BOZEP

Brief analytical summary on the Republic of Vietnam

Information current as of 01.08.2024

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VISION MODE:

 

Visa-free entry

Since August 15, 2023, Russian citizens can stay in Vietnam without a visa for up to 45 days. This period can be extended by leaving the country and returning.

 

Visa on Arrival (Visa on Arrival)

For longer stays, Russian citizens can apply for a visa on arrival (Visa on Arrival). To do this you will need:

1. Pre-approval. You need to contact one of the Vietnamese travel agencies or visa services that provide the service of getting pre-approval for a visa. This usually takes a few working days.

2. Visa application documents. Upon arrival in Vietnam at one of the international airports (Hanoi, Ho Chi Minh City, Da Nang, Nha Trang) you should provide:

   • A passport valid for at least 6 months from the date of entry.

   • A printout of the pre-approval letter.

   • A completed visa application form.

   • Two passport-sized photos (4x6 cm).

   • Pay the visa fee (about $25-50, depending on the type of visa).

 

Electronic visa (E-Visa)

Russian citizens can also apply for an e-visa on the official website of the Vietnamese government. The e-visa is issued for up to 30 days and entitles to a single entry. Procedure for issuance:

1. Go to (https://evisa.xuatnhapcanh.gov.vn) or (https://evisa.immigration.gov.vn/web/guest/khai-thi-thuc-dien-tu/cap-thi-thuc-dien-tu)

2. Fill out the online application form, upload a photo and a copy of the first page of your passport.

3. Pay the visa fee ( $25/single entry e-visa or $50/multiple entry e-visa)

4. After 3 working days, receive notification of the visa status by e-mail. If the visa is approved, print it out and present it at entry.

 

Visa extension

If you need to extend your stay in Vietnam, you can do so through a travel agency or visa service within the country. Usually, visa extensions are granted for 30 to 90 days depending on the type of visa and purpose of stay.

 

A simpler option is to go to a neighboring country and get a visa and enter back (Visaran by stamp). You can go to Laos, Cambodia (by land), fly to Thailand or Malaysia by airplane. It is more favorable to go to Laos, Thailand or Malaysia, as Russian citizens do not need a visa to enter them. It is possible to enter back with a ready visa both by land and by airplane.

 

Important notes

• Passport must be valid for at least 6 months from the date of entry.

• Make sure you have a return ticket or a ticket to a third country.

• Check current rules and requirements as visa policies may change.

This information is current at this time, but I recommend checking for the latest updates before traveling.

 

TAXATION OF INDIVIDUALS IN VIETNAM

 

Residents

Citizens who stay in Vietnam for 183 days or more in a calendar year are considered tax residents. Taxes for residents are levied on their global income.

• Personal Income Tax (PIT):

  • Income is taxed on a progressive scale from 5% to 35%.

  • Tax rates:

    • Up to 5 million VND: 5%

    • From 5 to 10 million VND: 10%

    • VND 10 to 18 million: 15%

    • VND 18 to 32 million: 20%

    • VND 32 to 52 million: 25%

    • VND 52 to 80 million: 30%

    • Over VND 80 million: 35%

Non-residents

Non-residents pay tax only on income earned within Vietnam.

• Income tax for non-residents: 20% on income earned from work in Vietnam.

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TAXATION OF LEGAL ENTITIES IN VIETNAM

 

1. Corporate Income Tax (CIT):

   • Standard CIT rate: 20%.

   • For some industries and incentive zones, the rate can be reduced to 10%.

2. Value Added Tax (VAT):

   • Standard rate: 10%.

   • Preferential rate: 5% (for certain types of goods and services).

   • Zero rate: 0% (for exports and some services).

3. Export and Import Duties:

   • Import duties (Link) Official website of the Vietnam Customs Service

   • Exparte Duties (Link) Official website of Vietnam Customs Service

   • Special Consumption Tax (SCT) Applies to certain imported goods (such as alcohol, tobacco, cars)Varies: 15-150% depending on the product.

   • Environmental Protection TaxApplies to certain goods that may have an impact on the environmentDepends on the product, e.g. gasoline - VND 1000-4000 per liter, coal - VND 10,000-20,000 per ton.

   • Anti-Dumping DutiesApplies to imported goods that are sold below market price and harm local producersDetermined on a case-by-case basis.

4. Land Use Tax (Land Use Tax):

   • Rates depend on the location and acreage of the site.

5. Natural Resources Tax:

   • It is levied on the extraction of minerals and natural resources. The rates depend on the type of resource and vary depending on government policy. Currently, the following rates are set. 

   • Mineral Resources: Metals: Iron: 10-15% Copper, nickel, tin, lead, zinc: 10-20% Gold: 15-30% Silver, platinum and other precious metals: 15-30% Non-metals: Diamonds, gemstones: 15-20% Coal: 4-20% Building materials (gravel, sand): 1-10%

   • Oil and gas: Oil: 6-29% Natural gas: 1-10% Gas condensate: 10-25%

   • Water resources: Fishing (including marine and inland aquaculture): 1-10% Industrial use of water (hydropower): 2%

   • Forest resources: Wood: 1-15% Forest products (rubber, honey, resin): 1-3%

   • Other natural resources: Marine products (including salt): 3-10% Natural landscapes and resources (ecotourism, utilization of geothermal and mineral springs): 3-20%

6. Property Tax:

   • Property taxes include real estate tax and vehicle tax.

Fees and mandatory payments

1. Social Insurance (Social Security):

   • Employers are required to pay social security contributions on behalf of their employees. The contribution rates are about 17% of the salary.

