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When traveling to Vietnam, your nationality and the types of activities you will conduct during your trip will determine whether you may travel lawfully as a business visitor or if you require a work permit. Please seek advice from your immigration counsel if you are uncertain about the specific types of activities that constitute business or work.
As a business visitor to Vietnam, you may engage in the activities below. While this list is not exhaustive and other activities could qualify as business, you may:
Most foreign nationals, including those of the United States and the European Union member states, are required to obtain a visa to enter Vietnam as a business visitor.
Select nationalities are eligible to obtain an e-Visa prior to travel. Only nationals from select countries are eligible for visa waiver status, which allows visitors to enter and conduct business activities in Vietnam.
Those ineligible for a visa waiver or e-Visa must apply for a Business Visa from a Vietnamese Embassy or Consulate prior to traveling. Depending on nationality and circumstances, visas on arrival are available, provided that appropriate pre-approval has been obtained. However, it is strongly recommended that business visitors obtain an e-Visa or consular visa prior to travel. An individual assessment is required before traveling to determine your eligibility for a visa waiver, e-Visa, visa on arrival or Business Visa.
Vietnam is a member of the Asia-Pacific Economic Cooperation (APEC), and foreign nationals in possession of a valid APEC Business Travel Card (ABTC) endorsed with a “Valid for travel to VNM” are eligible to enter Vietnam on visa-waivered status.
The activities below, whether paid or unpaid, generally constitute work under Vietnamese law. This list is not exhaustive, and many other professional activities are considered work in Vietnam, even if conducted for a short duration.
In limited circumstances, foreign nationals may engage in certain short-term professional activities without obtaining work authorization, although strict preconditions must be met. An individual assessment is recommended to determine whether a work authorization exemption is applicable.
If I am traveling to Vietnam for work, what type of work permit do I need?
The requirements for a work permit depend on your qualifications, on the nature and duration of your work and on whether your employer has an entity in Vietnam. The most common Vietnamese work permits are:
Work permit exemption certificates are available in Vietnam for certain groups and professions, including foreign journalists, students and various others. In these cases, a legal assessment to determine the possibilities for a work permit exemption should be obtained prior to traveling.
Inevitably, the legal and strategic considerations impacting visa selection, as well as visa waiver and work authorization eligibility, entail the careful consideration of many factors. We recommend that you consult with your immigration counsel before taking any course of action.
IMPACT – MEDIUM
What is the change? All companies employing or assigning foreign nationals, including work permit holders, work permit exemption certificate holders and others working in Vietnam, are now required to submit a Foreign Labor Use Report every quarter.
What does the change mean? Employers should be aware that they will have to submit information on their foreign labor usage to the Department of Labour, Invalids and Social Affairs (DeLISA) on a quarterly basis.
Background: The quarterly reporting requirement was issued in April under an update to Decree 11/ND-CP/2016 that detailed the implementation of labor codes covering foreign nationals working in Vietnam.
The decree introduces two types of reports for companies employing foreign nationals:
Employers who fail to submit the report on time or who submit an incomplete report may be fined 1 million to 2 million Vietnamese dongs (about US$45-90).
BAL Analysis: Companies sponsoring foreign nationals to Vietnam should begin to prepare for this new requirement and update their policies to remain compliant with the regulations.
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 © 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.
IMPACT – HIGH
What is the change? The Ministry of Labour – Invalids and Social Affairs (MOLISA) has issued a long-awaited decree which reforms the rules for issuance of work permits for foreign employees.
What does the change mean? Among the key changes, foreign employees will be exempt from work permits for assignments up to 30 days and not exceeding a cumulative total of 90 days per year, but foreign experts applying for work permits must meet higher qualifications criteria.
Background: Below are the key changes that will take effect April 1.
Short-term work exemption
Processing times
Qualifications
Health and police certificates
Renewals
Cancelation
BAL Analysis: The decree simplifies procedures and introduces the 30-day exemptions that will benefit employees on short-term assignments, but foreign employees must meet higher qualifications for work permits. Applicants who qualified with only a university degree under current rules and who seek to renew their work permits after April 1, will either have to provide a certificate from an overseas entity confirming their expertise or they will have to provide both a university degree and work testimonials showing experience in their related field or position.
What is the change? A much-anticipated revision of the work permit laws is being finalized and the Ministry of Labour, Invalids and Social Affairs has detailed key changes in a draft decree.
What does the change mean? The draft decree contains many positive changes for foreign workers, including faster work-permit processing, new exemptions from work permits, more flexible qualifications standards and simplified processing for reissuance of permits when an employee changes location, job or employer.
