Work permit

According to the labour law in Vietnam, enterprises that need to employ employees working in their organizations must fully meet the provisions on using foreign workers in the Labor Code 2012. Specifically, enterprises are only allowed to recruit foreign citizens to work as managers, executives, experts and technical workers that Vietnamese workers have not yet met the production and business needs. Before recruiting foreign citizens to work in the territory of Vietnam, enterprises must explain their employment needs and be approved in writing by competent state agencies. Therefore, enterprises wishing to recruit foreign workers to work in their company, need approval of competent state agencies, in particular, Department of Labor, War Invalids and Social Affairs in the province / city where the business is located ("DOLISA")

With DOLISA's approval, enterprises need to prove that the recruitment of foreign workers for the required job position is consistent with the needs of the business, the situation of Vietnamese labor recruitment for those positions, the benefits achieved for businesses when recruiting foreign workers instead of Vietnamese employees.

After approval of the demand for foreign labor from DOLISA, the enterprise shall follow the procedures for applying for a work permit for foreigners in accordance with DOLISA's approval. Foreigners who work in Vietnam without a work permit will be expelled from the territory of Vietnam according to the regulations of the Government and employers, who use foreign citizens without a work permit, will be handled in accordance with the law, specifically the administrative fine from VND 30,000,000 to VND 75,000,000 shall be imposed on employers depending on the seriousness of their violations (Article 22 of the Decree 95/2013/ND-CP). Therefore, employers and employees need to comply with the work permit when working in Vietnam or employing foreign workers to work in Vietnam.

For foreign workers, in order to be eligible for a work permit, the following specific conditions are required: (i) Having full civil act capacity as prescribed by law; (ii) Be physically fit to the job requirements; (iii) Be a manager, executive director, specialist or technical worker; (iv) Not be a criminal or subject to criminal prosecution in accordance with the laws of Vietnam and foreign laws; (v) Approved in writing by a competent state authority on the employment of foreign workers.

These are necessary conditions before an employee applies for a work permit in Vietnam. Documents proving the fulfillment of the conditions for granting a work permit, if issued by foreign countries, must be consular legalized and translated into Vietnamese when submitted in Vietnam.

The issuance of a work permit must be made at least 15 days in advance from the date the employee is expected to work in Vietnam.

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The note when housing transfer formed in the future?

Houses formed in the future are those in the process of construction investment and have not been tested and put into use. According to Clause 2, Article 105 of the Civil Code 2015, future-formed housing is an asset and the transfer of property must comply with civil law and relevant laws. One of them is the regulation related to taxes and fees when transferring property ownership.

For housing transfer formed in the future, the financial obligations under the law include: registration fee and personal income tax. For each of these taxes and fees, there are specific legal documents regulating.

Firstly, for registration fee: According to Decree 140/2016 / ND-CP, the house is one of the subjects liable to registration fee, with a fee of 0.5% of the registration fee calculation price. In particular, the price to calculate the registration fee for a house is the price promulgated by the People's Committee of the province or city directly under the Central Government in accordance with the law on construction at the time of registration fee declaration.

Secondly, for personal income tax: According to Article 24 of the 2007 Law on personal income tax, for non-resident individuals, the tax rate applicable to real estate transfer is 2%. However, in some special cases, this personal income tax and registration fee may be waived. Specifically, according to Clause 1, Article 4 of the 2007 Personal Income Tax Law, income from real estate transfer between husband and wife; natural father and mother with natural children; adoptive father and adoptive mother with adopted children; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother with grandson; grandfather, grandmother with grandchildren; Siblings are income exempt from personal income tax.

In addition, the seller may be subject to some additional items such as cadastral fee, metering fee, notarization of transfer contract unless the parties have agreed that the buyer will incur this fee or the parties have other deal.

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PPP and BCC Investment

1. PPP Investment

Public-private partnership investment (hereinafter referred to as PPP) is a form of investment which basis of a project contract between a competent state agency and a project investor or enterprise to build, renovate, operate, trade, manage infrastructure projects, and provide public services.

PPP is a fairly developed model and is applied by many countries to take advantage of the state and the private sector for socio-economic development. The object of the contract is usually infrastructure works that fall within the state's responsibility in the fields of transportation - urban areas, parks, electricity, social infrastructure works, commercial infrastructure works, economic zone and hi-tech technical infrastructure; agriculture,... Therefore, the State encourages cooperation with the private sector in the form of PPP to reduce the burden as well as the risks to the budget.

