Foreign businesses in Vietnam urge relaxation of visa, work permit requirements

The foreign business community in Vietnam has again recommended the Vietnamese government loosen visa and work permit requirements to attract more tourists and skilled workers.

BritCham

In a document sent to the annual Vietnam Business Forum (VBF), the British Chamber of Commerce Vietnam (BritCham) notes that “attracting global talent to Vietnam still faces challenges, particularly in the inconsistent visa and work permit application process”.

It said Vietnam should continue to ease the burden for talent and other visitors and accelerate progress on digital application processes and the use of technology at airports.

In the tourism sector, Vietnam has not been as quick as neighboring competitors to adjust to the post-Covid reality and should consider urgent measures to keep pace with the growth seen by neighboring competitors, including further visa exemptions to major target markets like China, India, developed Europe, Australia, New Zealand, Canada, and the U.S.

They also recommend granting longer-stay visas for retirement travel and retirement visas for those wishing to retire in Vietnam.

AmCham

AmCham complained that like many businesses today, its members face delays in approval procedures and time-consuming administrative burdens which hinder or stall their projects and impact Vietnam’s competitiveness.

It suggested timely approvals of visas for foreign workers, especially experts, in addition to site master plans and related permits, business licenses, investments, and real estate development, as well as reliable and consistent use of e-government and e-approvals.

KoCham

For its part, KoCham suggested Vietnam diversify visa types. Currently, Vietnam issues tourist visas, business visas, and investment visas. However, the maximum duration for visas available to foreigners is five years. Even for the five-year investment visa, the investment amount required is substantial, starting at VND50 billion ($2 million). As a result, many long-term residents, including those under business visas, need to renew their visas every 2 years.

They requested a review of the visa extension process to simplify documentation procedures, and consideration of options such as permanent residency, especially for large-scale investors, to reduce the cost and effort associated with visa extensions. They also asked for the exploration of new visa categories that allow for long-term stays.

Like BritCham, KoCham suggested the establishment of a visa for retirees in Vietnam as a long-term alternative to increase foreign investment.

EuroCham

European firms suggested visa exemptions to all EU member states, the introduction of special visa types for conferences, exhibitions or sporting events, and streamlining immigration procedures. “[They] will boost Vietnam’s appeal as a premier destination for travelers and investors, crucial for global economic integration.

They noted that Vietnam should improve visa application and immigration procedures. As such, the administrative procedures, especially the e-visa portal, should be timely updated and upgraded to meet the increasing visa applications and improve user satisfaction. This also applies to immigration procedures, especially in Hanoi and Ho Chi Minh City, where visitors often have to wait for hours to complete entry procedures.

They also recommended extending the list of visa exemptions to all European countries and having a clear roadmap to implement this procedure; providing short-stay visa exemptions in certain situations, in particular in support of forums, exhibitions, and sporting events; and ensuring consistency between the Vietnamese and English versions of the e-visa portal.

Regarding work permit issues, the VBF working group for human resources, education and training points out that there are some potential improvements addressing current inconsistencies between work permit and business visa requirements, such as which companies qualify as sponsoring entities.

They recommended Vietnam implement effective work permit procedures to bring international expertise into the country. As such, Vietnam should ease the application time burden of administrative procedures and clarifying some of the wording in Decree 70; accelerating progress on digital applications; and clearer processes when applying for work permits directly from the ministry.

In addition, they proposed a mechanism applicable for working permit sponsors when changing foreign labor management authority from provincial departments of labor and the ministry of labor.

They recommended against new policies on de-registration requirements for foreigners going on business overseas during the validity of their visa/temporary resident card in Vietnam due to its administrative complexity.