Wednesday, January 7, 2015

From now, 05 year visa will be granted for the foreign investors in Vietnam

With the enforcement of the Law on Entry, Exit and Residence of Foreigners in Vietnam No. 47/2014/QH13 dated 16 June 2013 by the National Assembly of Vietnam (“Law No. 47/2014”), as from 01 January 2015, the foreign nationals who have the business investment in Vietnam may be granted a 05 year visa.  Previously, the foreign nationals were only allowed to obtain one year visas and three years residency cards.

Under the Law No. 47/2014, the foreign investors in Vietnam who are eligible will be issued a visa named “ĐT” which has the duration of maximum 05 years. A temporary residence card will be accordingly considered for issuance to those who have got this type of visa. The Law No. 47/2014 also allows the foreigners that are parents, spouse, children under 18 years of age of the foreigners issued with a ĐT visa to receive the same treatment.
In order to be considered as the foreign investor in Vietnam, the foreign nationals must qualify for the definition of foreign investor under the Law on Investment in Vietnam and also obtain an investment certificate for their business investment in this country.

Under the current Law on Investment No. 59/2005/QH11, foreign investor means any foreign organization or individual using capital in order to carry out an investment activity in Vietnam (In this Law, the investment activity means the activities of an investor in the investment process, comprising the stages of investment preparation, [and] implementation and management of an investment project). However, when applied in practice, the definition of foreign investment and investment activity under this current Law is not clear and make confused to determine those to whom are subject.

Recently, the National Assembly of Vietnam promulgated the Investment Law No. 67/2014/QH13 on 26 November 2014 which will take effect from 01 July 2015 (“Investment Law No. 67/2014”) and this new Investment Law provides with clearer definitions. 

Under the Investment Law No. 67/2014, foreign investor is defined as any individual with a foreign nationality or organization established in accordance with foreign law conducting business investment activities in Vietnam while the business investment means  the  expenditure  of  capital  by an  investor  to  conduct  business  activities  via  establishment  of  an  economic  organization;  investment  by  capital  contribution,  purchase  of  a portion  of  capital  contribution  or  shares  in an  economic  organization,  to  conduct  investment  on  the basis of a contract or implement an investment project.