Vietnam’s government is preparing to implement a sweeping reform of its foreign labor management system by decentralizing work permit and immigration procedures. Beginning July 1, 2025, the Ministry of Home Affairs (MOHA) will officially transfer crucial administrative duties to provincial authorities, according to a newly issued decree.

This initiative is part of Vietnam’s broader effort to modernize public administration, reduce bureaucratic bottlenecks, and improve the country’s competitiveness in attracting foreign expertise and investment.

Key Administrative Changes Under the New Decree

Until now, MOHA had oversight over most work permit applications involving foreign workers, especially in cases that spanned multiple provinces or involved enterprises with central-level licensing. Starting in July 2025, that centralized approach will end.

Instead, Chairpersons of Provincial People’s Committees and designated provincial departments will take full charge of:

• Approving job positions for foreign workers

• Issuing and renewing work permits

• Reviewing and granting work permit exemptions, particularly for expert-level roles

By handing over these duties to provincial leaders, the government aims to accelerate decision-making, eliminate unnecessary delays, and create a more regionally responsive framework for immigration management.

Implications for Employers and Foreign Workers

For companies and foreign professionals, this change marks a major procedural shift. Rather than dealing directly with MOHA, employers must now coordinate with local provincial departments when seeking work permits or exemptions.

Importantly, the decree outlines a three-day review period for exemption requests submitted to the provincial Department of Home Affairs, after which the Chairperson must make a decision. In unique or urgent cases, such as international transfers, the Chairperson has the authority to issue exemptions independently.

However, observers caution that implementation may vary by province, creating potential inconsistencies in how applications are handled. Therefore, businesses that operate across multiple regions will need to engage closely with local authorities and adjust internal HR procedures accordingly.

Preparing for a Decentralized Immigration Landscape

Vietnam’s move to decentralize immigration oversight is part of a larger trend toward administrative empowerment of provincial governments. The central government now expects local leaders to demonstrate competency in managing complex policy matters such as foreign labor.

This shift also underscores Vietnam’s intention to become a more appealing destination for foreign talent by reducing procedural hurdles that have historically frustrated multinational companies.

With these changes looming, HR departments and legal advisors are strongly encouraged to begin preparations now. Key steps include:

• Studying local interpretations of “expert” exemptions, which could differ between provinces

• Establishing direct communication lines with relevant Provincial People’s Committees

• Monitoring updates and procedural guidance regularly as provinces adapt to their new roles

• Revising internal compliance and onboarding policies for foreign hires

A Step Toward Efficiency and Openness

This reform reflects Vietnam’s strategic desire to make its administrative processes more agile, transparent, and investment-friendly. By placing decision-making closer to the point of need, the country seeks to create a system that better reflects the real-world dynamics of labor and enterprise operations.

While some growing pains are expected as provinces adjust, the overall outlook points to faster approvals, improved stakeholder engagement, and a more localized understanding of foreign labor demands.

Businesses that take proactive steps to understand and navigate these changes will be better positioned to retain top talent and expand operations in one of Southeast Asia’s most promising markets.