Vietnam was one of the few economies in the world that wasn’t deeply affected last year amid the pandemic. And despite the new outbreak which emerged in January this year, the country continued to enjoy the economy rebounding to 6.8 percent by 2021. But what do the Covid impact enterprise in Vietnam? We take a deeper look at these questions.
Know Your Market Entry: Vietnam
Vietnam is located next to China and in the heart of ASEAN, has drawn the attention of many investors in recent years. Vietnam’s long coastline, easy access to the South China Sea, and proximity to the world’s major shipping routes provide ideal trading conditions.
The Impact of COVID-19
In 2020, the outbreak of COVID-19 and the resulting economic difficulty has been challenging. International organizations and World Health Organization have nevertheless lauded Vietnam for its rapid response to the COVID-19. Data shows that Vietnam is one of the few countries after China to record net positive GDP growth.
However, challenges remain such as taxation, legal, recruitment, office spaces, and payroll. We hope this Covid business entry guide will provide investors with an insight into key aspects of undertaking business entry in Vietnam and help you make an informed decision when beginning your operations.
Entry and Issuance of Visa for Foreign Experts
The Vietnamese government has implemented special entry and requirements to help longer-term foreign experts traveling to Vietnam. Specifically, the Provincial People’s Committees are approved via Official Letter No.2847/CV-BCD to support a list of foreign experts. The method is as follows:
- Step 1: The Vietnamese sponsor company must send a letter of request for admission approval to the competent authority in the province where its registered office is located. As a result, the regional People’s Committee and the provincial Department of Health will require entry and quarantine permits.
- Step 2: The sponsoring business in Vietnam is asked by the Immigration Department for entry and visa acceptance.
- Step 3: Expatriates must be tested on the COVID-19 with Real-Time PCR 3 to 7 days before they arrive in Vietnam. The research must be conducted in facilities accepted by the competent government or WHO labs in the home country.
Foreign experts are quarantined for 14 days at a hotel/quarantine facility pre-approved by the competent authority and checked for COVID-19 at least twice during the quarantine.
Vietnam Business Visa Processing Time During The Covid-19 Pandemic
The processing time of a business visa for Vietnam depends on the way you choose to get your visa.
- Visa on arrival: 05 – 07 working days to receive the approval letter. But if you need it urgently, you can get it in 02 – 03 working days.
- Visa at the embassy: depends on the embassy.
Set Up With The Covid Business Entry In Vietnam
Each legal entity type’s incorporation process is special and can take anywhere from one to three months. In general, foreign investors should follow the measures outlined below:
- International investors are obliged to obtain an Investment Registration Certificate (IRC) from the Department of Planning and Investment (DPI).
- An Enterprise Registration Certificate (ERC), is the second mandatory document to be obtained during the registration procedure.
- Investors are obliged to proceed with their tax registration, pay a business license tax and make their initial capital contribution.
We’re specialists in remote and offshore teams, and we’re happy to share our experiences with your business entry in Vietnam or project. If you have any concerns or need a more in-depth review on this topic, please do not hesitate to contact us.