2. Health Insurance:

   • Employers are required to make contributions for employee health insurance. The contribution rates are about 3% of the salary.

3. Unemployment Insurance Fund (Unemployment Insurance):

   • Employers are required to contribute to the unemployment insurance fund. The contribution rates are about 1% of the salary.

 

ORGANIZATIONAL AND LEGAL FORMS (TYPES) OF LEGAL ENTITIES IN VIETNAM

 

1. Limited Liability Company (Limited Liability Company, LLC)

• Single-member LLC (Single-member LLC):

  • Established by a single participant, which may be an individual or a legal entity.

  • A member is liable for the company's obligations only to the extent of the contributed capital.

• Multi-member LLC (Multi-member LLC):

  • Established by two or more participants, but not more than 50.

  • Participants are liable within the limits of their contributions to the authorized capital.

2. joint stock company (Joint Stock Company, JSC)

• Established by a minimum of three shareholders, the number of shareholders is not limited.

• Shareholders are liable for the company's obligations to the extent of their contribution.

• The company's shares are freely transferable and can be traded on the stock exchange.

3. Partnership

• Includes a minimum of two partners.

• A distinction is made:

  • General partners: have unlimited liability for the company's obligations.

  • Limited partners: liable only to the extent of their contribution.

4. Representative Office of a foreign company (Representative Office)

• It is not a separate legal entity.

• May only perform representative functions such as marketing, market research and business networking.

• Does not have the right to carry out commercial activities and enter into contracts on behalf of the parent company.

5. Branch of a foreign company (Branch)

• Is a legal entity and part of a foreign company.

• May perform commercial activities and enter into contracts on behalf of the parent company.

• Must follow all local laws and regulations just like Vietnamese companies.

6. Private Enterprise (Private Enterprise)

• Represents the counterpart of the sole proprietorship form.

• Established and owned by a single individual.

• The owner has unlimited liability for the obligations of the enterprise. This means that in case of debts or other financial obligations, the owner is liable with all his personal property and not only with the assets of the enterprise.

 

PECULIARITIES AND RESTRICTIONS FOR NON-RESIDENTS

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• Certain activities are restricted or prohibited for foreign participation.  The following activities are prohibited for foreign participation: Manufacture and trade in arms, ammunition, explosives. Production and trade in firearms and military equipment. Protection of state objects strategically important for national security. Production of cultural objects and artifacts of historical significance. Exploitation, management and utilization of cultural and historical monuments. Conducting religious activities and managing religious institutions. Production and dissemination of materials contrary to national morals and cultural values.

• Restrictions: In some industries, there are restrictions on the maximum shareholding of foreign investors. For example, in the retail sector, non-residents can hold no more than 49% of the company's shares.

• Media and Telecommunications:

  • Broadcasting and telecommunication services: foreign participation is limited to 49% in some segments.

  • Publishing activity, production and distribution of printed publications.

• Financial and insurance services:

  • Bankruptcies, financial management: there are strict foreign participation and licensing requirements.

  • Insurance companies: foreign investors may hold no more than 49% of shares.

• Transportation and Logistics:

  • Inland waterways and inland air transportation.

  • Port and airport operations: restrictions on foreign equity and the need to comply with local regulations.

• Real Estate:

  • Foreign participation is limited in certain segments of the real estate market, such as the purchase of land plots and construction of residential projects.

• Education and health care:

  • Establishment and management of educational institutions at all levels.

  • Provision of medical services: there are restrictions on the share of foreign capital and licensing requirements.

• Retail:

  • Entry into the retail market is limited for foreign companies. For example, foreign companies can only open supermarkets or stores with certain conditions, including minimum capital and other regulatory requirements.

• Natural resources and the environment:

  • Mining, forest management and natural resource conservation.

  • Water resources provision and water supply management: foreign participation is limited depending on the specifics of the project and region.

• For some types of business there are minimum authorized capital requirements. For example, for banking and insurance, the minimum authorized capital is significantly higher than for other types of business.

• Non-residents are required to obtain special licenses and permits to conduct business in certain industries. These licenses may include permits from local authorities, import and export licenses, and other special permits depending on the type of business.

• In some cases, companies with foreign participation are required to hire a certain number of local employees or comply with quotas for local and foreign workers.

 

GROUNDS FOR OBTAINING VIETNAMESE CITIZENSHIP

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1. Naturalization Procedure:

   • By place of birth: Persons born in Vietnam to one or both parents who are Vietnamese citizens.

   • By marriage: Foreigners married to a Vietnamese citizen can apply for citizenship if they have been married for at least 5 years and have lived in Vietnam for at least 3 years at the time of application.

   • On long-term residence: Foreigners who have resided in Vietnam for at least 5 years and have a legal source of income can apply for citizenship, provided they abide by Vietnam's laws and show their integration into society.

   • By merit: Foreigners who have made significant contributions to Vietnam's economic, cultural, scientific or social development or have brought exceptional merit to the country may be awarded citizenship based on special decrees.

   • For children: Children of foreigners adopted by Vietnamese citizens or children born to Vietnamese citizens abroad can obtain citizenship under a simplified procedure.

2. On investing:

   • Vietnam does not have a formal "citizenship by investment" program like some Caribbean countries. Investment can contribute to residency and citizenship opportunities through long-term residence and integration. Foreigners who invest large sums in the Vietnamese economy or implement projects of strategic importance to the country can apply for citizenship if all the necessary requirements and conditions are met.

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