The unprecedented disruption caused by the COVID-19 pandemic has no doubt affected the economy of every country, and Vietnam is one of them. The General Statistics Office of Vietnam reported that Vietnam’s GDP declined by 3.8% in the first quarter of 2020.
However, this is not bad news for investors. On the contrary, this environment provides a good opportunity for foreign investments, given the fact that Vietnam has won the war against the pandemic and Vietnam’s government has released many initiatives to help the country’s economy bounce back.
It is forecast that Vietnam’s economy will increase sharply at 6.6%, a substantial growth thanks to many other business opportunities presented by the coronavirus crisis.
The initiatives issued by the government include a US$10.8 billion credit support package, low-interest rates, financial assistance, and others.
To boost the economy further by encouraging more foreign investments, the law has also been modified with more visa options for investors.
Fully effective on July 1, 2020, the government of Vietnam revised its Law on Foreigners’ Entry into, Exit from, Transit through, and Residence in Vietnam.
The change now allows foreign investors to obtain different Vietnam investment visas based on their amount of investment capital.
The existing law states that a common visa known as DT can only be granted to foreign investors and foreign lawyers practicing law in Vietnam, while a common DN visa is only issued to foreigners who enter Vietnam to work with local enterprises.
So under this revised law, with no change to the existing investment laws, more types of Vietnam investment visa are added with different valid times:
For foreigners who would like to enter Vietnam to seek investment opportunities, visas such as LV1, LV2, DN1, or DN2 shall be granted, depending on the specific purpose of their visit.
A DN1 visa permits foreigners to come to Vietnam and work with legal local organisations and enterprises, while the DN2 visa allows foreigners to enter Vietnam to establish its commercial presence and provide services. A DN2 visa holder can also carry out other relevant activities under international treaties as long as Vietnam is a member of those treaties.
However, foreigners looking for investments in Vietnam through capital acquisitions are not able to obtain a visa as direct investors. This is because this type of activity, as defined by the National Assembly of Vietnam, is considered profit generation through asset purchase without any participation in enterprise activities of enterprises.
Cekindo can offer seamless support and effective guidance to foreign individuals and companies at every stage of the application of the Vietnam investment visa.
Our dedicated team of visa consultants has many years of experience in handling different types of visa processing in Vietnam – with the most up-to-date knowledge of local rules and regulations.
We are also specialised in offering extra value-added services such as visa sponsorship and other cost-effective business consulting services.
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