Posted 24.03. 2021 by Cekindo
Investment in Vietnam has been multiplying in the past few years. Thanks to its fast and efficient response to the coronavirus pandemic, Vietnam has a speedy economic recovery compared to other countries in Asia.
Despite the COVID-19 crisis, Vietnam’s GDP still showed positive growth with 2.91% in 2020, according to the General Statistics Office (GSO) of Vietnam. Vietnam’s economy will continue to grow in 2021 and beyond.
Data from GSO indicated that in 2020, Vietnam’s industrial activity developed by 3.3%. Utilities, manufacturing, construction, and other subsectors also recorded healthy growth. However, sectors such as hospitality and transportation ha showed slight declines due to the movement restrictions.
Other than Vietnam’s effective and swift counteraction to COVID-19, the country’s ability to secure international investors’ high confidence is also one factor contributing to the positive growth.
Investors’ confidence can be seen in the high foreign direct investments (FDIs) in 2020. The total number of FDI projects in 2020 was 32,915, with the overall stock value accumulated at US$382 billion. The top foreign investors in 2020 in Vietnam are China, South Korea, Singapore, Thailand, and Japan.
When it comes to investments in Vietnam, there is a big focus on quality. Therefore, Vietnam also wants to ensure positive growth by modifying its Vietnam investment law, especially immigration law. The country wants to encourage investors with higher capital to support the development.
On November 25, 2019, the National Assembly in Vietnam amended and passed the Immigration Law concerning Foreigners’ Entry, Exit, Transit, and Residence in Vietnam. This amendment came into force on July 1, 2020.
The following summarizes some of the essential changes of investment laws in Vietnam that foreigners have to take note of:
The purpose of the classification of investor visas by capital contribution is to create outstanding incentive policies to attract large investment projects and strategic investors.
1. DT1 Visa
Foreign investors in Vietnam with contributed capital of VND 100 billion or more can get a DT1 visa. DT1 Visa is also available to foreign individuals or organizations investing in industries and trades with preferential investments. The Vietnamese government will decide the investment incentives based on investment areas.
2. DT2 Visa
This Visa type is available to foreign investors in Vietnam with contributed capital between VND 50 billion and VND 100 billion. DT2 Visa is also available to foreign individuals or organizations investing in industries or trades encouraged for investment development.
3. DT3 Visa
DT3 Visa is granted to foreign investors and organizations investing in Vietnam with contributed capital between VND 3 billion and VND 50 billion.
4. DT4 Visa
The government in Vietnam will issue DT4 Visa to foreign investors and foreign organizations investing in Vietnam with contributed capital of no more than VND 3 billion.
DT1 and DT2 visas are only valid for a maximum of 5 years; DT3 visa is valid for a maximum of 3 years; DT4 is valid for a maximum of 12 months.
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