Vietnam Business Visas vs. Work Permits: What Foreign Founders Need to Know

Exploring work, business, and investment opportunities in Vietnam is an exciting adventure, but it does come with some important rules—especially around Vietnam visas and Vietnam work permits. Whether you’re a foreign business owner, investor, or someone hoping to work in Vietnam, getting a good handle on these basics will make your journey much easier and hassle-free - and you're in the right place. This is the guide for you!

What is a Visa for Vietnam?

Let's start by addressing the most basic question. Visas for Vietnam are essentially your permission to enter Vietnam, issued by the Vietnamese government (through Vietnamese Embassy or Consulate - or more recently, only), and it dictates the purpose and duration of your stay. 

You can even get one while already in a third country, or from within Vietnam under certain circumstances—for example, if you need to extend or renew your visa due to expiring stay, change your visa type (such as switching from a tourist to a business visa if you obtain a job), or if you are invited or guaranteed by an organization, employer, or a Vietnamese citizen for work, investment, or family reasons. 

These processes are handled through Vietnam’s Immigration Department and allow you to remain in the country legally without needing to exit and re-enter.

What are the key Visa types for Business and Investment in Vietnam

Vietnam offers various visa options tailored for different business and investment needs. Here are some of the most relevant ones for foreign workers and investors:

• DL (Tourist visa): Generally for tourism, valid for up to 90 days. This is mostly the  most commonly used type of Vietnam Visa for digital nomads, but it is technically illegal to be working on this type of visa.
• HN (Meetings/Conferences): For attending meetings or conferences, valid for 90 days.
• LD (Working in Vietnam):
• • LD1: For those eligible for a work permit exemption, valid for 2 years.
  • LD2: For those working in Vietnam with a work permit, valid for 2 years.
• LV (Working with specific organizations):
• • LV1: For working with central and provincial government agencies, ministries, etc., valid for 1 year.
  • LV2: For working with social organizations, socio-political organizations, and the Vietnam Chamber of Commerce and Industry, valid for 1 year.
• DT (Investor visa): This is crucial for investors, categorized by the amount of capital invested:
• • DT1: For investments over VND 100 billion or in prioritized sectors/areas. Valid for 5 years and can lead to a Temporary Residence Card (TRC) valid for up to 10 years.
  • DT2: For investments between VND 50 billion and VND 100 billion or in encouraged sectors/areas. Valid for 5 years and can lead to a TRC valid for up to 5 years.
  • DT3: For investments between VND 3 billion and VND 50 billion. Valid for 3 years and can lead to a TRC valid for up to 3 years.
  • DT4: For investments less than VND 3 billion. Valid for 1 year, but does not qualify for a TRC.
• DN (Business visa):
• • DN1: For working with entities that have legal status in Vietnam, valid for 1 year.
  • DN2: For promoting services, establishing commercial presences, or conducting activities under international agreements, valid for 1 year. This is commonly used for business-related activities like meetings or market research.
• EV (Electronic visa): Valid for 90 days.

We've written about this extensively. Read more about the different VISA types available to foreigners in Vietnam!

What is a Vietnam Work Permit? 

Let's now move on to the next biggest questions that most foreigners usually ask: What is a Vietnam work permit?

At it's simplest, the work permit is a document issued by the Vietnamese government that allows foreigners to work lawfully in Vietnam. It's a mandatory regulation for most foreign citizens seeking employment in the country. It includes crucial details like your full name, passport number, date of birth, nationality, the name and address of your employer, and your job position.

To be eligible for a work permit, you generally need to be

• at least 18 years old
• have full legal capacity
• possess suitable qualifications and experience
• be in good health
• not have a criminal record. 

Further it must be highlighted that specific requirements for experts, managers, executives, and technical workers vary based on degrees, experience, and practice certificates.

Key Difference Between Business Visas, Investor Visas & Work Permits in Vietnam

This is where it can get a bit confusing for first-timers, but it's a critical distinction.

• Business Visa (DN visa): This visa is for business-related activities such as attending meetings, signing contracts, negotiating, or conducting market research. While it allows you to engage in these activities, a DN visa does NOT authorize employment. 
• Investor Visa (ĐT Visa): This type of Visa is specifically for investing in Vietnam or managing a company. While it allows you to manage your investment, it also doesn’t authorize general employment unless combined with a work permit. Investor visa holders (especially ĐT1–ĐT3) can apply for a Temporary Residence Card (TRC) for longer stays.
• Work Permit: A work permit, on the other hand, is specifically what you need to legally undertake employment in Vietnam for more than three months. It's a formal authorization to work for a Vietnamese entity.

Think of it this way: an investor visa allows you to reside in Vietnam if you own or invest in a business, while a business visa lets you visit for business activities such as meetings or market research, but a work permit lets you legally work for a local company. 

