For a foreign nongovernmental organization (NGO) or international organization in Vietnam, hiring local employees involves more than agreeing on salary and a start date. The organization needs to know which recruitment and employee-management procedures apply to its legal status.
Decree 371/2026/ND-CP, which governs how certain foreign organizations and individuals hire and manage Vietnamese staff, was issued on September 25, 2026. It takes effect on November 15, 2026. The special procedures apply to the covered employers, rather than to all foreign-invested companies.
Why Vietnam Issued Decree 371
Decree 152 originally covered both foreign workers and Vietnamese employees of foreign organizations. The provision on employing foreign workers in Vietnam were already replaced by Decree 219/2025/ND-CP in August 2025. Decree 371 now replaces the remaining Vietnamese-employee provisions with a separate framework. It updates recruitment notices and employee records, and sets out the duties of employers, workers and the designated organization responsible for employee management (the management body).
The decree aims to protect Vietnamese employees, support compliance with Vietnamese law and help covered foreign organizations operate effectively. For a country director, the main change is how recruitment and employment records are handled. Direct hiring was already permitted. Decree 371 revises the process employers follow when recruiting locally.
Quick Reference
From November 15, 2026, registered foreign NGOs and specified international organizations will follow revised procedures when hiring Vietnamese employees. Direct recruitment remains allowed, with notice to the management body and public vacancy advertising. Commercial and other specified sector representative offices will instead follow the Labor Code and related laws.
After contract signing, the employer and employee each have filings due within 10 working days. Employees must complete the required legal-awareness program within six months of signing. Separate notices apply to labor-leasing services and employment exits. Annual employer reports remain due before December 15. Missing hire or exit notices and reporting violations can bring fines under Decree 283/2026/ND-CP. Employers should keep filing records with the employment documents and check proposed changes or exits before announcing them.
Hiring and Employment Issues Under Decree 371
Confirm That Your Organization Is Covered
The decree covers registered foreign NGOs and specified international bodies, including United Nations organizations, intergovernmental organizations, and regional or subregional organizations permitted to operate in Vietnam. Diplomatic and consular missions, representative offices of foreign-government organizations, and resident foreign news and broadcasting offices are also covered.
An organization should check its Vietnamese registration or permission to operate, rather than rely on the word “international” in its name. The decree also covers foreign individuals working at the listed organizations who themselves employ Vietnamese workers. It does not apply to every foreign resident simply because that person hires someone locally.
Commercial representative offices are subject to a different change. They and the other specified sector representative offices were expressly covered by the earlier special regime. From November 15, they leave that procedure and follow the Labor Code and related legislation. Their ordinary employment duties continue. An office should review its hiring process and confirm how any recruitment or filing already underway will be handled.
Ordinary foreign-invested companies are outside this special framework. Confirming the employer category is the starting point for a broader review of employment law in Vietnam. An NGO should not copy a commercial company’s recruitment process without checking the differences.
Direct Hiring Still Requires Notice and Public Advertising
A covered organization can select and hire Vietnamese employees itself, or ask the management body for recruitment support. When it needs to recruit, it must send the management body a written notice identifying the positions and number of employees needed. The notice may be submitted in person, by post, or electronically through the management body’s official email address.
At the same time, recruitment information must be made public. The organization may use the National Employment Exchange, another lawful employment portal, or its own official website. The national exchange is one option, not the only permitted place to advertise.
Even when a candidate is recommended by an existing employee or approved by headquarters, the organization still needs to complete the notice and advertising steps. Keep evidence of both. Before opening the vacancy, identify the management body designated under the Ministry of Foreign Affairs framework and confirm where to send the notice.
Employer and Employee Filings Run in Parallel
Within 10 working days after signing the employment contract, the employer must notify the management body of the hire. The notice identifies the employee, personal identification number, position and planned start of work. The period runs from contract signing, not from the first working day or the first payroll payment.
