Till date foreign investments have been in 18 sectors, the sectors which have major investments are:
- Manufacturing industry (nearly 9.9 Billion USD)
- Electricity production
- Real estate business
- Retail
Of which, in 2020, 1947 new projects were granted investment registration certificates, a decrease of 29.4% over the same period of 2019. Besides that, there was a decline of 5.6% in total budget Investment with only 10.36 billion USD.
Pre-covid19, Vietnam was an attractive place for foreign investors with available competitive advantages and growing international recognition by being nominated as ASEAN Chairmanship or non-permanent member of the United Nations. After Covid-19, Vietnam is becoming one of the countries that have successfully prevented the spread of disease, so it has been considered as a safe country for foreign direct investment.
Economic experts suppose that with the current disease control situation, foreign investors will definitely pay more attention to Vietnam for the sustainable development of businesses. Through that, we can see how FDI Investors have a big impact on the rate of Vietnamese economic growth during the post-COVID-19.
In this article, GPO will guide on the visa exemptions you are entitled when you have an FDI business in Vietnam, which is as:
FDI Investors need DT Visa type to enter Vietnam for their business purposes, DT Visa is categorized into four types listed below based on the size of the investment.
- DT1 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of at least VND 100 billion ($4.3 million), or investing in the business fields and areas of investment incentives decided by the Vietnam Government. Valid for up to 5 years.
- DT2 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of VND 50 – under VND100 billion ($2.15 – 4.3 million), or investing in the business fields of investment encouragement decided by the Vietnam Government. Valid for up to 3 years.
- DT3 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of VND3 – to under VND 50 billion ($130,000 – 2.15 million). Valid for up to 3 years.
- DT4 – to be granted to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution of less than VND3 billion (< $130,000). Valid for up to 12 months.
As a recommendation of the Vietnamese Government, the law now provides Visa exemption to those investing in coastal economic areas as long as these zones meet the condition requirements such as International Airports and having a defined geographical boundary. To those who do not invest in coastal zones will need to prepare documents to get a Visa, please read this article before preparation of your documents for visa application.
HOW GPO CAN ASSIST
Hopefully, this article was helpful in your research relating to FDI in Vietnam. And we at GPO can assist you by providing market research as per your requirements. We can also assist you in recruiting a freelancer to generate revenue before setting-up office in Vietnam and if everything goes as per your expectations we can also assist with the business visa process as well as business legal advice for getting your business registered in Vietnam and then offer our core service of been your HR business partner in Managing your daily HR activities, as we are an HR business consultancy firm in Vietnam. So, please do connect with us and let us be your long-term partner in Vietnam.
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