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IMPACT – HIGH
What is the change? A new work permit category in Ho Chi Minh City is available for managers, executive directors, experts and technical workers transferred to a Vietnamese office as an intra-company transferee, or ICT.
What does the change mean? The category eases several requirements compared with the regular ICT route, including counting prior work experience within the business group rather than just with the investor of the Vietnam-registered entity and accepting work-permit applications as intracompany transfers in such cases.
Background: The new classification applies to “managers, executive directors, experts and technical workers.” Among the eased requirements:
Under the regular ICT route, the individual must have 12 months of experience with the sending entity, which must be the same entity that is listed on the Vietnamese business license; if an employee has worked for another entity within the same business group, it does not count toward the 12 months and the company must go through local-hire work permit procedures.
BAL Analysis: The new ICT category will benefit multinational companies transferring managers and other experts to Vietnam from a related overseas entity. However, it is currently only available in Ho Chi Minh City, and it is unclear whether other provinces will adopt it.
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.
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