The employee has a separate duty to submit the initial employee-management documents within the same 10-working-day period. The employer must help the employee complete this process. Sending the employer’s notice does not, by itself, satisfy the worker’s document-submission duty.
Once the management body has received the complete employer notice and employee documents, it has 10 working days to confirm that it has accepted the employee for management. Keep that confirmation with the personnel record. Assign one person to coordinate both submissions and keep evidence of delivery. The information in the documents should be consistent regarding the position, contract date and start date, so the organization can explain the record if a question arises later.
Onboarding Includes a Legal-Awareness Program
The initial employee-management documents consist of the prescribed personal information form and a copy of the signed employment contract. The record also includes a certificate showing completion of a program explaining Vietnamese state policies and laws. That certificate follows completion of the program; it is not required with the initial submission.
The management body organizes the program, which may be delivered in person or online. The employee must complete it within six months of signing the employment contract. The employer must enable participation. Include the program in onboarding and help the employee arrange attendance.
The decree leaves the program’s content, duration and format to further instructions from the Minister of Foreign Affairs. Confirm the current arrangements with the management body and keep records of the assistance offered to employees. An incomplete file or failure to complete the program does not, by itself, give the employer an automatic right to dismiss the employee.
Employees must update their management records when personal information changes or the management body requests an update. A simple reminder process can help keep the official file and internal personnel record consistent. Because these records contain personal information, Access and sharing should also be considered as part of the organization’s Vietnam data compliance review, especially where headquarters or a regional HR system receives the information.
The Special Procedure Does Not Replace Employment Obligations
The employer still needs to comply with Vietnamese employment law and the signed contract. Decree 371 requires covered organizations to comply with both. Check salary, working time, leave and any applicable insurance obligations alongside the administrative filings.
For an NGO, the funding agreement and the employment contract may operate on different timetables. A donor budget ending does not, by itself, answer whether an employee’s contract may lawfully be ended. The contract term and any proposed changes should be considered before the organization promises employment for the full life of a project.
It is important to check that the employee’s actual role and pay follow the agreed terms and that the records reflect any agreed changes. Record performance feedback and any concerns raised by the employee when they arise. If headquarters later requests a role change or staff reduction, the local team needs to check the lawful grounds and process before announcing the decision. A global policy or donor instruction still needs to be assessed under Vietnamese employment law.
The organization should also distinguish a required submission to the management body from wider circulation of personnel information. Filing under Decree 371 does not give unrestricted permission to share employee records with donors or overseas offices. Separate personal data protection requirements and penalties remain relevant. Identify which information is needed for each purpose and who needs access.
Using a Staffing Provider Does Not Remove the Employer’s Notice Duty
Some organizations use labor-leasing arrangements, where a provider employs workers and supplies them to work under the receiving organization’s direction. Decree 371 places responsibilities on both the receiving organization and the provider. These should be distinguished from a recruitment agency that only introduces a candidate whom the organization then employs directly.
A covered organization using labor-leasing services must notify the management body within seven working days after it starts using the services. The provider must send its list of Vietnamese workers within 10 working days after supplying them to the organization. The provider also has an annual reporting obligation.
Before starting the arrangement, the organization should confirm whether it is legally considered labor leasing and whether the proposed service and roles comply with the rules then in force. The agreement should identify who prepares each notice, supplies employee details and keeps the submission evidence. Outsourcing payroll or recruitment administration should not be treated as proof that all employer responsibilities have moved to the provider.
Prepare for Employment Exits and the Annual Report
When an employment contract ends, the covered employer must notify the management body within 10 working days and state the reason. The management body then has three working days after receiving the notice to confirm the end of employee management and return the management file to the employee.
This is an administrative step after termination. It does not replace the legal grounds, notice, procedure or employee payments that may be required for the termination itself. A project closure should therefore be planned as an employment decision as well as an operational decision. The personnel record should explain why employment ended and what steps were completed.
Employers must also submit the prescribed annual information on recruitment and employment before December 15. Annual reporting is not new; it existed under Decree 152. With the new decree taking effect in November, organizations should use the prescribed form and confirm the first reporting arrangements with the management body.
