The National Assembly on November 25 approved the revised Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, in which the duration of a DT-typed visa for foreign investors now depends on the size of the investment.
|The revised law received endorsement from 404 out of 446 of National Assembly deputies present, representing an approval ratio of 83.64%.|
DT stands for investor or investment in Vietnamese.
The revised law received endorsement from 404 out of 446 of National Assembly deputies present, representing an approval ratio of 83.64%.
In the previous version, the law stipulated the duration of a DT visa is not longer than five years, which was considered flaw by the National Assembly’s Standing Committee.
Under the revised version, visa for foreign investors is now categorized into four types, namely DT1, DT2, DT3, and DT4.
DT1 would be issued to foreign investors in Vietnam and representatives of foreign organizations and businesses in Vietnam with capital contribution of over VND100 billion (US$4.3 million), or investing in the priority fields.
DT2 is granted to foreign investors and representatives of foreign businesses with capital contribution of VND50 – 100 billion (US$2.15 – 4.3 million), while investors with an amount of VND3 – 50 billion (US$130,000 – 2.15 million) are entitled for DT3. DT4 visa bearers are those pouring an amount below VND3 billion (US$130,000).
The duration for DT1 and DT2 does not exceed five years, DT3 for a maximum of three years and DT4 less than 12 months.
The National Assembly’s Standing Committee said the issuance of visa based on investment capital is considered an incentive to attract strategic investors and major projects. Moreover, this would prevent cases of investors with low investment capital from taking advantage of the law to stay in Vietnam for purposes other than doing business, causing negative consequences on the economy, society, and security of Vietnam.
The new regulation is also in compliance with the Law on Supporting for Small and Medium-sized Enterprises, stated the committee.
Additionally, the Investment Law does not specify the minimum investment, therefore, it is not necessary to state the minimum capital contribution for foreign investors under the DT4-typed visa.
The revised law now provides visa exemption to those investing in coastal economic zones as recommended by the government, as long as the zones meet conditions like those of international airports, or having defined geographical boundary.
The revised Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam is scheduled to become effective on July 1, 2020.