What happens exactly with the DT visa/TRC if the investor transfers his project to another person?

Legal situation:

Hello, my name is M. I have a question regarding the investment visas of my Client. If he has a DT visa / TRC, based on his ownership of a foreign-owned LLC in Hoi An. And he sells his ownership to somebody else. What happens exactly with the DT visa / TRC?

For example:

1) Does the investor need to give back the visa / TRC?
2) Does the visa / TRC become automatically invalid?
3) Does the investor get some time to look for a different visa or leave Vietnam?
4) And from which exact moment does this happen?

Thank you for your feedback.

FDVN's Opinion:

Dear Mr. M.,

Thank you for your message. Regarding your request, we have the following opinions:

According to Article 6 of Law on Entry, exit, transit, and residence of foreigners in Vietnam 2014, amended and supplemented in 2019 on the revocation, invalidation of entry/exit/residence permits issued by Vietnamese competent authorities, “any foreigner that violations regulations of Clauses 3 through 6 Clause 5, Clause 3 Article 21, Point b Clause 2 Article 44 of this Law shall have his/her entry/exit/residence permit revoked.” It is stipulated in Point b Clause 2 Article 44 of this Law that: “Foreigners that enter, leave, transit through, or reside in Vietnam are obliged to engage in activities in Vietnam following the stated purpose of entry.”

Thus, in this case, due to the investment project transfer, the Client is not the investor of that project anymore. That means the TRC/DT visa is no longer effective.

Besides, it is stipulated in Point e, Clause 2 of Article 45 of this Law on the rights and obligations of inviting entities that: “Notify immigration authorities in writing of the cases in which foreigners granted entry/exit/residence permits no longer wish to be sponsored during their temporary residence period in Vietnam, and cooperate with competent authorities in requesting such foreigners to leave Vietnam.”

Thus, the company must send a written notice to the immigration authorities to terminate the validity of the TRC/DT visa of the Client who is not the investor of the project anymore.

Regarding repurposing the visa of an individual, the visa cannot be repurposed, except for cases below:

a) He/she presents a document proving to be an investor or a representative for a foreign organization investing in Vietnam as per the law of Vietnam;

b) He/she presents document proving his/her relationship with person inviting or sponsoring in terms of parents, spouse, children;

c) He/she is invited or sponsored by agencies or organizations and presents work permit or confirmation of eligibility for work permit exemption according to labor laws;

d) He/she makes entry by electronic visa and presents work permit or confirmation of eligibility for work permit exemption according to labor laws.

In case the Client repurposes visa as mentioned above, the Client shall be issued with a new visa with a number and time limit suitable with the new purpose.

So, the Client should repurpose the visa before the date of sending a notice to terminate the validity of the visa to the immigration authorities.

On the other hand, if the Client does not repurpose his/her visa or he/she doesn’t fall into the cases to have a visa repurposed, he/she must exit from Vietnam with an exit visa after sending a notice to terminate the validity of the visa to the immigration authorities.

Hope that this message is useful to you.

Bùi Trần Thùy Vy - FDVN Law Firm

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