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IMPACT – MEDIUM
What is the change? The Ministry of Labor, Invalids and Social Affairs has released a draft guidance on an online work-permit application system that it is currently being tested in some provinces.
What does the change mean? The system will be in pilot phase until the end of June and become mandatory for all provinces starting July 1, when it is expected to be centralized in one nationwide portal.
Background: The current online system is in testing stage and individual provinces vary widely in their implementation. Beginning July 1, an online portal for submitting applications and supporting documents will become mandatory for all provinces. In addition to shortening processing times, the system will allow companies to monitor the progress of their applications and receive notices from authorities on pending applications.
BAL Analysis: The system should improve consistency and efficiency in processing. BAL will continue to update clients on developments and improvements to the online system as they are implemented.
This alert has been provided by the BAL Global Practice group and our network provider located in Vietnam. For additional information, please contact your BAL attorney.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Vietnam has released guidelines on the terms of the electronic visa program for nationals of 40 countries that took effect Feb. 1. The e-visa is valid for a single entry and a stay of 30 days.
What does the change mean? The guidance provides additional details on e-visa eligibility, application and renewal procedures, and processing times.
Background: Vietnam extended its e-visa pilot program to 40 countries in February. The list of nationals can be viewed here.
Either the Vietnamese host (sponsoring) entity or the individual traveler may apply for the e-visa by completing the electronic form on the government portal. If the application is made through the local host entity, the entity must register and be approved for an e-visa account and receive a digital ID from the Labor Department before applying for the visa for their business travelers. If the host entity applies on behalf of the individual, the e-visa will indicate the name of the host entity. A local host entity may renew an e-visa one time for an additional 30 days. The visa category appearing on the e-visa document is “EV,” whether the purpose of the trip is business or other.
BAL Analysis: The guidance clarifies several processing issues, but it does not mention whether an e-visa holder can convert to another category, such as a work visa, while in Vietnam. Therefore, business travelers planning long-term assignments in Vietnam should continue using the regular multi-entry business visa until authorities provide further guidance on e-visa conversions.
What is the change? Vietnam has implemented an e-visa pilot program for nationals of 40 countries.
What does the change mean? Nationals of the 40 countries listed below who are traveling to Vietnam for business or tourism may fill out an online visa application before travel and obtain an e-visa.
Background: Vietnam announced last fall that the e-visa system would be implemented in early 2017. The countries covered by the program are:
BAL Analysis: The e-visa program may be a good option for those traveling on business to Vietnam and may save significant time in the visa process for nationals of the 40 countries.
What is the change? Australia and Vietnam have reached a reciprocal Work and Holiday visa arrangement.
What does the change mean? Under the agreement, 200 individuals aged 18 to 30 from Australia and Vietnam will be able obtain Work and Holiday visas. The visas will allow for Australian and Vietnamese nationals to travel, work and study in each other’s countries for up to a year.
Background: Once the arrangement is implemented, Vietnam will join a host of countries that have work and holiday arrangements with Australia.
The countries that currently have reciprocal work and holiday visa arrangements in place with Australia include Argentina, Bangladesh, Chile, China, Hungary, Indonesia, Israel, Luxembourg, Malaysia, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Thailand, Turkey, the United States and Uruguay. Australia and Ecuador signed a reciprocal work and holiday visa arrangement in January, but that agreement has yet to take effect.
Australia’s current work and holiday program allows foreign nationals to visit for up to one year, during which time they may study for up to four months and work for up to six months for an employer.
BAL Analysis: The Work and Holiday visas provide an opportunity for employers with global programs to employ Australian or Vietnamese nationals.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 0101248
IMPACT – LOW
What is the change? Foreign contractors registered as “operating offices” in Vietnam in one of 11 designated sectors are now eligible for work-permit exemptions for intracompany transfers, assuming they fulfill all other criteria to obtain the required work-permit exemption certificate.
What does the change mean? The types of entities eligible for work-permit exemptions have been expanded to include “operating offices.” The designation of “operating office” applies to certain foreign contractors licensed to carry out work after issuance of a contractor permit.
Background: The Ministry of Industry and Trade issued Circular 35 on Dec. 28 to replace a previous circular and provide additional guidance on work-permit exemptions. The circulars stipulate procedures for foreign workers of entities in 11 service sectors designated as exempt from work permits under Vietnam’s commitments with the World Trade Organization.
