1. What is the change?
– Amendments to the Law on Entry, Exit, Transit and Residence of foreigners will come into effect on 1 July 2020.
Furthermore, a new labor code will come into effect on 1 January 2021, replacing the Labor Code implemented in 2013.
2. Immigration Law Amendments.
There will be some changes to the visa types as below:
- The LS visa: issued to foreign lawyers practicing in Vietnam.
- The investor visa (DT) and Temporary Residence Card (DT type) will be divided into 4 types depending on the investment amount of the company in Vietnam.
- DT1: issued to foreign investors and the representatives of foreign organizations investing in Vietnam with a capital contribution of VND 100 billion or more or invest in sectors and trades eligible for investment incentives and geographical areas investment incentives are decided by the Government.
- DT2: issued to foreign investors and the representatives of foreign organizations investing in Vietnam with a capital contribution of VND 50 billion to 100 billion or invested in industries and branches encouraged to invest in development are decided by the Government.
- DT3: issued to foreign investors in Vietnam and the representatives of foreign organizations in Vietnam with a capital contribution of VND 3 billion to VND 50 billion.
- DT4: issued to foreign investors in Vietnam and the representatives of foreign organizations in Vietnam with a capital contribution of under 3 billion VND.
- TRC duration will vary between 1 and 10 years depending on the investment amount.
- The DN visa is divide 2 types:
- DN1: issued to foreigners who work with other enterprises or organizations with legal status as regulations of Vietnamese law.
- DN2: issued to foreigners entering Vietnam to service offering, the establishment of a commercial presence, and other activities under international treaties to which Vietnam is a party.
- The working visa (LD) is divided into 2 types, too. For work permit holders and for work permit exemption holders.
3. The changes in visa-exempt nationals:
– Foreigners entering Vietnam under the visa exemption scheme are only required to have a passport which is still valid for at least 6 months. More significantly, the entry requirements are no longer required at least 30 days from the latest exit date. This change nationals of Denmark, Finland, France, Germany, Italy, Japan, Korea, Norway, Russia, Spain, Sweden, and the UK.
4. The change about tourist visa:
– Especially, the law clearly states that foreigners who enter Vietnam with a DL (tourist) visa, if the visa is valid for 1 month, they will be granted a 1-month temporary residence stamp on the visa, if the visa is for a period of 3 months, the temporary residence stamp is only issued for 1 month from the date of entry and want to stay and consider extending the temporary residence as prescribed. So the law is very suitable and limits the subjects who take advantage of tourist visas to work and work illegally in Vietnam.
Point a Clause 1 Article 13 of Law No.51/2019/QH14 provides the following: “The duration of temporary residence is equal to the duration of the visa; in case the visa has a DL category for a period of over 30 days and considered for extension of temporary residence as prescribed in Article 35 of this law.”
5. What does THE LABOR CODE change?
– Under the new Labor Code that takes effect in 2021:
Work permit exemptions will be expanded to certain owners and directors and to spouses of Vietnamese citizens
Work permits will be still a limit in the duration of 2 years but are allowed to extend for 2 more years and only once.
Labor contracts: labor contracts for foreign nationals must not exceed the validity period of the work permit. Employees may enter into multiple – term labor contracts with foreign employees provided that the work permit is granted.
