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New regulations in effect

- On November 10, Decree No. 78/2009/ND-CP of September 22, detailing and guiding the Law on Vietnamese Nationality, took effect.

The regulation requires Viet kieu (overseas Vietnamese), who still retain their Vietnamese citizenship under Vietnamese law before July 1, 2009, but hold no valid Vietnamese passports, to register for Vietnamese citizenship retention before July 1, 2014.

Foreigners applying for naturalization in Vietnam should have a good command of Vietnamese for their smooth integration into the Vietnamese community suitable to their living and working conditions, be currently residing in Vietnam and possessed of permanent residence cards granted by the police, and be able to make their living in Vietnam as guaranteed by concerned domestic entities. Particularly, leading scientists, economists, cultural activists or athletes may be exempt from some conditions for naturalization in Vietnam.

- From November 15, foreign-owned right-handed drive cars will be allowed to run on Vietnamese roads for maximum 30 days (or 40 days in force majeure circumstances) if they are intended to carry people and driven by foreigners with appropriate driver licenses, bear foreign number plates and possess valid technical safety and environmental protection inspection certificates granted by foreign authorities.

Under Decree No. 80/2009/ND-CP of October 1, these cars should move in a procession and follow other motor vehicles which lead the way within the prescribed road lane and to certain areas permitted by the Ministry of Transport.

Owners of these cars should file applications for the Ministry of Transport’s permits through their countries’ Vietnam-based diplomatic missions or consular offices or resident representative offices of their inter-governmental organizations and may obtain permits within 5 working days.

- From November 20, foreign experts of Vietnam-based ODA programs and projects and their dependants will get more tax incentives and preferences under Prime Minister Decision No. 119/2009/QD-TTg of October 1, which supersedes Decision No. 211/1998/QD-TTg of October 31, 1998.

For example, the new regulation entitles both foreign ODA experts allowed to stay in Vietnam for less than 183 days and those intended to sojourn for 183 days or more, instead of only the latter under Decision 211, to exemption from import duty or excise tax on certain articles they use in specified quantities.

While working in Vietnam, they are also exempt from personal income tax for their job payments. Their and their dependants’ Vietnam-based assets are free from acquisition, compulsory purchase or confiscation.

Other visa, foreign exchange, residence registration and travel preferences will be the same as those provided in the previous regulation.

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