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IMPACT – HIGH
What is the change? The Vietnamese Embassy in China has stopped issuing tourist, business and work visas to Chinese nationals and all other foreign nationals applying for visas in China.
What does the change mean? Chinese nationals and foreign nationals currently in China cannot apply for or obtain visas for travel to Vietnam. Foreign nationals applying for a visa-on-arrival pre-approval letter must prove they are not coming from mainland China, Hong Kong or Macau.
Background: Many countries in the region have stepped up efforts over the last week to contain the spread of the coronavirus. Vietnam recently stopped issuing tourist, business and work visas to Chinese nationals and issued other directives aimed at discouraging visitors from China, anticipating further restrictions.
Analysis & Comments: The latest visa policy indicates that the government is implementing increasingly stricter measures in response to the coronavirus outbreak. The visa policy is still developing, and Deloitte will continue to monitor the situation and will provide updates as they become available.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
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.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Vietnam has extended its e-visa program to foreign nationals of 34 countries.
What does the change mean? Foreign nationals from 34 countries, including Austria, Belgium, Brazil, China, Mexico and Switzerland, are now eligible for 30-day, single-entry e-visas to Vietnam. While tourist and business travel is allowed under the e-visa program, work activities are not.
Background: The e-visa program has been extended to nationals of 34 countries, along with Hong Kong and Macau passport holders, under Decree 17/2019. Nationals of the following countries are now eligible for the e-visa program, effective Feb. 1.
* China was previously included in the e-visa program, but not Hong Kong and Macau specifically.
Analysis & Comments: The e-visa program will ease travel procedures for nationals of 34 countries traveling to Vietnam for short-term stays. Travelers should note, however, that while the e-visa is typically appropriate for short-stay tourism and business activities, employees staying in Vietnam beyond 30 days or conducting work activities must apply for the applicable visa prior to entry.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? The Ministry of Labour, Invalids and Social Affairs has partially implemented a decree that amends work permit termination procedures.
What does the change mean? Employers must again notify the Department of Labour, Invalids and Social Affairs of early terminations.
Background: Circular No. 18/2018/TT has reinstated a previous rule that requires the sponsoring entity to notify the authorities of early work permit terminations. While the requirement has been formally reinstated, each province may enforce the requirement differently. For example, in Ho Chi Minh City the sponsoring entity is required to inform the authorities in writing of an early termination and the original work permit should be collected from the employee and kept by the host entity. Alternatively, in some provinces, the original work permit must be returned to the Department of Labour, Invalids and Social Affairs.
Analysis & Comments: Employers should ensure that the authorities are notified of all early work permit terminations as required by the new decree.
What is the change? Vietnam’s Ministry of Labour issued a decree last month, introducing a number of changes.
What does the change mean? The decree introduces changes that affect work permit applications, including the removal of the work permit cancellation process and a decrease to processing times.
Additional information: The new decree introduces changes and additions to Decree 11/2016/NĐ-CP. Key changes include:
Analysis & Comments: Some of the changes made by the decree alleviate work permit requirements for applicants and processes for employers. It remains to be seen, however, how the announced changes affect processing in practice as different provinces may transition in the changes at different times and in different phases.
What is the change? Immigration authorities in a number of Vietnamese provinces, including Hanoi and Dong Nai, have begun requiring foreign nationals who are at the end of an assignment to cancel and turn in their temporary residence card before leaving Vietnam.
What does the change mean? Foreign nationals affected by the change, as well as their dependents, must apply for a separate exit visa before departing Vietnam.
Background: Up until now, foreign nationals at the end of an assignment could leave Vietnam for their home country with their temporary residence card and then mail it back to a third party in Vietnam for delivery to the Immigration Department for cancellation. This has changed in Hanoi and Dong Nai, however, and authorities are requiring foreign nationals to turn in their temporary residence cards before leaving. While Hanoi and Dong Nai have adopted new rules, other provinces, including Ho Chi Minh, continue to operate under the old procedures, which allow foreign nationals to use their temporary residence card to leave Vietnam at the end of an assignment.
BAL Analysis: Those affected by the change should submit applications for exit visas within the time frame described above. They should note that they may need to leave their passport at the Immigration Department for seven days or longer while their exit visas are processed. BAL will continue to follow developments in Vietnam, including the possibility that more provinces adopt the new rules.
This alert has been provided by the BAL Global Practice group and our network provider in Vietnam. For additional information, please contact your BAL attorney.
Copyright © 2018 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.
What is the change? Labor authorities in Ho Chi Minh City have imposed a stricter rule requiring that work permit validity cannot exceed the expiration date on the sponsoring company’s business license.
What does the change mean? Foreign nationals applying to work in Ho Chi Minh City will be issued work permits that are valid for a maximum of two years, or the time remaining on a sponsor’s business license if it is less than two years.
Background: The rule described above previously applied at the immigration authorities to temporary residence cards and visas, but up until now, labor authorities were more flexible when it came to work permits. They would normally issue a work permit with a two-year validity period, even when a sponsor’s business license was set to expire in that time period. That practice changed this month, however, and authorities in Ho Chi Minh City have grown increasingly strict about tying work permit validity to the business license expiration date.
BAL Analysis: The change may have a limited impact on companies with operations in Vietnam that are usually given business licenses that do not expire for several years. Others, such as representative offices and project offices, however, are normally issued business licenses that are valid for a much shorter time period and may be more affected by the change. Sponsoring companies may wish to renew their business license to ensure that foreign workers are given as much time on their work permit as possible. The business license renewal process usually takes two months, but sometimes longer.
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.
IMPACT – LOW
What is the change? Authorities in Ho Chi Minh City have said that parents and adult children will only be able to obtain a six-month extension of their dependent visas before they will be required to leave Vietnam.
What does the change mean? Affected foreign nationals who are seeking an extension beyond the initial six-month extension will be required to leave Vietnam and obtain a new visa at a Vietnamese embassy or consulate in another country.
Background: Officials recently adopted the change without formal notice. For the time being, the new rule only applies in in Ho Chi Minh City.
BAL Analysis: Visa eligibility requirements have not changed, but the new procedures will require some adult dependents to leave Vietnam in order to extend their temporary residence beyond an initial six-month extension. The change will not affect spouses or minor children.
What is the change? Immigration authorities in Ho Chi Minh City have adopted a new process for obtaining multiple-entry business visas (MEBVs). In some cases, the new procedure may extend the time it takes to get MEBVs by about two days.
What does the change mean? Effective immediately, MEBV applicants in Ho Chi Minh City must complete an initial copy of a Form NA-2, to be submitted along with required supporting documentation. Authorities then provide a printed-out copy of the form that is returned to the sponsoring company for signing and stamping.
BAL Analysis: Thus far, Ho Chi Minh City is the only locale to institute the two-step process, which requires applicants to submit supporting documentation and a completed form that is then returned for signing and stamping. While substantive requirements remain the same, the new process may add about two days to processing times. Companies and business visitors should take note and adjust their schedules accordingly.
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.
What is the change? The online work permit application system that piloted in April will become mandatory July 1, starting in Hanoi and then in other provinces in coming weeks.
What does the change mean? Under the new system, applicants must apply for work permits on the government’s online portal and must use an e-signature authenticated by the company’s authorized signatory.
Background: The system, which is intended to streamline processes, was piloted in several provinces in April with the target date of July 1 for nationwide implementation.
BAL Analysis: The online process should improve the overall timelines and application procedures, although there may be some initial delays during the transition. For the time being, the Ministry of Labour, Invalids and Social Affairs is requiring applicants to produce original copies of supporting documents, which will be checked against the electronic copies submitted online, before they may collect their permits.