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[JHat]

You're fine on a business visa if you have a work contract shorter than 3 months. There are many schools willing to hire short-term teachers on 3-month visas, and some actually encourage 3-month-at-a-time contracts in order to avoid paying employee benefits. If you sign a contract for more than 3 months, then it's on your employer to begin the work permit paperwork for you. As others have said, it's a very lengthy and difficult (and expensive) process, so most schools (even some universities) don't even bother going through with it. They will continue to employ you because they know they can get away with it.

The laws regarding unskilled foreign workers in Vietnam is really vague at the moment, but the main onus is on the employer to keep in line with Vietnamese laws. If in the slim chance you get caught and the government finds out that your school is employing you without a work permit, the worst that could happen is a fine for your employer, a non-reissuing of your Visa, or in the very slim chance, deportation. But don't worry, they aren't that organized yet.

http://www.immigrationlawyerblog.com/2011/01/foreign_workers_required_to_ob.html