Visa and work permit regulations that foreign investors need to know when investing in Vietnam

In the process of foreign investors investing and doing business in Vietnam, Visa and Work permit are indispensable legal documents that play a key role in immigration and legally work in Vietnam for his/her business purposes.

In this article, Asia Legal will provide some regulations and contents that foreign investors need to know about Visa and Work permit when investing and doing business in Vietnam.

 

I.              Visa

 

1.            Type of Visa

 

foreign investors investing in Vietnam through the form of establishment or capital contribution to companies operating in Vietnam are objects who eligible for a visa to do long-term business activities in Vietnam. According to Clause 7, Article 8 of the Law on entry, exit, transit, and residence of foreigners in Vietnam, foreign investors investing in Vietnam will be granted visas with the symbol "ĐT".

 

2.            Visa duration

 

The ĐT visa, which is issued to a foreign investor, is valid for a maximum of 5 years. When the visa expires, the foreign investor may be considered for issuing a new visa.[1]

 

3.            Conditions for visa issuance:

 

The foreign Investor shall be issued with a visa when he/she

 

(i)            Has a passport or laissez-passer.

 

(ii)           Is invited or sponsored by an organization or individual in Vietnam, except for the cases mentioned in Clause 3 Article 17 of the Law on entry, exit, transit, and residence of foreigners in Vietnam.

 

(iii)          Not suspended from the entry in the cases as follow: [2]

 

-       The passport or valid laissez-passer is missing or ineligible;

-       Children under 14 years of age without parents, guardians or authorized custodians.

-       Forging papers or providing false information to obtain entry/exit/residence permit.

-       Any person suffering from a mental disease or infectious disease that threatens the public health.

-       Any person that was deported from Vietnam within the last 03 years.

-       Any person that was compelled to leave Vietnam within the last 06 months.

-       For reasons of epidemic prevention.

-       For reasons of natural disasters.

-       For reasons of national defense, national security, social order, and social safety.

 

(iv)          Proof of entry purposes must be provided when applying for a visa such as: Investment Registration Certificate/ Enterprise Registration Certificate; Notice of satisfaction of the foreign investors' conditions for capital contribution or purchase of shares or stakes;…;

 

II.            Work Permit:

 

1.            foreign investor is the owner or capital contributor of the limited liability company; member of the Board of Directors will not be required to have a work permit.

 

According to Clause 1,2, Article 154 of the Labor Code 2019 provides the cases in which the foreign investors will be exempted work permit when working in Vietnam, including:

 

(i)            Is the owner or capital contributor of a limited liability company with a capital contribution value conformable with regulations of the Government.

 

(ii)           Is the Chairperson or a member of the Board of Directors of a joint-stock company a capital contribution value conformable with regulations of the Government.

 

As such, the foreign investor who is the owner or capital contributor of a limited liability company, and a member of the Board of Directors of a joint-stock company will not be subject to the issuance of the work permit. However, it is necessary to meet the condition of the capital contribution of a certain value (the Government will have detailed regulations later), at that time, the foreign investor will have not to fall into the subject of issuing the work permit. Although there is currently no government guidance on such specifical value of the capital contribution, this regulation will certainly set a minimum level of capital for foreign investors to contribute capital to enterprises for the purpose of minimizing the cases in which some foreign investors take advantage of contributing to a limited liability company with a small amount of capital to stay and work in Vietnam.

 

2.            Foreign employees working for enterprises established or contributed capital by foreign investors will be eligible for issuance of the work permit (except for the case stated in item 2.1 below).

 

2.1.        Foreign employees are not required to have the work permit:

 

a.    The workers are internally reassigned in the companies which engage in 11 service industries in the Vietnam’s WTO commitments on services, including: business, communication, construction, distribution, education, environment, finance, health, tourism, culture, entertainment and transportation;

 

b.    The workers enter Vietnam to provide professional and technical advisory services or perform other tasks serving the research, construction, appraisal, assessment, management and execution of programs and projects funded by ODA according to the International Treaties on ODA between the competent authorities of Vietnam and other countries;

 

c.     The workers are issued with the licenses for the practice of communications or journalism in Vietnam by the Ministry of Foreign Affairs;

 

d.    The workers are appointed by foreign agencies or organizations to teach or do research in international schools under the management of foreign diplomatic missions or international organizations in Vietnam or the workers are permitted to teach or do research in educational and training institutions in Vietnam by the Ministry of Education and Training;

