13 Dec 2019
VIETNAM: Value of FDI Contribution to be Key to Determining Investor Visa Duration
The value of the capital contribution made to an FDI project in Vietnam is to become the primary factor in determining the duration of the associated investor visas. At present, a DT (investment visa) is issued for a maximum period of five years regardless of the value of the capital contribution. Under the terms of the newly-amended Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam (due to come into effect as of 1 July 2020), would-be investors and/or their representatives are to be issued with one of the following four categories of visa:
|Visa Category||Duration||Capital Contribution|
|DT1||Not more than 5 years||More than VND100 billion (US$4.3 million) or investments in designated priority industries|
|DT2||Not more than 5 years||More than VND50 billion (US$2.15 million) but less than VND100 billion|
|DT3||Not more than 3 years||More than VND3 billion (US$130,000) but less than VND50 billion|
|DT4||Less than 12 months||Less than VND3 billion|
The changes are intended to attract serious investors while deterring those with low-value investments from residing in the country for extended periods of time. The changes are also believed to be in line with a previous official directive to government bodies to step up their scrutiny of FDI applications.
In other changes set to be introduced, eligible overseas nationals are to be permitted to apply for a change in their visa or resident status without having to leave and re-enter the country. For example, those on a short-term tourist or business visa are to be allowed to apply for a longer-term investment visa if they can provide proof of having made a qualifying investment while in the country.