Simplifying the Procedure for Foreigner to Reside in Vietnam

For foreigners wishing to come to Vietnam to work and reside temporarily, they need to either set-up a company in Vietnam or work for others. The owner of the company does not need a work permit but still need to apply for temporary residence card.

However, the foreign employee will need the employer to sponsor the work permit in Vietnam before applying for temporary residence card. A recent draft law on entry, exit and residence of foreigner in Vietnam has been proposed with some changes. The draft regulates many open provisions on entry-exit procedure, temporary and permanent residence conditions for foreigner to reside in Vietnam. ANT Lawyers always follows the new updates about administrative procedures in Vietnam to provide our client with the best service.

The new draft law details conditions for granting the temporary residence card for foreigners working in Vietnam, rising term of this card from 3 year to 5 year. The foreigners’ category expands to scientists and specialists residing in Vietnam for the purpose of attracting international talents, the foreigners who don’t have any type of document proving nationality, and have resided in Vietnam before the year 2000. The foreigners holding temporary residence card must change card per periodically 10 years at the issuing offices. The draft law does not allow the foreigners to change the entry purpose, but allows them to supplement the purpose of belonging persons in some specific cases such as in term of diplomatic representative offices, consulate, international representative office of United Nations and students at universities, colleges, schools.

For more information or requirement of legal services to obtain temporary residence card in Vietnam, we could assist. 

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Visa, Work Permit and PIT – What Enterprises Should Consider When Employing Foreign Workers in Vietnam | Law Firms In Vietnam

Enterprises employing foreign workers in Vietnam should be aware of issues on visa, work permit, liability of enterprise related to Personal Income Tax (PIT) of the foreign employee as declaration, payment and finalization to ensure legal compliance.

Visa

Foreigners eligible working in Vietnam are foreign investors whom contribute capital to set-up company in Vietnam, chief representative of NGO, lawyers licensed by Vietnam Ministry of Justice, foreigners workers with valid working permits in Vietnam. Working visa in Vietnam is granted to foreigner working legally in Vietnam. Working visa for foreigner in Vietnam has maximum length of 12 months. In the case the foreigner wishing to stay longer, he/she could apply for temporary residence card for a period of up to three years. The application must be submitted to the provincial Immigration Department, and may include supporting documents such as a housing lease contract and an employer’s certificate of incorporation.

Work permit

Decree No. 102/2013/ND-CP elaborating some articles of the Labour Code on foreign workers in Vietnam states that for foreigners that requires work permit in Vietnam, the employing enterprises will have to apply for work permit for such employee before they start working. The head of the provincial People’s Committee will have to approve the necessity to hire foreigners before the Vietnam Department of Labour, Invalid and Social Affairs (DOLISA) grants work permit in Vietnam. For foreigners belonging to one of the cases exempted from work permit, the employing enterprises will have to request the provincial DOLISA where foreign workers regularly work to certify that such foreign workers are exempted before the day on which they start to work.

Personal Income Tax obligation

Foreigners whom are subject of Personal Income Tax (PIT) in Vietnam are resident and non-resident workers. Foreigners who reside in Vietnam for less than 183 days in a tax year are considered non-residents for tax purposes. The first tax year is the consecutive 12 months period from arrival date in Vietnam, and the second tax year will follow the calendar year. Non-resident foreigners working and earning income in Vietnam are subject to PIT at a flat rate of 20%. Foreigners who reside in Vietnam for 183 days or more in a tax year are considered tax residents in Vietnam and subject to PIT at progressive rates on their world-wide employment income. Incomes of foreign workers in Vietnam are based on salaries, wages, allowances and other benefits such as housing allowances, memberships at sport and health clubs, personal entertainments. The expenses not being subject to PIT are including return air tickets between Vietnam and home country of the foreigners, school tuition fees of children of foreigners which employing enterprises pay on their behalf.

Vietnam has signed double tax agreements (DTA) with a number of countries, in which tax exemptions may be applied in specified circumstances. To request for tax exemptions, the application has to submit the request to the Ministry of Finance.

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The Essential Information on Certificate of Origin from Vietnam

According to Decree No. 31/2018/ND-CP guiding Law on Foreign Trade Management in terms of origin of goods: “The Certificate of Origin means a written form or other form of equivalent legal validity granted by competent authority belonged to country, group of countries or territories exporting the goods based on regulations and requirements of origin, specifying origin of this goods”.