The 11 sectors are: business services, communications services, construction and related engineering services, distribution services, educational services, environmental service, financial service, health and social services, tourism and travel services, recreational/cultural/sporting services, and transportation services.
To qualify for the exemption, the intracompany transferee must hold a managerial position or be an expert, specialist or technician who has worked for the foreign company for at least 12 months before being transferred to Vietnam. The local host entity must hold the appropriate industry sector code on their business, representative office or operating office license and the company sending the assignee must have direct affiliation with the local host entity.
BAL Analysis: Companies licensed as operating offices in certain service sectors will benefit from the work permit exemption.
What is the change? Companies that were previously thought to be required to file new quarterly foreign labor reports may not need to do so after all—at least for the time being.
What does the change mean? Application of the quarterly reporting requirement varies from city to city. For now, authorities in Hanoi have confirmed that they will only require quarterly foreign labor reports from contractors who use foreign labor. Authorities in Ho Chi Minh City, however, have said they will apply the requirement to all companies employing foreign nationals, both local hires and assignees.
Background: Authorities issued Circular 40 in December, providing guidance on how to implement Decree 11, which introduced new rules for foreign employees. The decree and circular stated that contractors employing foreign nationals would be required to submit a quarterly report using a new form. However, as noted above, there appears to be variance in how authorities in different parts of the country are enforcing the new requirement.
BAL Analysis: Companies with questions about whether they are subject to quarterly reporting requirements for foreign workers should contact BAL. While Hanoi’s current position that the reports are only required for contractors could ease paperwork requirements for some, companies should err on the side of caution. Authorities have said they will impose penalties of between 1 and 2 million dong (about US$45 to $90) for those who are required to file quarterly reports but fail to do so.
What is the change? The Department of Labor, Invalids and Social Affairs of Ho Chi Minh City has released additional information on guidance provided last month, including announcement of a new rule that an assignment letter justifying an intracompany transfer must be issued by an owner or shareholder of the Vietnamese host company.
What does the change mean? The new information provides additional information and clarification on intracompany transferees, foreign labor reporting requirements and the penalties for failing to return old work permits.
Background: Officials provided additional information at a recent training session after issuing Circular 40 in December. The circular provided guidance on how to implement Decree 11, which introduced new rules for foreign employees, including intracompany transfers.
Key points:
BAL Analysis: The new information on the ICT procedures are of particular note, as companies must be sure that the assignment letters are issued by the appropriate host company owner or shareholder. Contact BAL with questions about the new requirements to ensure that applications are not unnecessarily delayed.
What is the change? Vietnam has issued long-awaited guidance on the implementation of Decree 11 earlier this year that introduced new rules for foreign experts and employers.
What does the change mean? The guidance clarifies several important issues regarding foreign experts, intra-company transferees, 30-day work permit exemptions, change of workplace procedures, and quarterly reporting by companies on their foreign labor usage.
BAL Analysis: The circular provides important guidance and clarifications. Employers should contact their BAL professional for assistance in determining its impact in individual cases.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Vietnam has approved an e-visa system for nationals of certain countries applying for business and tourist visas beginning in early 2017.
What does the change mean? The e-visa system will allow certain foreign nationals to fill out an online visa application and obtain their visas upon entry.
BAL Analysis: The e-visa system is not expected to take effect until next year. Currently, the e-visa system allows applicants to enter their information and upload a photo, but does not allow online submission of the form. At this time, applicants must still print the form and submit it manually at a Vietnamese embassy or through a travel agency in Vietnam, whereafter the immigration department issues a preapproval letter; a visa stamp by the Vietnamese embassy or upon arrival is still required.
What is the change? Vietnam has begun issuing one-year, multiple-entry visas to U.S. nationals.
What does the change mean? U.S. nationals traveling to Vietnam for business or tourism are now eligible for visas with longer validity. Prior to the change, U.S. nationals were only eligible for visas that were valid for one or three months.
Background: Vietnam’s National Assembly voted to extend the visa validity period for U.S. nationals in April. At the time, the U.S. Embassy and Consulate in Vietnam said the deal underscored “the commitment of the U.S. and Vietnam to improve the bilateral relationship by expanding existing trade and economic opportunities and developing people-to-people ties.”
BAL Analysis: Officials hope the change will facilitate business travel and tourism and reduce the inconvenience of having to apply for visas more frequently.
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