Managing Fines and Employee Disputes
Fines for missing hire or exit notices and for reporting violations are set by Decree 283/2026/ND-CP. These specific penalties apply from November 15, 2026, the same day Decree 371 takes effect.
For covered organizations, failure to give the required written hire or exit notice may result in a fine of VND 10–20 million. Failure to submit a periodic report, late submission, or submission of an incorrect report may result in a fine of VND 2–6 million. The actual fine depends on the violation and applicable circumstances. Authorities can also require the notice or report to be submitted.
Employee disputes can involve costs beyond these fines. An employer that ends a contract unlawfully may have to take the employee back, pay lost wages and insurance contributions, and pay compensation. Filing the exit notice does not make the termination lawful. Check the reason for ending employment and the required process before telling the employee.
Frequently Asked Questions
Q1: What changes for a foreign company’s commercial representative office?
A commercial representative office should update its hiring process for November 15. It will no longer use Decree 152’s special Vietnamese-employee procedure and will follow the Labor Code and related laws. Its contract, pay, insurance and other applicable employment duties continue. If recruitment or a filing is already underway, confirm how to complete it during the changeover.
Q2: Must existing employees sign new contracts when the decree takes effect?
The decree does not itself require every existing employee to sign a replacement contract. Organizations should check their current files and confirm how existing records and recruitment in progress will be handled. They should also ask how the legal-awareness program will be applied to existing employees. Do not assume a fresh six-month period begins for everyone on November 15.
Q3: Does this decree cover the organization’s expatriate employees?
No. Work permits and exemption confirmations for foreign staff are governed by Decree 219/2025/ND-CP, subject to any relevant treaty arrangements. If a foreign mission or organization hires a foreigner under a labor contract, it must first advertise the role to Vietnamese candidates where required for the relevant work-permit application. This is separate from the vacancy advertising under Decree 371. Check the individual’s status and the required procedure; working for an international organization does not automatically mean an exemption applies.
The regulation on management of foreigners under Decree 286 explains broader government coordination. It does not replace the work-permit framework or the separate rules on immigration and residence.
Q4: Can the organization advertise only on its own website?
Yes, the decree allows publication on the organization’s official website as an alternative to the national exchange or another lawful employment portal. The written notice to the management body is still required. Keep the advertisement and submission evidence together so the recruitment process can be explained later.
Conclusion
Before November 15, 2026, a covered NGO or international organization should review how it will handle its next hire. Identify the management body, prepare the vacancy notice and advertisement, and decide who will coordinate the employer and employee submissions. Include the program, annual reporting and exit notices in the employment calendar. Keep evidence of these steps with the employment documents. If a proposed change or exit may lead to a dispute, seek advice before announcing it. These preparations help the employer avoid missed steps and explain its decisions if a concern arises later.
About the Author
Hanh Pham is a Legal Research Specialist at ANT Lawyers with more than 10 years of experience, supporting legal teams through regulatory research, authority liaison, documentation review, and knowledge development. She has been trained in corporate, civil law and related area. The article has been reviewed by Tuan Nguyen, Managing Partner, ANT Lawyers; member of the Hanoi Bar Association and Vietnam Bar Association.
About ANT Lawyers, a Law Firm in Vietnam
Founded in 2012, ANT Lawyers is a Vietnam law firm with offices in Hanoi, Ho Chi Minh City and Da Nang. Our employment lawyers advise on hiring, work permits, internal labour regulations and termination disputes in Vietnam. We combine legal analysis with practical understanding of Vietnam’s regulatory environment and local administrative practice.
General Disclaimer
This article is for general informational purposes only, does not constitute legal advice, and does not create a lawyer-client relationship. Vietnamese laws, regulations and administrative practice change over time, and the correct position for any matter depends on its specific facts and the rules in force when action is taken. Verify the current position before relying on anything stated here, and consult qualified counsel on your specific situation.
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