What is Decree 325 and why is it important?

Decree 325/2025/ND-CP provides detailed regulations on labour, employment, and social security within Vietnam’s International Financial Centres (IFCs), ensuring a flexible and globally integrated framework for attracting talent and investment.

Can companies in IFCs hire foreign employees without restrictions?

Yes. Decree 325 allows enterprises in IFCs to recruit both Vietnamese and foreign employees without any cap on the proportion of foreign workers.

How have work permit procedures changed under Decree 325?

Procedures are simplified—employers no longer need to notify recruitment of Vietnamese workers before hiring foreigners, and processing time is reduced to 3 working days.

What is the maximum working term for foreign employees in IFCs?

The working term can be extended for up to 10 years, providing stability and reducing repeated licensing procedures.

How does Decree 325 address social security for foreign employees?

Foreign employees can choose compulsory or voluntary social insurance, and exemptions or reductions apply if they already participate in equivalent schemes abroad.

Latest Labour Policies in the International Financial Center (IFC) in Vietnam

Published: 12 January 2026 · Last reviewed: 16 January 2026 · Reviewed by Ray Tay, Co-Founder & Managing Director, VIVOS PTE. LTD. (ACRA Filing Agent FA20240323 · MOM EA Licence 24S2425)

In the context where Vietnam has officially opened two International Financial Centres (“IFC”) in Ho Chi Minh City and Da Nang City. In pursuit of becoming a competitive destination globally for capital flows and high-quality human resources. The Government of Vietnam has provided detailed regulations on labour, employment and social security within the IFC (“Decree 325” dated 18 December 2025).

Accordingly, the recruitment and management mechanism for labour in the IFC is designed with several notable features as follows:

Table Of Content

An Open and Flexible Labour Recruitment Mechanism to Recruit both Local and Foreign Employees

One of the notable highlights of Decree 325 is that enterprises and organisations operating within the IFC are granted autonomy to recruit both Vietnamese and foreign employees in accordance with their operational needs, without being subject to any cap on the proportion of foreign employees.

This approach reflects a more open and liberal labour policy toward foreign workers, aiming to facilitate enterprises and organisations within the IFC in accessing human resources that meet the high professional requirements of the financial, banking, investment and related service sectors.

Simplified Licensing Procedures and Management of Foreign Employees

Decree 325 continues to demonstrate a reform-oriented approach by streamlining procedures related to work permits for foreign employees working within the IFC. Specifically, employers are no longer required to notify the Vietnamese recruitment authorities before recruiting foreign employees. At the same time, the processing time has been shortened to three working days, down from the usual ten working days.

In addition, the authority to receive and process procedures related to the issuance of work permits, as well as to confirm exemptions from work permit requirements, is delegated to the Management Department of IFC, which is directly responsible for the administration of IFC.

This approach significantly shortens processing timelines and creates favourable conditions for the attraction and rapid deployment of international human resources.

Extended Working Term of Ten years

Another incentive under Decree 325 that has been highly appreciated by enterprises is the ability to extend the working term of foreign employees for up to ten years. This allows both foreign employees and employers to achieve long-term workforce stability and reduces the frequency of reapplication for licenses.

A New and More Integrated Approach to Social Security

In parallel with expanding autonomy in labour recruitment and management, Decree 325 continues to place significant emphasis on social security policies, adopting a more flexible approach compared to the general legal framework.

Accordingly, both local and foreign employees working within the IFC are entitled to participate in social insurance, health insurance, and unemployment insurance in accordance with applicable law.

For foreign employees who are not subject to compulsory social insurance, the Decree allows them to choose an appropriate form of participation, including mandatory or voluntary social insurance, depending on the specific circumstances.

Notably, Decree 325 recognises the possibility of exempting or reducing compulsory social insurance obligations in Vietnam for foreign employees who have already participated in equivalent social security schemes abroad. This provision reflects efforts to harmonise the domestic social security system with international practices, while avoiding the issue of “double social insurance contributions” for foreign employees.

Conclusion

Decree 325 introduces a distinctive and forward-looking labour framework for Vietnam’s International Financial Centres, balancing operational flexibility with essential labour and social security safeguards. By easing foreign labour recruitment, simplifying administrative procedures, and adopting a more internationally aligned approach to social security, the Decree significantly enhances the IFC’s appeal to global investors and skilled professionals.

This evolving regulatory landscape highlights the importance of cross-border legal and corporate advisory expertise. Through its collaboration with DIMAC, this article offers practical insights into navigating Vietnam’s IFC labour regime, while VIVOS, as a Singapore-based corporate services provider, supports businesses operating across ASEAN with strategic structuring, compliance, and workforce planning solutions for regional expansion.

Together, this partnership reflects a shared commitment to enabling businesses to operate confidently within complex, multi-jurisdictional regulatory environments.

Credits: DIMAC

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Frequently
Asked Questions

What is Decree 325 and why is it important?

Decree 325/2025/ND-CP provides detailed regulations on labour, employment, and social security within Vietnam’s International Financial Centres (IFCs), ensuring a flexible and globally integrated framework for attracting talent and investment.
Can companies in IFCs hire foreign employees without restrictions?

Yes. Decree 325 allows enterprises in IFCs to recruit both Vietnamese and foreign employees without any cap on the proportion of foreign workers.
How have work permit procedures changed under Decree 325?

Procedures are simplified—employers no longer need to notify recruitment of Vietnamese workers before hiring foreigners, and processing time is reduced to 3 working days.
What is the maximum working term for foreign employees in IFCs?

The working term can be extended for up to 10 years, providing stability and reducing repeated licensing procedures.
How does Decree 325 address social security for foreign employees?

Foreign employees can choose compulsory or voluntary social insurance, and exemptions or reductions apply if they already participate in equivalent schemes abroad.