commissioned or selected through procurement by the Ministry of Foreign Affairs to perform this function in accordance with the law.

Foreign organisations transitioning from the previous framework should review the competent receiving authority, particularly where they previously completed procedures with an authority designated under Decree 152.

Correctly identifying the competent receiving authority is important because notifications concerning employment contracts, employee management dossiers, employment termination and annual reports must be submitted to the authority or organisation referred to under Article 5.

11. What Should Foreign Organisations Do Before 15 November 2026?

Decree 371/2026/ND-CP establishes obligations covering the recruitment and management of Vietnamese employees throughout the employment lifecycle.

Before the Decree takes effect, foreign organisations should consider the following steps.

1. Determine Whether Decree 371 Applies

Review the organisation’s legal form and operating licence to determine whether it falls within the categories specified in Article 3.

Particular attention should be given to representative offices operating in economics, commerce, finance, banking, insurance, science and technology, culture, education, healthcare and foreign legal consultancy.

2. Update Recruitment Procedures

Internal recruitment procedures should reflect the requirements to:

Notify recruitment needs; and
Publicly announce recruitment information before hiring employees.

3. Update Employee Commencement Procedures

HR teams should monitor the 10-working-day deadline following execution of an employment contract and assist employees in completing their management dossiers.

4. Monitor Employee Obligations During Employment

Organisations should track the six-month deadline for employees to complete the programme on the dissemination of State policies and laws.

5. Update Termination Procedures

The obligation to notify the competent authority within 10 working days from employment termination should be incorporated into employee departure procedures.

6. Review Labour Subleasing Arrangements

Where an organisation uses labour subleasing services, the relevant notification and reporting requirements should be incorporated into internal procedures.

7. Prepare for Annual Reporting

Employee data should be maintained consistently throughout the year so that the annual report can be prepared before 15 December.

How Can LTS LAW Assist?

LTS LAW assists foreign organisations in Vietnam with reviewing and complying with labour and employment regulations, including:

Determining whether Decree 371/2026/ND-CP applies to a particular type of foreign organisation;
Reviewing and updating recruitment, employee commencement and termination procedures;
Advising on employment contracts and employee management dossiers;
Assisting with statutory notifications and reporting procedures;
Advising on labour subleasing arrangements; and
Conducting broader reviews of labour law compliance in Vietnam.

Conclusion

Decree 371/2026/ND-CP will take effect on 15 November 2026 and introduces a new framework for the recruitment and management of Vietnamese employees working for foreign organisations and individuals within its scope.

Foreign organisations currently employing, or planning to recruit, Vietnamese employees should review their legal status, recruitment procedures and personnel records before the effective date.

The appropriate compliance steps may vary depending on the type of organisation, the legal status of the employer and the specific circumstances of each case.

Disclaimer

This article is provided for general informational and reference purposes only and does not constitute legal advice. The application of relevant laws and procedures may vary depending on the specific documents, circumstances, and countries or territories involved.

For advice tailored to your specific circumstances, please contact LTS LAW FIRM for further consultation and legal assistance.

LTS LAW FIRM

Floor 6, 520 Cach Mang Thang Tam
Nhieu Loc Ward, Ho Chi Minh City, Vietnam
Tel: (+84) 965 000 524
Email: contact@lts.com.vn

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