EASIER TO SWITCH TO CORRECT VISA FOR FOREIGN INVESTORS AND JOB FINDERS

LEGAL UPDATE

The National Assembly of Vietnam adopted the revised Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam on 25 November 2019 (New Law).

The New Law will come into effect on 1 July 2020 and is expected to create more favorable conditions for foreigners in Vietnam as well as promote economic development.

Below we set out the most noteworthy changes.

1. Diversity of Visa Types for Foreigner Investors

One of the most significant changes in the New Law is that a foreign investor can be granted a visa for up to 10 years.

Currently, there is only a common visa DT for foreign investors and lawyers working in Vietnam. To attract strategic investors as well as enhance the quality and effectiveness of foreign investment, the New Law introduces 4 different visa types that can be granted to foreign investors and representatives for foreign organisations investing in Vietnam. The type of visa corresponds with the investment.

DT1 has a validity of 10 years and applies if the investment capital is at least VND 100 billion (~USD 4,291,845); or the investment is into sectors with incentives and geographical areas with priorities determined by the Government;

DT2 has a validity of 5 years and applies if the investment capital is between VND 50‑100 billion (~USD 2,145,923-4,291,845); or the investment is into encouraged sectors and professions determined by the Government;

DT3 has a validity of 3 years and applies if the investment capital is between VND 3-50 billion (~USD 128,755-2,145,923); and

DT4 has a validity of 1 year and applies if the total capital is less than VND 3 billion (~USD 128,755).

2. Visa Type Conversion

While currently a foreigner who is in Vietnam on a tourist visa cannot change his/her visa status, the New Law will ease the possibility to change the visa status while being in Vietnam already. In particular, a foreigner is allowed to switch the purpose of the visit during his/her stay in the country in the event that he/she:

- can prove he/she is an investor or representative of a foreign organisation that makes legal investments in Vietnam;

- can present a paper evidencing the direct family relationship as a parent, spouse or child with the invitee;

- has received a job offer which has been guaranteed by an agency or organisation in Vietnam; or

- enters the country on an e-visa and has obtained a work permit or confirmation that he/she is exempt from a work permit.

3. Temporary Residence Card

The New Law also amends the validity term of temporary residence cards, and the term will depend on the visa granted.

With its rapid economic growth, these amendments in the New Law are expected to lower barriers, and facilitate investment and travel into Vietnam.

For more information, please contact:

Mark Oakley / Managing Partner

mark.oakley@acsvlegal.com

Nguyet Le / Associate

nguyet.le@acsvlegal.com

© 2019 ACS Legal Vietnam Company Limited – All rights reserved

This legal update is not an advice and should not be treated as such.

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