New Visa Rules Make It Easier for Foreigners to Work, Invest in Vietnam’s Coastal Economic Zones

On November 25, the National Assembly (NA) of Vietnam passed amendments to its Law on Entry, Exit, Transit, and Residence of Foreigners that would allow visa-free entry into coastal economic zones, as well as enable visa status changes from inside the country. The amendments were approved with 83.6% of the vote and go into effect July 1, 2020.

The amendments stipulate that in order for a coastal economic zone to quality for the visa-free exemption, it must be separate from the mainland, possess clearly defined territory and boundaries, have an international airport, and must not compromise national security or national defense.

Of note in the amendments is the alternate phrasing “special administrative-economic unit” used to refer to areas affected by the new law. The phrase “special economic zone” (SEZ) is considered sensitive after nationwide protests broke out in June of 2018, in opposition to a Special Economic Zones (SEZ) law that was being considered before the NA. The law would have established SEZs in Van Don, Bac Van Phong, and Phu Quoc, but widespread concern that the SEZs would be overrun by Chinese investors prompted the NA to shelve the law.

Some Vietnamese have notedthat Van Don and Phu Quoc of the previously-shelved SEZ law both qualify for visa-free entry under the new amendments, sparking concerns that the government is attempting to circumvent popular opposition. Representatives of the NA themselves have expressedconcerns that opening up these areas to visa-free travel may pose a national security threat and have requested greater government regulation.

But Vo Trong Viet, chairman of the NA Committee on National Defense and Security, has argued that “the amendments would make it easier for foreigners to stay in Vietnam to learn about the market, and look for jobs and investment opportunities without wasting time and money on immigration procedures.”

Also included in the amendment is a stipulation allowing foreigners to change or renew their visa status while inside Vietnam, instead of having to leave the country entirely, as was previous practice. The amendment allows for visa changes by individuals in specific circumstances: “visitors who can prove they are investors or representatives of foreign organizations that make legal investments in Vietnam” and their family members, as well as foreign workers who receive job offers or enter with e-visas (provided they have the requisite work permit or work permit exemption).

Vietnam’s National Assembly, elected in 2016 and currently in its 14^th session, consistsof 496 members, 475 of which belong to the Communist Party (the remaining 21 are independents). Though largely considered a “rubber stamp” parliament due to a lack of public consultation and debate, discussions over pieces of legislation have increased in recent years, and the NA has begun to assume a larger political role in the eyes of the public. The NA meets twice a year to formally ratify laws, with individual members serving five-year terms.

Elections for the 15^th session of the NA are set to take place in 2021.