Local laws and regulations in Vietnam: Expat work permit requirements. Foreign property ownership laws. Motorbike license regulations. Visa and residency permits. Business registration processes. Taxation rates and obligations. Contract law criteria. Import/export restrictions. Environmental compliance standards. Labor laws and rights.
Expat work permit requirements
To obtain a work permit in Vietnam, foreigners must be at least 18 years old, have full civil act capacity, adequate professional qualifications and experience, a good physical condition, and no criminal record. They must also provide documents such as a health examination certificate, criminal record, and proof of their professional status, with the application submitted through their employer or a designated service center. For more detailed information, you can visit the Vietnam Work Permit page, which provides comprehensive guidance on the requirements and procedures involved in securing a work permit.
Foreign property ownership laws
Foreigners in Vietnam have the opportunity to own various types of residential properties, such as condominiums, villas, and townhouses, though there are specific limitations to consider. Notably, there is a 30% cap on condominium units in a single building and a cap of up to 250 houses permissible in an administrative area. The ownership term generally spans 50 years, with the possibility of renewal for an additional 50 years. For those married to Vietnamese citizens, ownership can be indefinite. To better understand these regulations, one can explore Unlocking Property Ownership: A Comprehensive Guide To Vietnam's Foreign Property Laws, which provides a detailed overview of the governing laws and procedures.
Motorbike license regulations
In Vietnam, riding a motorbike with an engine capacity over 50cc requires a Vietnamese Driving License (A1 for under 175cc or A2 for over 175cc). Foreigners cannot use their home country licenses, but can convert their licenses or obtain an International Driving Permit (IDP) under the 1968 Convention to ride legally.
Visa and residency permits
To enter Vietnam, foreigners must have a valid passport with at least six months' validity and a visa, or pre-approval for a visa on arrival, with options including e-visas that are valid for up to 90 days. For residency, temporary and permanent residence permits are available, with specific requirements such as proof of employment, local address, and financial means, and permanent residency typically requiring at least three years of consecutive temporary residence. For more information, you can visit the International Travel Country Information Pages for updated details and processes.
Business registration processes
Business registration in Vietnam involves five key steps: pre-registration requirements, including obtaining an Investment Registration Certificate, the online business registration application, obtaining a Certificate of Business Registration, post-registration procedures such as public announcement and tax registration, and compliance with opening a bank account and adhering to Vietnamese law. For a detailed guide on the registration process, consider exploring YouTube which provides various resources and video tutorials related to business registration in Vietnam.
Taxation rates and obligations
In Vietnam, personal income tax rates are progressive, ranging from 5% to 35% based on monthly taxable income, while non-residents are taxed at a flat rate of 20%. Meanwhile, corporate income tax is generally set at 20%, but this rate can be higher for specific industries such as oil and gas and mineral resources. Additionally, value-added tax (VAT) rates in Vietnam are structured at 0%, 5%, and 10%, which is important for Vietnamese Taxation considerations.
Contract law criteria
In Vietnam, a contract must fulfill four essential conditions to be effective: the parties must have civil act capacity, the purpose and contents must not violate legal provisions or social ethics, the parties must act voluntarily without falsity, mistake, or deception, and the contract must follow the stipulated form if required by law. Additionally, the contract's content must include key factors such as the object, quantity, price, time limit, rights and obligations of the parties, and liability for breach of contract. These elements ensure a comprehensive legal framework for contractual agreements, as elaborated in the Short Introduction of Contract Law in Vietnam, providing clarity and structure to the contracting process.
Import/export restrictions
Vietnam prohibits the importation of items such as weaponry, ammunition, explosives (excluding industrial explosives), military technical equipment, assorted fireworks, sky lanterns, used consumer goods, and certain publications and radio equipment. Additionally, specific goods like pharmaceuticals, biological products, and certain cosmetics require government permission and adhere to strict regulations and inspections. Detailed information about these restrictions can be found on the Vietnam Prohibited and Restricted Imports page on the Trade.gov website, which serves as a crucial resource for understanding the legal landscape of importation in Vietnam.
Environmental compliance standards
In Vietnam, environmental compliance standards are governed by the Vietnamese National Standard (TCVN) and National Technical Regulation (QCVN), with QCVNs being mandatory and focusing on safety, sanitation, health, and environmental protection. The country has also introduced the New Law on Environmental Protection effective from 2022, which includes a consolidated Environmental License, stricter waste management, and GHG emission regulations.
Labor laws and rights
Vietnam's labor laws, as outlined in the amended Labor Code effective from January 2021, regulate various aspects crucial for both employers and employees. These include working hours, capped at 48 hours per week and 8 hours per day, as well as overtime, which should not exceed 12 hours a day, 40 hours a month, or 200 hours a year. The code comprehensively addresses employment contracts, covering both indefinite and definite terms, and provides clear guidelines on termination and severance pay. Moreover, the right to form independent trade unions is recognized, which marks an important step in protecting workers' rights. The laws further encompass areas like social insurance, health and safety, and protections against discrimination and forced labor, ensuring alignment with international labor standards. For more detailed insights, the Vietnam Briefing's guide on Labor Law elaborates on these regulations and their implications for businesses operating in Vietnam.