Vietnam’s remarkable economic growth in the past 20 years has attracted a large number of foreigners. Expats, retirees or investors, the number of foreigners coming into Vietnam every year is consistently increasing. To keep up with the demand, the Tourism Advisory Board proposed 5–10 year "golden," investor, and talent visa programs in a letter to the Prime Minister on March 25.
Living In Vietnam
While official figures are hard to come by, as of 2022 there are approximately 100,000 expats living in Vietnam. This number is based off the number of permanent residents with work permits, so the actual number (including children, spouses and unemployed expats like retirees and investors) is likely higher.
Economic development has been in large part responsible for driving this growth, providing opportunities for foreigners and companies to relocate to Vietnam.
Some neighbourhoods like Thao Dien and Phu My Hung in HCMC have become hotspots for expats, offering facilities and services in English and catering to Western tastes. Among nationalities, Chinese, Koreans, Japanese, Australians, Americans and French constitute most of the expat population.
For these people, Vietnam is an extremely attractive destination to do business. A combination of low cost of living, high quality of life and a dynamic economy are a recipe for success. Job opportunities are plenty, especially in the finance, business and education sectors with highly competitive salaries (particularly considering the cost of living).
On top of this, Vietnamese healthcare is generally quite affordable and high-quality (important for retirees), crime is low and internet connectivity/ mobile coverage is excellent, allowing for both classic office jobs and virtual/ remote work. For those with children, the quality of education in both Vietnamese and international schools is excellent.
Visas And Residency
There are however some pain points for foreigners moving to Vietnam. Chief among them are visa issues. Work permits allow for foreigners to reside freely in Vietnam for up to 2 years, but conditions are highly specific and the permits are generally only attributed by major companies. Investor visas are also available, granting residency from 1-5 years based on the amount of capital invested. This is however once more subject to governmental approval, with some fields of investment deemed unnecessary.
Temporary residence cards, allowing foreigners to reside in Vietnam for up to 5 years, are easily renewable. However, eligibility is subject to strict criteria, mainly having a work permit, investor visa or being a family member of a TRC holder.
This results in many expats having to renew their 3-month visa regularly, which can only be done from outside the country and usually takes between 3-7 days to be approved. These “visa runs” are a major inconvenience for expats, incurring additional travel costs and making living in Vietnam administratively difficult.
A Solution On The Horizon?
On March 25, the Vietnamese Tourism Advisory Board submitted a proposal to Prime Minister Pham Minh Chinh to introduce 3 new types of visa: Golden, Investor and Talent.
The Golden visa is for “general long-term stays”, thought to be targeted towards retirees, granting 5-10 years residency.
The Investor visa is an upgrade to the current investor visa system, doubling the residency to up to 10 years and providing a path to citizenship.
Finally, the Talent visa is targeted towards skilled professionals in rapidly growing sectors like manufacturing. This visa grants up to 5 years residency with a streamlined renewal process.
This is an encouraging development, but as of yet details have not been announced to the public or press. We spoke to long-time residing expats about their hopes for this new visa program.
Yves arrived in Vietnam in 2008, and spent a decade in hospitality before setting up his own motorbike tour business. He’s lived in Ho Chi Minh City for almost 20 years. When asked about his hopes for the new visa system, he explained : “We’ll have to wait for specifics to be announced. Since the pandemic the existing Investor visa has been harder and harder to obtain.”
An investor confided: “Government reform happens slowly. The “Streamlining Revolution” has given me hope, but we shall have to wait and see how this program is implemented. If done correctly, it could be a massive boost for investment and make a lot of people’s lives easier.”
Indeed, the lack of specific details concerning the new visa program has made it hard for investors, retirees and “talented workers” to envision a stable future in Vietnam. However, a trend of economic diversification, government reform and infrastructure development paints a bright future for foreign investment in Vietnam.