PPP investment is governed by many legal documents related to the use and management of state assets, including the Construction Law, the Law on Investment, the Law on Public Investment, and the Law on Management and Use of Public Assets, Bidding Law. In the near future, PPP Law will be drafted and enacted to focus on unified and uniform management in a legal document.

PPP contracts allowed by Vietnam include: Build - Operate - Transfer (BOT) Contract; Build - Transfer - Operate (BTO) Contract; Build - Transfer (BT) Contract; Build - Own - Operate Contract (BOO); Build - Transfer – Leases (BTL) Contract; Construction – Leases - Transfer (BLT) Contract; Business - Management (O&M) Contract; and Combined contracts combining the above types of contracts. In case the investor proposes to apply a contract different from those listed above, this contract needs to be approved by the state agency, considered and approved by the Prime Minister.

2. BCC Investment

In the forms of investment, business cooperation contracts is often chosen by investors because of the advantages of not having to set up economic organizations when project operates. Business cooperation contract (BCC) is a contract signed between investors in order to conduct business cooperation for profit distribution and product distribution without establishing economic organizations. Parties to a BCC contract establish a coordinating board to carry out the BCC contract. The functions, duties and powers of the coordinating board are agreed by the parties. BCC contracts signed between domestic investors and foreign investors or between foreign investors must carry out the procedures for the grant of investment registration certificates.

In the course of contract performance, the parties retain their own legal status and perform their rights and obligations under the contract on their behalf. The rights and obligations of the parties are only bound by the contract, but there is no organizational commitment as in the form of new legal entities. BCC contracts are suitable for short-term projects in the field of profitability and quick profitability.

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How Foreigners Could Obtain Residence in Vietnam Through Investment Scheme?

Foreigners could reside in Viet Nam under permanent residence or temporary residence status. In particular, foreign investors establishing or contributing capital to companies operating in Vietnam are subject to have temporary residence cards.

A Temporary Residence Card is the required document for the foreigners to legally stay temporarily in Viet Nam and the maximum term of a card is 05 years. The following will explain how Temporary Residence Card can be obtained in Vietnam through investment.

What are conditions for foreign investors to be granted temporary residence card?

Foreigners whom are granted a visa with a DT sign will be considered for a temporary residence card. The foreigners will need to apply for work permit exemption from authorities in Vietnam. The passport of foreigners has a minimum term of 13 months. Documents proving that foreigners contribute capital to, or invest in, enterprises in Vietnam for instance business registration certificates, investment registration certificates will be required. The foreigners will also need to provide clean criminal record card.

What required documents to be prepared for application for temporary residence card?

1. 01 Document requesting temporary residence card of guarantor ( form NA6 for agencies, organizations; form NA7 for individuals)

2. 01 Information form for a temporary resident card (form NA8)

3. 02 photos (image size 2×3 cm);

4. 01 Copy of passport and a valid visa (bring an original for comparison);

5. 01 Notice of use of the seal of the enterprise.

6. 01 Document introducing seal, signature of the authorized person of the organization (form NA16)

7. 01 Copy of legal ducuments of organizations to prove purpose to be granted temporary residence card, such as: investment registration certificate, business registration certificate.

How long it takes to apply for temporary residence card?

After 5 working days since receiving sufficient documents, state agencies will consider and issue temporary residence cards.

What are procedures to apply for temporary residence card?

Step 1: Prepare documents as prescribed by law.

Step 2: Submit application file

The officer receiving the application will check the legality and the content of the file. If the application is complete and valid, the officer receives the application and prints a receipt for the submitter.

Step 3: Return results

What state authorities to apply for temporary residence card?

Immigration Management Department of province or cities where the investment is registered.

Some difficulties when carrying out the procedure

Everyone can apply for a temporary residence card by themselves, but not all cases are eligible for a temporary residence card. When applying for a temporary residence card, have some difficulties like: the visa is not for right purposes; foreigners don’t understand the required documents, procedures for applying for temporary residence card so that you don’t know how to write the declaration of temporary residence card; have confusion about the declaration form used for individuals and agencies, organizations…. For result, application file is invalid and will be returned. You will have to go to implementing agencies many times to complete application file, which is costly, laborious, time-consuming but not yet available. Therefore, foreigners need the assistance of a reputable law firm to carry out the procedure effectively to be granted temporary residence card.

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