Vietnam employment visas
After incorporating a company in Vietnam, an entrepreneur may require visa solutions for them to work and reside in the country. Healy Consultants will assist our Clients in obtaining the relevant visas from Ministry of Foreign Affairs of Vietnam (MOFA). There is a wide array of visas available from MOFA, Healy Consultants will i) advise our Clients in determining the most suitable visa for both themselves and their potential employees, and ii) prepare high quality application to MOFA for increased probability of work permit approval.
DT visa (investor’s visa)
- DT visas allow foreign investors to work in Vietnam for up to 5 years. Application is made at any Vietnamese Consulate and take up to 10 days to process;
- At the moment of writing, there is no official minimum investment amount for a DT visa application. Healy Consultants recommend an investment upwards of US$200,000;
- Documents required for application include i) application form, ii) proof of legal status, iii) certification of investment, iv) certified true copy of license and v) temporary residence registration.
LD visa (work permit)
- All foreigners working in Vietnam are required to hold a LD visa. These visas have a validity of up to 2 years. Application is made at any Vietnamese Consulate and may take up to 10 days to process;
- To receive the work permit, applicants must i) possess a degree or have high degree of specialized knowledge, ii) be over 18, iii) be in good health condition and iv) have a clean criminal record;
- Application for LD visa can also be made by the employer in Vietnam on behalf of the employee;
- Documents required for the application include i) application form, ii) educational certificate or proof of work experience, iii) proof of clean (criminal) records, iv) work permission application letter and v) medical certificate;
- The Government requires all documents to be certified, notarized and translated into Vietnamese prior to submission.
Temporary residence card
- Foreign nationals working in Vietnam may apply for a temporary resident card for their accompanying family members. Application for the temporary residence card is made at the provincial immigration department and will allow its holder to reside in the country for up to 2 years;
- The temporary residence card may be used in place of a passport when travelling around Vietnam and will act as an entry visa when traveling back into Vietnam. A holder of temporary residence card need not apply for visa;
- Documents required for application include i) application form, ii) work permit, iii) employer’s certificate of incorporation and iv) house’s lease contract.
For shorter-term business visits to Vietnam, Clients may consider the following:
- Entrepreneurs may apply for a 3-months single/multiple entry visa for business visits to Vietnam;
- Likewise, application can be made at any Vietnam consulate and will take about a week to process;
- Documents required include i) application forms, ii) flight itinerary (for multiple entries visa) and iii) invitation letter from Vietnamese counterpart.
Vietnam corporate banking options
Since 2003, Healy Consultants Group PLC proficiently assisted our international Clients to secure a corporate bank account in Vietnam. While this process is time consuming, Healy Consultants will shelter our Client from the associated administrative challenges.
- Unfortunately, Vietnamese bank will often require foreign investors to provide a set of legalized due diligence, which may significantly delay the corporate bank account approval process;
- Some foreign financial companies are required to have local subsidiary and obtain a specific license issued by the State Bank in Vietnam in order to open a corporate bank account in Vietnam;
- Furthermore, not all Vietnamese banks offer banking facilities in English. Healy Consultants will guide our Clients to find the optimal banking institution for their needs;
- Vietnam corporate bank account opening and internet banking activation is a difficult task when done through a newly formed Vietnamese, when shareholders, directors and bank signatories reside overseas. Healy Consultants will prepare a detailed, market-specific business plan for the bank to optimize the probability of corporate bank account approval.
Vietnam banking system
- Following the creation of the State Bank of Vietnam in 1976, the country’s banking system began to increase in number of participant institution. Today, the country boasts 43 commercial banks comprising a mix of local State-owned banks, local partially state-owned banks, fully foreign owned banks, multiple branches and representative offices of foreign banks.
- There are 8 fully state owned banks and 5 fully foreign owned banks;
- Some of the more renowned international banks include the Vietcombank, Societe Generale, HSBC and Standard Chartered bank;
- Most international and several local banks offer an excellent range of corporate and personal banking products including multiple currencies, internet and telephone banking, checking accounts, saving accounts, debit and credit cards, fixed term deposit and wealth management services;
- In some cases, international banks in Vietnam also offer poor online banking and customer service. Therefore, Healy Consultants recommends that all of its Clients opt for either of the two largest local banks (VietinBank and Vietcombank) when incorporating a new structure.
Healy Consultants services
- Healy Consultants bank account opening team can open the corporate account within 4 weeks and obtain internet banking approval within the subsequent 3 weeks. Our fees for this service as part of new company formation amount to US$2,450;
- Following submission of quality corporate bank account opening set and consequently bank account approval, the preferred Vietnamese bank will directly and independently email our Client the corporate account number;
- Most Vietnamese banks are interested and seek to provide finance to local companies if the following conditions are met i) a detailed business plan; ii) availability of security; iii) experience of the business owners iv) the last 3 years’ audited financial statements v) a realistic feasibility study and vi) project strength and weaknesses analysis (SWOT);
- Healy Consultants Group PLC also assists our Clients to secure trade finance services including i) bank guarantees; ii) letters of credit iii) finance against trust receipt and iv) documents against payment and against acceptance;
- Healy Consultants will help our Clients to obtain corporate finance in the form of a loan, overdraft or simply preferential credit terms.
Foreign exchange controls
- The State Bank in Vietnam government imposes foreign exchange controls on the transfer of funds in and out of the country by resident individuals and companies;
- Transactions between residents need to be engaged only in VND, unless specifically approved on a case-by-case basis. This said, foreign currency calculation can be used for accounting purposes;
- In many cases fund transfers in and out of the country, initiated by both residents and non-residents will require registration of the foreign company with the State bank of Vietnam, which may delay transactions with more than 5 business days after initiation.
- Both resident and non-resident companies can hold international corporate bank accounts in any currency;
- Non-resident shareholders can freely repatriate sales proceeds of their stake in a Vietnamese resident company, but often certain requirements need to be met;
- Loans taken from foreign banks will require resident companies to obtain prior permission from the Reserve bank. Approvals are usually granted easily.
Engagement project plan
During the company formation and corporate bank account opening in Vietnam, Healy Consultants will follow below established project plan with 15 steps:
Vietnam bank account opening engagement plan
Offshore banking alternatives
- As a great alternative to local Vietnamese corporate bank account, Healy Consultants recommends an international corporate bank account with a top tier bank outside of Vietnam. Examples include Singapore, Hong Kong, Germany, Canada, Ireland, Australia, or Dubai;
- Alternative banks recommended by Healy Consultants will be top tier banks in South-East Asia region with excellent internet banking services. Example of our global banking partners include DBS, UOB, OCBC, ICICI;
- Healy Consultants can open a local business bank account for a foreign company. Many of our Clients use a local business bank account to receive payments and pay suppliers without the need to register a local company. Our fee for this service is US$4,950.
Frequently asked questions
Is it required to open a capital account to open a company in Vietnam?Yes, a capital account is required prior to the start of Vietnam company formation procedures. Provision of such account is included in Healy Consultants’ Vietnam company formation services.
What is a capital account?A capital account is an investment account opened by the parent company of a Vietnam subsidiary. Such account must be opened before company formation in Vietnam.