Changes in the law of Vietnam for foreign investors
The law of Vietnam had amended and supplemented a few articles of their law regulating the entry, transit, exit, and status of residence for foreigners in their country. These changes were officially implemented in July 2020. This was the biggest immigration news in Vietnam in the recent past.
As an effect of those changes in law, the policy and rules for issuing temporary residence cards in Vietnam had been changed for foreign investors as well. Now, the foreign investors are bound to fulfil at least one of the conditions mentioned below to secure a card for temporary residence in Vietnam,
- Foreign investors who are capable of investing in the range between VND 03-50 billion shall get a temporary residence card with the maximum validity of 3 years.
- Foreign investors who are capable of investing in the range between VND 050 billion and less than VND 100 billion shall get a temporary residence card with the maximum validity of 5 years.
- Foreign investors who are capable of investing in the range between VND 100 billion and more shall get a temporary residence card with the maximum validity of 10 years.
Effects of these changes in the law
- So, as per the new amendments of the law of Vietnam, foreign investors gained the advantage of getting temporary residence status for as long as 10 years at the max. This is a longer period as compared to the old rules and regulations.
- However, at the same time, the law has governed the amount of minimum investment as VND 3 billion for foreign investors to apply for a temporary residence card. This will help the economy of the country as well.
- Foreign individuals who are interested to invest in Vietnam having a capital of less than VND 3 billion will not be able to apply for a temporary residence card. However, they can get a VISA with a maximum of 12 months of validity. This regulation is purposefully implemented to restrict foreign investments by individuals to gain the undue advantage of long-term residency status in Vietnam.
- These changes also ensure the seriousness of the foreign investors about investing in Vietnam.
- In the case of old investors who invested capital less than VND 3 billion long times back and enjoying the facilities of temporary residence, will not be able to apply for a renewal of their temporary residence cards unless they decide to increase their investment up to the minimum value of VND 3 billion or more.
Foreign investors eligible for work-permit exemption
The new regulations in the law of Vietnam also allow exemption of work-permit for foreign investors in the following two specific cases,
- The owner or member of equity of an LLC with a capital investment of VND 3 billion or more.
- The chairman or a member of the Board of Directors of a company with a capital investment of VND 3 billion or more.
There are significant changes in Vietnamese policies for foreign investors of all sizes. Rules became more stringent for foreign investors with an investment capability of less than VND 3 billion. Besides, those investors have a limited time frame of a maximum of 12 months to perform and make a profit.
So, it might be an alternative for them to think about another country with more leniency and facilities than Vietnam to invest their capital. For example, they can opt for the UK. However, they need to minutely carry out all the legal procedures to become an eligible applicant for long residence UK. In case the investor has spent 10 continuous years in the UK, he/she can also apply for ILR (Indefinite Leave to Remain) to settle in the UK. In case of achieving ILR, the investor can stay there for an indefinite period.
It is important to mention here that the entire process of settling in the UK is a cumbersome legal process and calls for expert guidance from the best immigration solicitors in business.