Officially, since 2003, Vietnamese law has prohibited enterprises from employing more than 3% or 50 (whichever is less) foreigners in their total workforce. This rule received heavy criticism from FIEs operating in Vietnam, which often experience difficulty finding local employees with the business skills and English language ability to function effectively in a Western business environment.

In March 2008, the Vietnamese government issued a new regulation governing the use of foreigners in foreign enterprises. This regulation abolished the 3% maximum, but created a new cap for foreign workers. Now, no less than 20% of an FIE's "managers and experts must be Vietnamese nationals. Each FIE is also allowed to have up to three non-Vietnamese "decision-making directors. As this regulation is still in the early stages of implementation, it is yet to be seen to what degree it will be enforced.

As Vietnam's economy continues to expand, more foreign workers are streaming into the country. Recent estimates show that there are more than 35,000 foreign nationals currently working in Vietnam. This is about 60% more foreigners than just three years ago. Three-quarters of these are managers or technical experts, employed mostly by FIEs. As part of Vietnam's recent initiative to attract further foreign investment, the Ministry of Labor, War Invalids and Social Affairs (MoLISA), the government body responsible for labor regulations, has also announced plans to streamline the processing and approval system for foreign worker visas.