Temporarily Stop Granting Work Permits to Foreigners Originating from Infected Area Because of Covid-19

An outbreak of acute respiratory infections caused by a new strain of Coronavirus (nCoV) was first detected in Wuhan City, Hubei Province, China in December 2019. Up to now, the disease has spread to many cities in China and more than 20 countries in the world including Vietnam. Facing new complicated movements of the acute respiratory disease epidemic caused by a new strain of Coronavirus (Covid-19), on February 2nd, 2020, the Vietnam Minister of Labor, War Invalids and Social Affairs issued Official Dispatch No. 01/CD-LDTBXH on strengthening measures to prevent and control Covid-19 epidemics through the tighter control of immigration process, including the grant of visa, work permit, temporary residence card for foreigners originating from infected area.

Set up company in Vinh Long 

Set up company in Binh Duong

Accordingly, the Ministry of Labor, War Invalids and Social Affairs shall propose the Employment Department and the Department of Labor, War Invalids and Social Affairs, the Management Boards of industrial parks, export processing zones and economic zones of localities to temporarily stop granting work permit for foreign workers from epidemic areas during the time when Vietnam declared the disease. This affects the entry into Vietnam of foreign workers who have not yet been granted a work permit under the law. According to Article 10 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam 2014; Point c Clause 4 Article 1 of the Law on Entry, exit, transit and residence of foreigners in Vietnam amended in 2019; Clause 16, Article 1 of the Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam amended in 2019 foreign workers to be granted LD1, LD2 visas and temporary residence cards of the same type, should be issued with a work permit in Vietnam. In addition, foreign investors in Vietnam are also affected, because the temporary stoppage of granting of work permits will also affect the application for certification of foreign workers’ eligibility for exemption from work permit for investors, it also affects the foreign investor’s temporary residence card application.

In addition, it is required that enterprises and organizations employing foreign workers to temporarily stop accepting workers from China returning Vietnam after Tet holiday to work and foreign workers moving to endemic areas during the Covid-19 epidemic announcement. In case of having received such, the enterprise must report the list of employees who have just returned to Vietnam from China with the necessary information as required, carry out isolation measures at places of residence and workplaces under the guidance of the health authorities, and at the same time monitor and examine health within 14 days from the date of entry into Vietnam.

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Transfer of Investment Projects in Vietnam

Under the current Law on Investment, investors are entitled to transfer part or all of the project to another investor when satisfied the specific conditions and conducting to procedure of project adjustment under the regulation of law.

The conditions of project transfer

- The project is not terminated in the cases as prescribed in Clause 1 Article 48 of Law on investment;

- Investment conditions applied to foreign investors are satisfied in case the foreign investor receives a project of investment in conditional business lines;

- Regulations of law on law, real estate trading is complied with if the project transfer is associated with transfer of land;

- Conditions in the Certificate of investment registration or relevant regulations of law are complied with.

Preparation of dossier

- A written request for permission for project adjustments;

- A report on the project’s progress up to the time of transfer;

- The project transfer contractor an other document with equivalent legal value;

- Copies of the ID card or passport (if the investor is an individual) or Certificate of Enterprise Registration or another document with equivalent legal value (if the investor is an organization);

- Copies of the Investment Registration Certificate or decision on investment guidelines (if any);

- Copies of the BCC contract (for BCC projects);

- Copies of one of the following documents of the transferee: financial statements of the last 02 years; commitment to provide financial support by the parent company, commitment to provide financial support by a financial institution, the guarantee of transferee’s financial capacity, documents describing the transferee’s financial capacity;

Order and procedure

- Investors submit the dossier at Department of Planning and Investment (or Management of Economic Zone or High-tech Zone);

- Within a period of 10 working days from the date of receipt the complete and valid dossier for an investment project operating under an investment license and not subject to decision of investment policy (or 28 working days from the date of receipt the complete and valid dossier for an investment project which is subject to investment decision of the provincial People’s Committee; 47 working days from the date of receipt the complete and valid dossier for the investment project subject to the decision of the Prime Minister), the competent authorities consider and decide to adjust the investment registration certificate to the investor transferring the project.

Before transferring an investment project, investors need to evaluate the legal situation, apart from the financial, personnel, and other key issues of the project, which are subject of the transfer. Therefore, to ensure effective transfer, investors often engage law firms with highly qualified lawyers in Vietnam to conduct M&A legal due diligence related to the legal documentation of the owner, capital contribution of the shareholder or member, tangible assets (land use rights, plant and machinery, equipment, etc.) and invisible assets (including industrial property rights), licenses, contracts or transactions of great value, taxes and other legal risks such as litigation or disputes which could significantly impact the project..

The transfer of an investment project is an administrative procedure with a state agencies that is only smooth when the parties reached agreements. In fact, the transfer of the investment project’s timeline depends on the appraisal and evaluation process of the parties involved in the project.

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US Investors Set up Business in Ho Chi Minh City

United States (US) businesses are expecting to pour investment capital and set-up business in Ho Chi Minh City(HCMC) in the near future, when Vietnam and the US are members of the Trans-Pacific Partnership agreement (TPP).