Expected changes: On Aug. 6, the ministry held a consultation and released details of its draft decree. The long-awaited decree supplements the government’s 2013 overhaul of Vietnam’s work-permit regime in Decree 102.
The goals of the new decree are to simplify work-permit application procedures, increase foreign direct investment and make sure that employers consider Vietnamese workers before hiring foreign workers.
Key changes in the current draft include the following:
Processing times. Work-permit applications will be processed in seven business days, with the aim of further reducing it to three working days in the coming years.
Exemptions. Foreign nationals working in Vietnam for less than 30 days per visit will be exempt from work permits and will not be required to provide documentation of qualifications. The exemption will be valid for up to two years. Foreign pupils and students studying in schools or training institutions abroad and going to Vietnam to work in business offices and organizations will also be exempt from work permits.
Qualifications. Foreign experts and specialists will be required to provide a bachelor’s degree (or higher) or engineering qualifications (or equivalent). Individuals who cannot provide either must present evidence of at least five years of work experience in their field.
Health and police clearances. Health certificates showing that an applicant is in good health will be valid for 12 months from the date of examination instead of six months, but should be supplemented with a letter from the employer. Police clearance certificates issued by foreign or Vietnamese authorities will be accepted regardless of the applicant’s residence or duration of stay.
Renewals. Work permit renewals will be accepted up to 45 days before the expiration date on the existing work permit, giving applicants a longer window of time to renew their work permits as well as their temporary residence card or work visa. Foreign employees who move to a new province and seek reissuance of their work permits will go through a simpler process than the current one.
BAL Analysis: While the decree may still undergo changes before it becomes final, the draft version indicates that the government is taking several positive steps to simplify the work permit process and relieve the documentary burden on employers hiring foreign employees in Vietnam.
What is the change? The Ministry of Labour, Invalids and Social Affairs (MOLISA) confirmed yesterday at the Vietnam Business Forum that it expects to send revisions to work permit regulations to the National Assembly for approval in the coming months.
Background: In 2012, Vietnam introduced a new labor code followed in 2013 by Decree 102, which changed the regulations on employment and assignment of foreign workers. Guidance on the law came four months after implementation, and some areas continue to need refinement. In January of this year, a new immigration law restructured work permit categories. Meanwhile, MOLISA has been working on revisions to Decree 102 that are expected to address some of the business community’s concerns about the scope of work permits, exemptions for short stays, and ways to simplify procedures.
BAL Analysis: A final draft of the amended decree is expected around the third quarter, but is not expected to be implemented before the end of the year. MOLISA has not indicated whether it will accept public comments from the business community before it sends the final draft to the National Assembly for approval.
IMPACT – LOW
What is the change? Vietnam is strictly enforcing a requirement that people have at least six months remaining on their passport when entering the country.
What does the change mean? Travelers who will have less than six months on their passport when they intend to enter Vietnam should consider renewing their passport as soon as possible.
Background: Vietnam is strictly enforcing the six-month rule both for those who require visas to travel to Vietnam and those who do not. As of early January, travelers from visa-exempt countries, including Denmark, Finland, Japan, Norway, Russia, South Korea and Sweden, must make sure they not only are in compliance with the six-month rule, but also that at least 30 days have passed since their last visit to Vietnam.
BAL Analysis: All travelers to Vietnam, including visa-waived nationals, should check the expiration dates on their passports before travel. Those whose passports will expire within six months of their arrival in Vietnam should apply for a new passport as soon as possible.
What is the change? Business visitors in need of a Multiple Entry Visa for Business are now required to obtain it from a Vietnamese Embassy overseas before they can travel to Vietnam.
What does the change mean? Foreign nationals who were previously allowed to obtain the three-month Multiple Entry Visa for Business upon arrival in Vietnam must now make plans to obtain their visas in advance.
Background: With a new immigration law coming into effect on Jan.1, 2015, the three-month Multiple Entry Visa will only be issued on arrival for tourism purposes, not business. Business visitors and foreign nationals intending to start work in Vietnam must now obtain a Multiple Entry Visa for Business in advance of travel from the Vietnamese Embassy with jurisdiction over their current residence.
A company located in Vietnam must sponsor the application for a Multiple Entry Visa for Business. A detailed schedule of activities or work to be conducted in Vietnam must be included as part of the application. Typical processing time for a Multiple Entry Visa for Business is currently two weeks. If a foreign national is traveling to Vietnam to start work and obtains his or her work permit before the expiration of his or her visa, in-country extension of the Multiple Entry Visa for Business is still possible.