 

e.    The workers are volunteers who have obtained the certification of the foreign diplomatic missions or international organizations in Vietnam;

 

f.      The workers enter Vietnam to hold the positions of experts, managers, chief executive officers or technicians for a period of under 30 days and an accumulated working period of under 90 days per year;

 

g.    The workers enter Vietnam to implement international agreements to which central or provincial agencies and organizations are signatories in accordance with the law;

 

h.    Students who are studying in schools or training institutions in foreign countries execute their practicum at agencies, organizations or companies in Vietnam upon agreements;

 

i.      Relatives of members who are executing their functions in foreign missions in Vietnam upon the approval of the Ministry of Foreign Affairs, unless otherwise stated in the International Treaties to which the Socialist Republic of Vietnam is a signatory;

 

j.      Workers are holders of Official Passports for working in state agencies, political organizations or sociopolitical organizations;

 

k.     Other cases decided by the Prime Minister at the request of the Ministry of Labor, War Invalids and Social Affairs.

 

2.2.        Conditions for issuing the work permit: [3]

 

Employees will have to meet the following conditions to be granted a work permit:

 

a.    The worker is capable of civil acts as prescribed by law.

 

b.    The worker’s health is fit for working.

 

c.     The worker is a manager, chief executive officer, expert or technician.

 

d.    The worker is not a criminal or liable to criminal prosecution in accordance with the Vietnam law and the foreign country’s law.

 

e.    The employment of the foreign worker is approved in writing by a state competent authority.

 

2.3.        Duration of the work permit:[4]

 

The duration of a work permit shall not exceed 02 years and is equal to one of the following durations:

 

a.    Thời hạn của hợp đồng lao động dự kiến sẽ ký kết;

 

b.    The duration of the labor contract to be signed;

 

c.     The duration of assignment in Vietnam decided by the foreign partner;

 

d.    The duration of the contract or agreement signed by and between the Vietnamese partner and the foreign partner;

 

e.    The duration of the service contract or agreement signed by and between the Vietnam partner and the foreign partner;

 

f.      The duration stated in the paper made by the service provider who sends the foreign worker to Vietnam to negotiate the service supply;

 

g.    The duration stated in the certificate of the foreign non-governmental organization or international organization that has been granted with operating license in accordance with the Vietnam law;

 

h.    The duration stated in the paper made by the service provider who appoints the foreign workers to Vietnam to establish its commercial presence;

 

i.      The duration stated in the paper proving the foreign worker’s eligibility to participate in the operation of a foreign enterprise that has established its commercial presence in Vietnam.

 

2.4.        Application for the work permit:

 

a.    The written request for the work permit made by the employer in accordance with regulations of the Ministry of Labor, War Invalids and Social Affairs.

 

b.    The health certificate or report on medical examination which is issued by the foreign or Vietnamese authorized health organizations or agencies and takes effect within 12 months from the signing date of conclusion of heath status to the date of application.

 

c.     The criminal record or written certification that the foreign worker is not a criminal or liable to criminal prosecution issued by the foreign competent authority. If the foreign worker is a lawful resident in Vietnam, only the criminal record issued by the Vietnamese competent authority is required.

 

d.    The criminal record or written certification that the foreign worker is not a criminal or liable to criminal prosecution must be issued within 06 months prior to the submission of the application.

 

e.    The written certification that the worker is a manager, chief executive officer, expert or technician.

 

f.      02 color pictures (4cm x 6cm, white background, frontal face, bareheaded and no colorful glasses) that are taken within 06 months ahead of the date of application.

 

g.    Certified copy of passport or a substitute for passport or other license for international travel which is unexpired in accordance with the law

 

h.    Documents related to the foreign workers

 By: Trang Nguyen | LinkedIn



[1] Khoản 6, 7, Điều 9 Luật Nhập cảnh, xuất cảnh, quá cảnh, cư trú của người nước ngoài tại Việt Nam

[2] Điều 21, Luật Nhập cảnh, xuất cảnh, quá cảnh, cư trú của người nước ngoài tại Việt Nam

[3] Điều 9, Nghị định 11/2016/NĐ-CP

[4] Điều 11, Nghị định 11/2016/NĐ-CP


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