Set-up business in Vietnam

We comprehend that the Certificate of Origin (hereinafter referred to as “C/O”) is certificate of goods origin issued by a country (export country) to confirm goods produced and distributed by this country in the export market in accordance with the rules of origin to create the most favourable conditions for goods importing to other country (import country) on tariffs. C/O is an important instrument in importing and exporting goods.

Functions of C/O

Tariff preferences: Determining the origin of goods help us differentiate the import goods enjoyed tariff preferences to apply the preference regime according to trade agreements as signed by the countries.

Anti-dumping duty and anti-subsidy duty application: In the event that goods is dumped or subsidized in the market of other country, determining the origin of goods shall make anti-dumping duty and anti-subsidy duty application possible.

Statistics of trade and maintenance of quota system: Determining the origin of goods make compilation on statistics of trade of country or area easier. On this basis, competent authority of trade can maintain the quota system.

Category of C/O

Non-preferential C/O means a ordinary C/O confirming the origin of product from a specific country.

Preferential C/O means a C/O allowing the product eliminated or reduced from the country’s permission such as: Generalized Systems of Preferences (GSP), Commonwealth Preference Certificates (CPC), Common Effective Preferential Tariff (CEPT),…

The Agency granting C/O

Ministry of Industry and Trade of Vietnam is the agency granting Certificate of Origin directly or authorizing Vietnam Chamber of Commerce and Industry (VCCI) or other organization to issue Certificate of Origin.

According to the prevailing law, the treaty signed by Vietnam and the provision of import country on Certificate of Origin, the Ministry of Industry and Trade stipulates the regulation on selection of trader, procedure of self-certifying the origin, obligation and liability of self-certifying the origin, inspection of the self-certifying of origin of goods exported by traders and remedy.

Process of issuing C/O

When applying for C/O for the first time, the trader shall have to submit dossier to competent authority.

Dossier includes:

– Request for Certificate of Origin;

– Form of C/O filled in full into 01 (one) original copy and 03 (three) copies. The original copy and one of the copies shall be sent to the Importer by the Exporter and the Importer shall submit such instruments to competent authority in loading port or unloading port. The second copy and the third copy shall be saved by the agency issuing this C/O and the Exporter respectively. In case of import country’s requirement, the applicant can request the Agency issuing this C/O to grant more than 03 (three) copies of C/O;

– The declaration of completing the customs procedure at competent authority (certified copy with signature of competent persons), excepting the case it’s not necessary for export goods to declare according to the laws. The applicant of C/O shall have the right to submit this instrument no more than 30 (thirty) days from the date granting C/O in case of legitimate reasons.

If necessary, the agency issuing C/O may require the applicant to provide another instruments relating to export product such as: the declaration of importing material; the certificate of export; sales contract; VAT invoices; sample of material or product; bill of lading; air way bill and other instruments relating to origin of export goods..

Relating to enterprise participating eCOSys, all instruments shall be made by trader via electronic system and automatically transferred to agency issuing C/O. The agency issuing C/O bases on electronic dossier to check validity information and grant C/O to trader as soon as receiving full dossiers in hardcopy.

The agency issuing C/O informs the result of submitting dossier via eCOSys no later than 06 (six) working hours from receiving validity electronic dossier.

The agency grants Certificate of Origin to trader no more than 02 (two) working hours after receiving application in hardcopy.

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How Could a Vietnamese Change the Name?

According to the civil laws in Vietnam, a citizen’s full name including first name, middle name and last name has been registered at birth in the birth certificate when properly issued. If a Vietnamese wishes to change the name, there must be a legitimate reasons and the process and procedure have to follow Vietnam Civil Code.

Individuals may request competent state agencies to recognize the change of name in the following cases:

a) At the request of person with name which the use such names causes confusion, emotional impact on family, honor, rights and lawful interests of that person;

b) At the request of the adoptive parents about changing names for adoption or adopted child ceases adoption with the adoptive parents or when the birth parents request to regain the name that originally used;

c) At the request of the father, the mother or the child when determining parents of children;

d) Changing the family name of a child from their father’s family name to their mother’s family name or vice versa;

e) Changing the names of persons found their origins;

f) Change the name of the persons which gender is redefined;

g) The other case law on civil registration regulations.

Due to the complexity of the process in some cases, a law firm in Vietnam could help with a service which clients could same time and cost rather than trying to carry out the process themselves.

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The changes of laws will be monitored by ANT Lawyers. For advice or service request, please contact us via email ant@antlawyers.vn or call +84 28 730 86 529

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