BAL Analysis: This policy change will require companies to make detailed plans for business trips to Vietnam in advance. Vietnamese immigration regulations have changed frequently over the past few years, with new regulations sometimes being reversed or significantly modified after a trial period. BAL is monitoring the effects of the new immigration law closely, and will provide updates regarding any changes.
What is the change? Vietnam’s new immigration law that restructures visa categories will take effect Jan. 1.
What does the change mean? Given the limited details or guidance on the new law, employers and foreign nationals assigned in Vietnam should expect changes once the authorities release further instructions following the Jan. 1 implementation.
Background: Vietnam’s National Assembly passed the new immigration law on June 14 with an effective date of Jan. 1, 2015. The law will restructure visas into 20 categories, prohibit foreign nationals from converting from one visa type to another and create new grounds barring entry and exit.
The most relevant visa categories for purposes of corporate immigration are as follows:
The law contains a provision that prohibits foreign nationals from changing the purpose of a visa. This is currently being interpreted to mean that a foreign national will not be allowed to convert from one visa type to another, such as entering on a tourist visa and changing to a work visa.
The third major change is an expansion of grounds for barring foreign nationals from entry or exit. Foreign nationals will be denied entry if they were deported within the previous three years, were ordered to leave within the previous six months or provided false information or documents to authorities. Children under 14 years old traveling without their parents or guardians will also be barred entry. Foreign nationals will not be allowed to exit if they owe taxes, are under administrative sanction or criminal sentence, or are a defendant or other party to litigation. Individuals in these categories will be suspended from exiting for up to three years .
BAL Analysis: This is a significant change to Vietnam’s visa system and its impact on visa procedures and processing times will be clearer when immigration officials release guidance. BAL is following these changes and will update clients as details materialize.
What is the change? Certain highly skilled intra-company transfers (ICTs) are now able to apply for exemptions from work permits.
What does the change mean? Foreigners who hold managerial positions or are experts, specialists or technicians in their field may apply for the exemptions, provided they work in one of 11 specified service sectors and have worked at a related foreign company for one year before secondment to Vietnam.
Background: Vietnam’s Ministry of Industry and Trade issued Circular 41/2014/TT-BCT on Nov. 5, spelling out the requirements for work-permit exemptions for intra-company transfers. The exemptions are available to foreigners who hold managerial positions or are experts, specialists or technicians in their field. In order to be eligible, the applicant must have worked at a related foreign company for one year before secondment to Vietnam. The Vietnam-based company also must be in one of 11 service sectors specified in Vietnam’s World Trade Organization commitment. The 11 sectors cover services in business; communications; construction and engineering; distribution; education; the environment; finances; health and social work; tourism and travel; recreation, culture and sport; and transportation.
While some delays should be expected as the program is implemented, the change should ultimately make it easier for companies to transfer highly skilled employees to Vietnam.
The new rules also ease documentation requirements. Consular legalization is not required (as it is for work permits), but any document issued in a foreign language must still be notarized and translated into Vietnamese. Applications can be filed at provincial offices of the Department of Labor, Invalids and Social Affairs. If the department rejects an application, appeals can be filed at the Ministry of Industry and Trade. Requests for appeals will receive a response within five working days.
BAL Analysis: Those planning an intra-company transfer to Vietnam should consider applying for the work-permit exemption. They should be prepared for possible delays, however, especially in the early stages of the program.
What is the change? Vietnam has issued a decree prohibiting representative offices of foreign companies established in Vietnam from directly recruiting Vietnamese employees.
What does the change mean? Representative offices of foreign companies must follow strict procedures for hiring Vietnamese employees through provincial government employment service centers established for that purpose, as well as file reports on recruitment and hiring of Vietnamese employees.
Background: The Vietnamese government issued Decree 75/2014/ND-CP on July 28. Under new procedures, government employment service centers at the provincial level will provide the sole avenue for the hiring of Vietnamese employees by certain foreign entities, including representative offices of foreign companies (RO), non-governmental organizations and non-profit organizations. The RO must initiate a demand to hire a Vietnamese worker by sending a written request specifying the number of candidates, required knowledge and skills, recruitment schedule and other details. Within 15 days, the service center must respond by introducing Vietnamese employees; if not, the RO may recruit Vietnamese employees directly. Within seven working days of signing a labor contract, the RO must send written notice and copies to the service center. ROs must also report their use of Vietnamese labor every six months annually or upon sudden request.
BAL Analysis: Previously, foreign entities were encouraged to go through the government agencies to recruit Vietnamese workers; now it is mandatory. Because the decree changes an earlier rule that allowed foreign organizations to directly recruit Vietnamese employees when those introduced by the service centers did not meet the criteria set by the employer, it is recommended that the employer’s job description and hiring criteria contain as much detail as possible.