On Sunday March 19th, 2023, the 25th Vietnam Business Forum 2023 was held in the Vietnamese city of Hanoi. During the Forum, Minister Dung announced an amendment and supplement to Decree 152 on foreign workers in Vietnam. The National Government, through his ministry, has already cleared that the amendment will take effect in the second semester of the year.

Both the amendment and supplement will have the effect of easing work permit issuance restrictions as well as a predicted decentralization for related agencies. The categories that will benefit most from the new regulation will be foreign experts and managers, but it will still have an overall impact on the simplification of visa regulations for foreigners. Foreign labor will thus be encouraged, particularly with the aim of attracting overseas talent, investors, and professionals. With the pandemic finally behind us, the country is attempting to restart the economy by opening to a more international market.

Previously, the European Chamber of Commerce in Vietnam, through the voice of its Chairman, Mr. Gabor Fluit, had expressed concern with regards to the local regulation, stating that, due to several violators, the rules have been gradually tightened, and hoping for a gradual relaxation of the relevant policy.

The current policy, in fact, has been perceived as far too strict for foreigners who have been investing or working in the country for years, that have seen their work permit renewal rejected due to minor bureaucratic issues or have waited as long as up to 3 months to receive a new one - not to mention, certain supplementary procedures for which the timing may extend up to 6 months. The inefficiency of visa agencies has also been the target of criticism, pushing investors to relying on more expensive solutions for their own and their employees’ visa issues, such as seeking lawyers’ assistance.

Another topic touched upon during the Forum is the inclusion of a minimum Global Corporate Tax to be applied in Vietnam, which is expected to be provided by law in the near future. Several countries may also seek to impose a minimum Global Corporate Tax of 15%, starting from next year.

According to Dang Ngoc Minh, Deputy Chairman of the General Department of Taxation, Vietnam has maintained a close eye on the activities of other nations in this respect and the Vietnamese Government has formed a working group comprised of officials from ministries, agencies, and businesses to assist foreign enterprises.

Firstly, based on the framework of the Organization for Economic Cooperation and Development (OECD), Vietnam will impose the lowest worldwide Corporate Tax on enterprises. In the medium term, the Ministry of Finance will propose enacting favorable tax policies to fund labor training courses while also encouraging green growth and environmental conservation.

Prime Minister Chinh stated that the Government will issue appropriate regulations based on practice and lessons learned from other nations’ experiences this year and open the path for foreign enterprises to operate in Vietnam and give more to the country without jeopardizing their advantages. 

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