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IMPACT – MEDIUM
What is the change? The National Assembly has adopted amendments to its immigration law and a new labor law.
What does the change mean? Under changes to the immigration law, taking effect in 2020, foreign nationals will be allowed to convert status in-country under some circumstances, and visa-waived nationals will no longer be subject to a 30-day cooling-off period. 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, and work permits will be limited in duration to two years, extendable for an additional two years.
The main changes are listed below.
2020 immigration law changes:
2021 labor law changes:
Analysis & Comments: The two laws contain several welcome changes that should ease rules and conditions for foreign nationals, saving time and money for companies and expatriate employees. In particular, allowing foreign nationals to change visa categories in-country and removing the cooling-off period for visa-waived nationals will eliminate or reduce the need for additional travel. Additionally, the expansion of work permit exemptions and investor visas should help attract foreign direct investment and encourage economic development; however, foreigners will only be able to renew work permits once for up to two years.
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