Visas options open up for overseas investors
Non-nationals with differing investment scales in Vietnam will be granted different visas in the country, making it more favorable for authorized agencies to apply incentives to certain initiatives.
After continuous debate and revisions, the National Assembly (NA) last week adopted the revised Law on Foreigners’ Entry into, Exit from, Transit through and Residence in Vietnam, which will take effect on July 1, 2020.
One of the most notable new highlights in the law is that foreign investors in Vietnam will be offered assorted visa types with different valid times based on their investment capital volumes.
New visa types for foreign investors into Vietnam
- DT1 - To be granted to foreign investors in Vietnam and representatives for foreign organizations investing in Vietnam, with total investment capital of VND100 billion ($4.35 million) upwards, or investing into sectors and professions with incentives and geographical areas with priorities determined by the government. This visa will be valid for 10 years.
- DT2 - To be granted to overseas investors in Vietnam and representatives of such organizations investing in Vietnam, with total investment capital of between VND50 billion and VND100 billion ($2.17-$4.35 million), or investing into sectors and professions with encouragement determined by the government. This visa will be valid for five years.
- DT3 - To be granted to foreign investors in Vietnam and representatives of international organizations investing in Vietnam, with total capital of between VND3 billion and VND50 billion ($130,500-$2.17 million). This visa will be valid for three years.
- DT4 - To be granted to foreign investors in Vietnam and representatives for foreign organizations investing in Vietnam, with total capital of less than VND3 billion ($130,500). This visa will be valid for 12 months.
“The classification of investors based on their investment capital volume to offer them different visas is aimed to affirm the country’s eminent incentive policy in order to attract strategic investors, and large-scale investment projects in line with the Politburo’s Resolution No.50-NQ/TW dated August 20 on orientations to improve institutions and policies and enhance the quality and effectiveness of foreign investment through 2030,” stated a report on the new law last week delivered by the NA Standing Committee.
“At the same time, it will also help remove the existing situation that investors only fund a small amount of capital into Vietnam in order to take advantage of the current common regulations on granting a visa to investors, and then stay a long time in the country and cause economic, social, defense, and security consequences to Vietnam,” the report read.
Under the existing law, a common visa of “DT” is granted to “foreign investors and foreign lawyers practicing in Vietnam” within five years. This regulation has made it difficult for the authorized agencies to classify overseas investors, and have a legal foundation to offer incentives to lure strategic investors and major projects.
Source: Vietnam Investment Review