Tiếng Việt
In the context of the strong national digital transformation taking place in Vietnam, the digitalization of administrative procedures is a top priority set by the State. However, for some Foreign Direct Investment (FDI) enterprises, the intersection between new regulations on electronic identity and foreign labor management has inadvertently created administrative barriers, affecting the business’s operations.
1. Practical Obstacles: Work Permits – Temporary Residence Cards – Organizational Electronic Identity
According to Clause 4, Article 40 of Decree 69/2024/ND-CP, accounts created for organizations by the National Public Service Portal and the administrative procedure resolution information systems at the ministerial and provincial levels can only be used until June 30, 2025. Therefore, from July 1, 2025, organizations must register for an electronic identity account to perform online public services and administrative procedures according to regulations.
Furthermore, according to Decree 219/2025/ND-CP, employers shall carry out the procedures to apply for, reissue, or extend work permits on the National Public Service Portal. Consequently, performing these procedures requires enterprises to log in using the organization’s electronic identity account.
In the practical application of the above regulations, a linked chain of obstacles may arise for some FDI enterprises through the following steps:
- Step 1: To submit documents related to Work Permits on the National Public Service Portal, the enterprise must have a registered and activated organizational electronic identity account.
- Step 2: The registration of the organization’s electronic identity account is performed by the legal representative, the head of the organization, or an authorized person who has a Level 2 electronic identity account according to regulations.
- Step 3: In practical implementation, foreigners applying for a Level 2 electronic identity account must have a valid temporary or permanent residence card. Depending on the status and purpose of residence, the temporary residence card can be issued under labor, investment, or other categories according to regulations.
- Step 4: To apply for a temporary residence card under the labor category, foreigners must have documents proving their corresponding labor status. For the LD2 category, the application must include a valid Work Permits; for the LD1 category, there must be documents proving the foreigner is exempt from a Work Permits as prescribed.
In reality, some FDI enterprises with a foreign legal representative may face difficulties in registering the organization’s electronic identity account, especially if the representative has not been granted a Level 2 electronic identity account and the enterprise has not arranged an authorized person meeting the conditions to perform the procedure.
If the representative is residing under the labor category, does not have a work permit yet, and therefore lacks sufficient documents to apply for a temporary residence card under the labor category, the enterprise may face a chain of obstacles involving work permit, residence, and electronic identity procedures. However, this situation does not automatically arise for all FDI enterprises but needs to be assessed based on the investment, labor, and residence status, as well as the representation structure of each enterprise.
2. Legal Risks and Practical Implications for FDI Enterprises:
When the aforementioned chain of obstacles arises without a timely solution, the enterprise and the employee may face the following legal risks:
- Difficulties in employing foreign personnel: The enterprise faces difficulties in submitting applications for the new issuance or extension of Work Permits for other foreign personnel within the company.
- Risks of administrative penalties: According to Article 32 of Decree 12/2022/ND-CP:
– For foreign workers: Working in Vietnam without a work permits or without a written confirmation of exemption from a work permits may result in a fine ranging from 15,000,000 VND to 25,000,000 VND, along with the supplementary penalty of expulsion.
– For employers (organizations): The fine level for organizations is twice the fine level for individuals (according to the provisions in Clause 1, Article 6, and Clause 4, Article 32 of Decree 12/2022/ND-CP), specifically:
+ From 60,000,000 to 90,000,000 VND for violations involving 1 to 10 workers;
+ From 90,000,000 to 120,000,000 VND for violations involving 11 to 20 workers;
+ From 120,000,000 to 150,000,000 VND for violations involving 21 workers or more.
- Impact on other administrative procedures: Delays in registering the organization’s electronic identity account can indirectly slow down the progress of other administrative procedures for the enterprise in the electronic environment.
3. Support Solutions from Vo & Associates Regarding Work Permits
Correctly determining the labor and residence status, as well as the authorized subject to register for an electronic identity account, plays an important role in minimizing operational disruptions and managing the enterprise’s foreign personnel.
At Vo & Associates Law Firm LLC, our team of lawyers with practical expertise is ready to accompany enterprises in analyzing applications, establishing optimal roadmaps, and supporting the resolution of current legal obstacles through our specialized services:
- Review and Evaluate the legal status of documents: Accurately determine the actual status of the enterprise to build a suitable and legal plan of action.
- Representation in carrying out administrative procedures: Support enterprises in executing procedures to apply for the new issuance or extension of Work Permits, Temporary Residence Cards, and the registration of the organization’s electronic identity accounts.
- Representation in working with state agencies: Represent the enterprise in working, explaining, and supplementing documents with competent authorities in accordance with legal procedures to minimize the risk of business disruptions.
Enterprises can contact us via the following channels for specialized support:
- 📞 Hotline: 0909 865 891 (Zalo, WhatsApp)
- ✉️ Email: hello@vo-associates.vn
- 🌐 Website: https://vo-associates.vn
- 🏢 Address: Room 105, 1st Floor, Cityview Building, 12 Mac Dinh Chi, Saigon Ward, Ho Chi Minh City
Sincerely.
Disclaimer: The content of this article is for general reference only, does not constitute official legal advice, and does not establish a lawyer-client relationship. Enterprises and individuals should seek professional consultation for specific situations before applying it to particular cases.
