As Kevin just blogged they are continuing to crack down.
Foreigners working in Vietnam for more than three months without a permit will not have their visas or their temporary residence cards extended, according to the draft.
In many cases, they will be deported, the draft said.
Six months after the draft takes effect this July, all foreign workers that have not applied for a work permit will be sent home.
How they are going to enforce this is beyond me. And of course, there are many ways around the problem, being Vietnam and all. 'Knowing someone' helps - although hardly fair on the rest of us, if someone can sort you out through the back door I'd make use of it. Then there's the Visa exemption if you are Vietnamese overseas or married here. Read this, how to get a 5 year Visa exemption - and you don't have to leave country every 90 days either.
The following from TN, without going into too much detail, explains how we have arranged residency cards for myself and Louisa (as my dependent).
Foreigners will not need the permit if they are members of limited firms that have two or more members, owners of one-member limited firms, board members of joint stock firms, promoters of specific services, and lawyers that are allowed by the Ministry of Justice to work in Vietnam.
So finally, after 5.5 years, we have three years of uninterrupted legality in country.