Statistics from the Department of Planning and Investment of HCMC showed that in 2015, the city has attracted 26 investment projects from the US with a total capital of approximately 135.4 million USD. In the first 2 months of 2016, the US has invested an additional of 4 new projects with total capitals of 1.56 million USD. It is forecasted that after TPP takes effect, the number will increase exponentially.

The industrial zones in HCMC are attracting the most investment within three years. Currently there are more than 300 projects worth more than 600 million USD. With the launching of TPP, the city hopes to receive a new wave of investment from US businesses. The efforts to reform the city’s administration procedures are creating favorable environment for US businesses to increases investment in HCMC.

According to the representative of the US Consulate in HCMC, diplomatic relation between Vietnam and the US is getting better, creating conditions and opportunities for US investors to come and set up business in HCMC. As recognized by the American Chamber of Commerce in Vietnam (Amcharm), businesses from the 2 countries feel very excited after exploring the investment environments of each other.

According to the Amcham’s representative, the promotion of the free trade agreements and especially TPP is bringing Vietnam and the US to the center of trade cooperation. It is reflected positively in 2015 with growth rate reached 45 billion USD in terms of sales, increased by 20% compared with 36 billion USD in 2013. Currently, Vietnam is also the leading countries in ASEAN on trade balance with the US when Vietnam accounting for 25% of export turnover of the area and this figure will continue to increase in 2020.

According to representatives of the Department of Planning – Investment in Ho Chi Minh City, Vietnam American investors to increase mainly in the field of real estate, banking, services, processing technology. This is a positive signal for bringing high-income jobs for local workers. The goal of the 2020 Vietnam brought exports to the US increased by 300 billion dollars.

According to representatives of the Department of Planning and Investment of Ho Chi Minh City, investment from the US to Vietnam increased mainly in the field of real estate, banking, services, processing technology. This is a positive signal because it brings high-income jobs for local workers. The goal of Vietnam is that till 2020, export turnover to the US will increase by 300 billion USD.

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Vietnam Expects to Attract High Quality Capital Flow from Sweden

The interest of Swedish investors is opening the future for a new wave of investment from this country to invest in Vietnam.

Although being one of the earliest investor communities present in Vietnam, it is not until recent years that the names of enterprises from Sweden really caught the attention.

If before, when talking about Swedish investment, one could know ABB Group, a corporation established in Vietnam since 1993, which has a factory and focuses on 4 main areas which are electrical products, robotization, automatic technology and power grid. Or another case is Electrolux, Ericsson…

Now, with the rapid opening of the domestic market, the brands from Sweden have become more and more familiar. Referring to Sweden, consumers can now spot famous and familiar brands such as Skype voice and messaging software, H&M fashion brands, IKEA furniture, and Tetra Park in the industrial sector with milk and soft drinks packaging products…

And it is impossible not to mention a brand that is considered a symbol of this country, which is the luxury car brand Volvo. Only started to enter the market of imported luxury cars in Vietnam in recent years, but this brand has quickly attracted the great attention of the middle class in the country.

According to the Swedish Ambassador to Vietnam, Volvo is a symbol, or an important milestone in the promising relationship between Sweden and Vietnam. Although trade or investment turnover between the two countries is still modest, it still increases steadily, similar to the interest of Swedish enterprises for investment and production in Vietnam.

The rapid increase in brands or capital inflows from this Nordic country is even more apparent when looking at statistics.

If the third quarter of 2017, accumulated investment from Sweden into Vietnam only reached over 100 million USD, with Tetra Pak’s new factory with scale of 110 million USD, this capital doubled at the end of the year. Until now, after only one and a half years, this investment has reached 365 million USD, an increase of 3.5 times.

It can be seen that the investment picture of Sweden has changed dramatically and along with that, Vietnam is becoming more and more attractive in the eyes of this nation’s investors and businesses.

The presence of hundreds of large enterprises and leaders of the two countries, the presence of Victoria’s successor Princess, Prince Daniel, Royal Swedish representative at the Vietnam – Sweden Business Summit was held on May 7th 2019 is the clearest evidence for the potential for cooperation in investment and trade between the two countries.

The event was evaluated as a great opportunity for representatives of the top businesses and leaders of the two countries to exchange views, ideas, experiences and share best practices towards mutual benefits.

Speaking at the Conference, the Swedish Minister of Foreign Trade acknowledged there are many reasons to look for current trade and business opportunities in Vietnam, such as high economic growth, the growing middle class, the market opens through many free trade agreements, dynamic business ecosystems…

It is easy to see that Sweden’s investment has increased rapidly over the past time, but has focused heavily on the consumer sector. Therefore, with the appearance of 50 leading Swedish enterprises this time, Swedish capital will join more strongly in Vietnam in the fields of health, transportation, green production and start-up.

Vietnam is starting to embrace a new wave of investment in high-tech fields, areas of high added value and innovation.

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