February 22, 2017

Recent update on regulations relevant to foreigner work permit and residence

Decree on piloting granting e-visas for foreigners entering Vietnam
The Government has issued Decree No. 07/2017/NĐ-CP defining procedures on piloting granting e-visas for foreigners entering Viet Nam (“Decree 07”) with aim to promote tourism and exchanges between Vietnamese and international citizens. Decree 07 is valid from 1st February, 2017.

Guidance on online reporting of temporary residence of foreigners
On the date of 28th December 2016, Circular No. 53/2016/TT-BCA (“Circular 53”) has been issued. The Circular will come into effect since 15th February, 2017. It provides that foreigners can now report on temporary residence online.

Circular on defining foreign workers being internally reassigned in the companies which engage in 11 service industries in the Vietnam’s WTO commitment are exempted from applying for the work permits
MOIT has issued Circular No. 35/2016/TT-BCT dated 28th December, 2016 (“Circular 35”). Circular 35 will come into effect since 10th February, 2017. Circular 35 provides detailed basis and legal papers on defining foreign workers being internally reassigned in the companies which engage in 11 service industries in the Vietnam’s WTO commitment are exempted from applying for the work permits.

Draft Decree on compulsory social insurance for occupational accidents and diseases
MOLISA is drafting a decree (“Draft Decree”) on compulsory social insurance for occupational accidents and diseases, in which the insurance rate is proposed at 0.5% of a company’s total payroll fund, compared to the current 1%. Therefore, the new premium rate for occupational accidents and diseases which will be lower than the current rate and applied in a short-term period is completely feasible with an aim of reducing costs for enterprises.
The Draft Decree should be issued as soon as possible to support local firms. It would take effect 45 days after signing, and be applicable by the end of 2019.
All the comments should be sent to MOLISA by 6th March, 2017 

Please refer to this file for the full report.

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