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NA approves amended immigration law

Released at: 11:34, 26/11/2019

NA approves amended immigration law

Photo: VNA

Legislature passes law amending certain articles of Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam.

by Phi Linh

The National Assembly (NA) passed a law amending and supplementing a number of articles in the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam on November 25.

The amendments and supplements were approved by 83.64 per cent of NA delegates.

One of the most notable amendments is a regulation classifying investor visas on the basis of contributed capital.

New visa categories are:

DT1 - issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with capital contributions of VND100 billion ($4.3 million) or more or conducting investment in priority industries and geographical areas decided upon by the government.

DT2 - issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with capital contributions from VND50 billion ($2.1 million) to VND100 billion ($4.3 million) or conducting investments in encouraged industries as decided upon by the government.

DT3 - issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with capital contributions of between VND3 billion ($129,130) and VND50 billion ($2.1 million).

DT4 - issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with capital contributions of less than VND3 billion ($129,130).

DT1 and DT2 visas are valid for up to five years, DT3 for up to 3 years, and DT4 for up to 12 months.

In NA discussions, it was suggested that the classification of investor visas be considered on the basis of contributed capital because of inconsistencies in the provisions of the Law on Support for Small and Medium Enterprises.

Another opinion expressed was that capital contributions of less than VND3 billion ($129,130) for DT4 visas to be issued to investors is too low.

The NA Standing Committee explained that the classification of investors according to their contributed capital in order to establish superior preferential policies to attract strategic investors and large investment projects is based on the spirit of Resolution No. 50-NQ / TW promulgated on August 20 by the Politburo.

This will simultaneously overcome inadequacies and obstacles in practice when low-capital investors take advantage of general visa regulations for investors to stay in Vietnam for a long period of time, causing economic, social, national defense, and security consequences.

Stipulating the capital contribution (including investors with the DT4 visa) in the draft law ensures consistency with the law on supporting small and medium-sized enterprises, according to the NA Standing Committee.

It also stated that the Law on Investment does not stipulate the minimum investment level, so the minimum capital contribution of investors seeking DT4 visas is not stipulated in this law. The criteria for a DT4 visa are necessary in terms of purpose, content, and scope of operations in Vietnam of applicants and meet the requirements of State management.

The amendment also supplements cases of visa exemption as “entering coastal economic zones at the decision of the government” when meeting the conditions of international airports, with separate spaces and geographical boundaries and territorial separation from the outside.

The Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam will take effect from July 1, 2020.

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