While foreigners entering on business visas sponsored by the employer must collect them at a Vietnamese embassy or consulate, they are distinct from the work permit process for actual employment.

A work permit is often a prerequisite for obtaining a longer-term working visa (like LD2) or a Temporary Residence Card (TRC). A TRC allows you to enter and exit Vietnam without a visa within its valid terms, and it's issued by immigration agencies, typically valid for 1 to 10 years depending on the visa type.

Which Type of Vietnam Visa Do Foreign Founders Really Need?

If you're a foreign founder looking to invest and set up business in Vietnam, the ĐT (Investor) visa is typically your primary choice. These visas are specifically designed for individuals investing in Vietnamese businesses.

The ĐT visa allows for broader flexibility, including participation in company management, investment expansion, and strategic planning. The higher your investment, the longer the visa duration and the TRC validity you can obtain. 

While the DT visa allows participation in management, if a founder is also taking on a specific "working" role that goes beyond general management or investment oversight (e.g., as a specialized expert or technical worker within the company), they might also need to consider the requirements for a work permit or an LD visa. 

For example, an F&B business owner actively working as a head chef or operations manager would require a work permit to perform these specialized duties. 

Similarly, a services company owner providing technical consulting or hands-on project management must also obtain a work permit or LD visa to legally work in Vietnam. 

The ĐT visa itself primarily covers ownership and high-level management functions, not specialized employment roles. Otherwise, ĐT visa itself is already designed for the investment and management aspect.

Risks of Misuse

Compliance with Vietnam's visa and work permit regulations is non-negotiable. Misuse or non-compliance can lead to serious consequences for both the individual and the employer.

Risks for Foreign Workers

• • Fines: Foreign workers caught without a valid work permit or exemption certificate, or using expired documents, face fines ranging from 15 to 25 million VND (USD 588 – 980).
  • Deportation: In addition to fines, you will be forced to leave the country or deported.
  • Future Entry Bans: Overstaying a visa can result in future entry bans.

Risks for Employers

• • Fines: Employers who hire foreign workers without the necessary permits or exemption certificates face much steeper fines, ranging from 30 to 75 million VND (USD 1,000 – 3,000), depending on the number of workers involved.
  • Legal Consequences: Engaging in work without appropriate permits leads to legal consequences for both the foreigner and the sponsoring entity.

Tax Implications

A critical consideration is the tax implications of your visa status. If you stay in Vietnam for 183 days or more within a 12 month period, you are considered a tax resident and become subject to worldwide income tax. Non-tax residents are only taxed on Vietnam-sourced income, but tax obligations can still be significant.

Best Practices for Vietnam Visa Compliance

• Start Early: The processing time for work permits alone can take 1.5 to 2 months. Employers are advised to begin the process at least 30 days before the foreign employee is expected to start. It's even recommended to start researching and preparing documents three to six months before your anticipated start date.
• Employer's Responsibility: Remember, your employer is responsible for submitting the work permit application on your behalf.
• Accurate and Complete Documentation: Common reasons for rejection include inaccurate information, invalid documents (like criminal records older than 6 months or health certificates not meeting requirements), or missing documents. Double-check everything!
• Acknowledge Local Hiring Priority: Vietnamese companies must publicly recruit for a position within Vietnam for at least 30 days before recruiting a foreign employee. Foreign workers are generally approved only if local hires cannot meet the business requirements.
• Consider Exemptions: Certain situations might exempt you from needing a work permit, such as working for less than 30 days (up to 3 times a year), being an intra-company transferee, or being a significant investor. If you're exempt, you'll need a work permit exemption certificate, which is valid for up to 2 years.
• Seek Expert Guidance: Navigating these regulations can be complex. Working with legal experts or professional services firms can help you avoid unnecessary complications and ensure full compliance.

Understanding and following Vietnam’s visa and work permit regulations is essential for any successful business or career venture in the country. Whether you're investing millions or just starting your entrepreneurial journey, staying compliant means staying secure. 

Knowing which visa applies to your situation and whether you need a work permit can save you time, money, and future complications.

Make informed decisions, consult local experts, and take the first step toward building a compliant and rewarding presence in Vietnam.

Ready to start processing your Vietnam’s Visa & Work Permit with Confidence?

Don’t leave your Vietnam venture to guesswork. At United Consulting, we specialize in helping foreign investors, business owners, and skilled professionals secure the right visas, work permits, and legal compliance—without the stress or confusion.

Whether you're setting up your first business, expanding operations, or just want peace of mind before you hire, our experienced local team is here to guide you every step of the way.

Schedule your FREE consultation today and let United Consulting turn red tape into green lights.