Compliance
How to Work and Live in Vietnam: Visa Tips

Vietnam is increasingly popular among expatriates due to its vibrant cities, tropical climate, friendly communities, and thriving economy. Known for its affordable cost of living and rich cultural experiences, Vietnam offers an attractive lifestyle mix for professionals looking to relocate.

With its blend of traditional charm and modern conveniences, Vietnam stands out as an appealing destination. Major cities like Hanoi and Ho Chi Minh City provide excellent job opportunities and growing infrastructure, including co-working spaces that support a wide range of career fields.


Overview of Vietnamese Work Visas


If you’re planning to work in Vietnam, understanding the visa types is crucial:


1. DN Visa (Business Visa): Suitable for short-term stays, this visa allows business activities such as attending meetings and seminars. Available for single or multiple entries, DN visas can be valid for varying periods, including 1, 3, 6, or 12 months, depending on your needs.

2. LD Visa (Work Visa): The primary visa for employment, the LD visa is used for long-term stays and generally requires a work permit. The LD visa has two main types:

   - LD1 Visa: This visa doesn’t require a work permit for those with special skills or those working on high-tech projects.

   - LD2 Visa: Requires a work permit, and your employer in Vietnam typically assists in the application process.


Both visa types have unique rules regarding entry frequency and duration, making it important to choose the option that matches your work arrangement.


How to Secure a Work Visa for Vietnam


To hire a foreign worker, Vietnamese employers are required to prove there is no local candidate suitable for the role. This includes posting the job for at least 30 days prior to hiring and obtaining approval from the Ministry of Labor, Invalids, and Social Affairs (MoLISA). This process applies primarily to higher-level positions like managers or technical specialists.


Work Permits in Vietnam


A work permit is typically required for any employment exceeding three months and is usually valid for up to 12 months, with an option for renewal. Not all roles require a work permit, however. Exemptions include:


- Transfers from international offices to Vietnamese branches

- Company owners or board members

- Licensed lawyers or registered volunteers


Employers handle most of the work permit application steps, including submitting a work contract and business registration certificate. Employees will need to provide essential documents like educational qualifications, a background check, a health certificate, and proof of work experience.


Vietnam’s Residency Options for Expats


Vietnam offers both Temporary Residence Cards (TRCs) and Permanent Residence Cards (PRCs) for expatriates who meet certain criteria:


- Temporary Residence Cards (TRCs): These cards provide extended residency options for expats with valid work visas, like the LD visa. TRCs offer convenient benefits, including multiple re-entries and simplified processes for tasks like opening bank accounts and renting housing. They are typically valid for 3 to 10 years, depending on the visa type, and can be renewed.

- Permanent Residence Cards (PRCs): These are reserved for individuals with strong ties to Vietnam, such as those who have made significant contributions, highly qualified experts, or family members of Vietnamese citizens. PRCs allow indefinite residence, making it easier for expats to settle long-term. PRC applications require sponsorship, usually from a Vietnamese citizen, and meeting specific residence requirements.


Importance of Compliance for Vietnam Work Permits and Visas


Strict compliance with Vietnamese employment regulations is essential. Employers face significant fines for employing foreign workers without proper documentation or for allowing work with expired permits. Expats working without a valid work permit may face fines and possible expulsion. It’s important to ensure all required permits are current and meet legal standards.


Tax Obligations for Foreign Workers in Vietnam


Vietnam follows a residency-based tax system. Expats who stay in the country for over 183 days annually or maintain a registered residence are considered tax residents and are taxed on their worldwide income at progressive rates. Vietnamese employers handle tax withholding, but expatriates must file annual tax returns. Vietnam also has Double Taxation Agreements (DTAs) with several countries to help prevent dual taxation.


Frequently Asked Questions


1. What visa is needed to work in Vietnam? The LD Visa is required for long-term employment and typically requires a work permit. The DN Visa is more suitable for short-term business activities.

2. Can I work in Vietnam on a tourist visa? No, tourist visas are strictly for leisure purposes, and working on a tourist visa is not allowed.


Conclusion


Vietnam is a vibrant and affordable place to live and work, attracting expats from around the world. By understanding work visa options, work permits, and tax responsibilities, professionals can ensure a smooth transition to life in Vietnam. For further assistance, consider consulting with a visa expert or an employer of record (EOR) to navigate Vietnam’s employment regulations confidently.