What you should know about Vietnam’s immigration and work permit issues during Covid-19 in 2021

TL;DR

Vietnam faces immigration and work permit challenges for expats during COVID-19.

Transcript

hello and welcome to climb's podcast series advancing vietnam with me vlad savin as your host throughout the following episodes we're looking to answering relevant questions about doing business in vietnam what are the opportunities and challenges faced by investors entering the market or existing players in major industries we will seek to underst... Read More

Key Insights

• Vietnam's immigration system is complex, with various visa types like tourist, business, and employment visas, each with specific purposes and limitations.
• Tourist visas are currently not being issued due to COVID-19, while business visas require sponsorship and are not for unrestricted activities.
• Recent enforcement of immigration laws has led to increased scrutiny, causing distress for expats on tourist and business visas in Vietnam.
• Decree 152, effective February 2021, has introduced stricter work permit regulations, including the controversial 'four-year rule' for foreign employees.
• Expats can no longer use in-country work experience for new work permit applications, affecting those with significant Vietnam experience.
• The 'four-year rule' is meant to ensure foreign workers are filling roles that Vietnamese cannot, but it complicates long-term expat employment.
• Married foreigners have some relief under Decree 152, with simplified processes for work permit exemptions, though industry-specific requirements may still apply.
• Foreign business chambers are advocating for changes to current regulations, but significant shifts are unlikely until after COVID-19-related cleanups.

Questions & Answers

Q: What are the main types of visas available in Vietnam?

Vietnam offers several visa types, including tourist visas, business visas, employment visas, and family visas. Each visa type serves a specific purpose, such as tourism, short-term business activities, employment with a work permit, or family reunification. Understanding the purpose and limitations of each visa type is crucial for compliance.

Q: How has COVID-19 affected visa issuance in Vietnam?

COVID-19 has led to the suspension of tourist visa issuance, and the authorities have become more stringent with business visas. Expats on tourist or business visas face increased scrutiny, and many are unable to extend or change their visa types. This has resulted in a significant number of expats leaving Vietnam due to visa challenges.

Q: What is Decree 152, and how does it affect foreign workers?

Decree 152, effective February 2021, enforces stricter work permit regulations for foreign workers in Vietnam. It includes the 'four-year rule,' which limits work permit renewals and requires new applications after four years. The decree also disallows using in-country experience for new work permit applications, complicating long-term employment for expats.

Q: Can expats use their Vietnam work experience for new work permits?

Currently, expats cannot use their Vietnam work experience for new work permit applications. The Ministry of Labor's interpretation requires experience outside of Vietnam, which affects those who have built their expertise locally. This interpretation is not explicitly stated in the law but is the current enforcement practice.

Q: What is the 'four-year rule' in Vietnam's work permit regulations?

The 'four-year rule' refers to the limitation on work permit renewals, requiring foreign workers to apply for a new work permit after four years. This rule aims to ensure that foreign workers occupy roles that Vietnamese cannot fill. While the authorities deny a strict four-year limit, the rule effectively imposes a fresh application cycle.

Q: Are there any exemptions for foreign workers married to Vietnamese citizens?

Yes, foreign workers married to Vietnamese citizens can benefit from simplified processes for work permit exemptions. They need to notify the authorities, who will issue a confirmation within three days. However, they may still need to meet specific requirements for certain professions, as determined by other relevant ministries.

Q: What actions should expats take regarding their work permits?

Expats should plan well in advance, at least six months before their work permit expires, to navigate the complex application process. They should gather necessary documents from abroad and ensure compliance with current regulations. Understanding the new requirements and preparing early is essential to avoid disruptions in their residency and employment.

Q: Are there any efforts to change the current work permit regulations?

Foreign business chambers, such as EuroCham and AmCham, are actively advocating for changes to the current work permit regulations. However, significant changes are unlikely until the authorities complete their current efforts to enforce compliance and address illegal visa usage. Expats and businesses should remain informed and adapt to the evolving regulatory landscape.

Summary & Key Takeaways

• Vietnam's immigration environment has become increasingly challenging for expats due to stricter enforcement of existing laws and new regulations. The introduction of Decree 152 has complicated work permit processes, causing distress among foreign workers and businesses. Compliance with immigration and labor laws is now more critical than ever.

• Tourist and business visas are under intense scrutiny, with many expats facing difficulties in renewing or changing their visa types. The 'four-year rule' and the inability to use in-country experience for work permits are significant hurdles. Expats must plan well in advance to navigate these complexities.

• While married foreigners have some advantages under the new regulations, overall compliance has become more stringent. Foreign business chambers are advocating for change, but immediate relief is unlikely. Expats and businesses must stay informed and proactive to manage residency and work permit issues effectively.