Foreigners working in Vietnam may face more cumbersome procedures

illustration photo

Article 10 of the draft law, currently under discussion by the National Assembly, stated that in order to be granted a visa to enter Vietnam, “Foreigners coming into Vietnam for investment must show their investment certificates granted by authorised agencies”. This provision has been criticised as it would actually mean investors are less able to enter the country than a visitor on a tourist visa.

“The proposed rule that foreign investors must obtain an investment certificate before they can be granted a visa to enter Vietnam is ill-advised and counter-productive,” said AmCham Hanoi’s executive director Adam R. Sitkoff. “This proposed rule is even odder considering that investment certificates except in “conditional” areas are likely to be ditched anyway.”

Deputy Nguyen Thai Hoc representing Phu Yen province said this proposed provision “would not facilitate foreign investors entering Vietnam.”

He explained that in order to obtain an investment certificate, an investor would obviously need to visit Vietnam to explore investment opportunities and complete the necessary procedures. Yet according to the draft law, investors would be required to show an investment certificate as a compulsory condition before they could be granted a visa.

“This completely irrational, especially now when the country is in dire need of foreign investment,” Hoc said.

Echoing these views, Tran Trong Binh, senior associate at French law firm Audier & Partners Vietnam LLC, also said that “This provision is vague and infeasible. It would need to clarify the definition of who an investor is. A multinational foreign company can send many representatives to Vietnam to do business on just one project. Will all of them be granted investment visas?”

“What’s the point of an investment visa? How would it be different from a tourist visa? If there is a difference, then an investment visa should be of a longer duration and allow multiple entry,” Binh suggested.

Also under the draft law’s Article 10, foreigners working in Vietnam must have a work permit issued even before they are granted a visa to enter the country.

However, EuroCham’s chairwoman Nicola Connolly rejected the proposal.

“We understand the importance of ensuring all foreign nationals working in Vietnam follow the correct procedures for both immigration and employment. But this would be excessive and prove a nightmare for companies wanting to enter into Vietnam. There will be widespread confusion, creating a situation which would encourage high levels of corruption for such ‘problems’ to be fixed.”

“It is important to ensure that the right processes are in place, but companies will not send employees to Vietnam for training and best practice sharing if they need to follow some of these suggested new rules,” Connolly stressed.

According to Sitkoff, this regulation “would make the process of obtaining permission for foreigners to work in Vietnam even more difficult that it is today.”

Currently, the existing ordinance on immigration and residence of foreigners in Vietnam issued in 2000 enables foreigners to obtain a visa before they can apply for a work-permit in the country.

Sitkoff said government efforts to “manage” business activities had caused numerous investors to rethink their business and expansion plans in Vietnam. “Decisions on how products can be priced, who can work in Vietnam, and much more have contributed to a perception that investors might not be welcome and firms may need to consider doing business somewhere else.