NA approves extended US visa rights

The burdensome visa policy is currently a barrier to both investment and tourism
Photo: Le Toan

BowerGroupAsia Inc.’s managing director Nguyen Viet Ha said one of the many obstacles facing US investors in Vietnam is the government’s single-entry, three-month visa policy for American citizens. “Many investors often come to Vietnam three or four times a year, meaning that they have to conduct visa procedures on each occasion, creating lots of difficulties for them.”

“Vietnam’s increasing of the visa validity for American citizens to one year and with multiple-entry is a very positive move, which can help lead to more US investments and visitors into Vietnam in the time to come,” Ha told VIR. BowerGroupAsia Inc. is a US-backed investment consultancy firm, based in Hanoi.

New visa policy

Vietnam’s National Assembly last week issued a resolution on ratifying a diplomatic note on granting visas between the governments of Vietnam and the US. Under the note, Vietnam’s government will grant multi-entry, one-year visas to US citizens entering Vietnam for the purposes of attending workshops, travelling, personal affairs, or working with Vietnam’s organisations and businesses.

Similarly, Vietnamese citizens who wish to enter the US will also be granted multiple-entry, 12-month visas for the same purposes.

According to the resolution, the Vietnamese government and relevant agencies must complete all diplomatic procedures and begin granting multiple-entry, 12-month visas to the Americans as soon as possible.

In his document proposing that the National Assembly ratify the diplomatic note, newly elected State President Tran Dai Quang stated that over the past few years, the US side had asked Vietnam on several occasions to raise the visa validity for US citizens from the existing three months (single entry) to one year (multiple entry).

“They say that our visa policy has been causing difficulties for them in terms of obtaining a visa to Vietnam,” Quang said. “Meanwhile, the US has been granting multiple-entry 12-month temporary business/tourism visas to Vietnamese citizens who want to enter the US.”

The thumbs-up

Many National Assembly members have approved of the diplomatic note, saying that it was necessary to raise the American-oriented visas’ validity, as this would also be favourable for Vietnamese citizens entering the US.

“This move will help boost the two countries’ trade and investment co-operation,” said deputy Tran Quoc Khanh representing Hanoi.

“The new visa policy will help reduce the costs and time taken for US citizens entering Vietnam, especially for many Vietnamese people who have US nationality and are returning to Vietnam,” said deputy Hoang Thanh Tung from the southern province of Soc Trang. “The policy would also be suitable within the context of the Vietnam-US comprehensive partnership.”

Many US firms in Vietnam have also applauded Vietnam’s new visa policy, saying the multiple-entry one-year visa would enable US investors to save time and costs when entering Vietnam.

Sesto Vecchi, managing partner of US law firm Russin & Vecchi, told VIR that “Vietnam’s decision to issue multiple-entry, one-year visas to Americans is another solid indication of the growing co-operation between Vietnam and the US.

“Practically, the policy should immediately increase inbound tourism, and especially return visits. It also sends a valuable signal to American businesspeople, demonstrating Vietnam’s willingness to continue to ease policies that are seen as restrictive.”

Ta Dinh Duc, business manager of US company Intel Security in Vietnam, said that “The new visa policy is very good news for US investors, as they will find it more convenient to enter Vietnam”.

This sentiment was echoed by a representative from the US-backed maker of Coke in Ho Chi Minh City, who said that Vietnam’s new visa scheme for US citizens “will create fair treatment for entry between the two countries’ citizens”.

“During my company’s meetings with many other US firms, they suggested that Vietnam apply the same visa programme that the US is applying to Vietnam, otherwise they would not increase their presence in the country,” said the source, who declined to be named.

“The new visa policy is expected to help Vietnam attract more US investors, who currently have to travel into and out of the country many times to complete procedures for their projects here,” he added.

Nguyen Van Tuan, director of a travel company in Hanoi, also expected that the new visa scheme would help his company bring more US tourists into Vietnam.

“The number of US tourists tending to stay in Vietnam for more than three months is increasing. In addition to visiting Vietnam’s tourist spots, they are also seeking business opportunities,” Tuan told VIR.

According to Vietnam’s National Administration of Tourism, last year about 491,300 US tourists visited Vietnam, up 10.7 per cent on-year. The figure touched over 164,700 in this year’s first quarter, up 14.3 per cent on-year. The tourism body stated that the new visa conditions would help Vietnam attract more US tourists.

Proposal

The US community in Vietnam has asked the Vietnamese government several times to increase the validity period of American-oriented visas from the existing three months to one year.

At the Vietnam Business Forum in Hanoi late last year, a policy dialogue between Vietnam’s government and the private business community, Sherry Boger, chairwoman of AmCham in Vietnam, asked Vietnam’s government to extend the business/tourism visas for Americans from the existing three months (single-entry) to one year (multiple-entry).

Under Vietnam’s existing Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam becoming effective on January 1, 2015, US citizens that plan to visit Vietnam under the equivalent of a US B-1 or B-2 visa will receive visas that have, at most, a three-month period of validity, and a single entry only.

“This development has already resulted in significant impediments to business and pleasure travel between Vietnam and the US, and could reduce the large revenues that tourism generates, not to mention the negative impact on the planned development of tourism as one of the five priority industry clusters in Vietnam,” Boger said.

However, according to Ha of BowerGroupAsia Inc., in addition to loosening visa policy, Vietnam’s government should further improve the local business climate. “US investors are also concerned over a series of obstructions in Vietnam, such as cumbersome investment procedures, weak infrastructure, and unclear policy in luring foreign direct investment,” she stressed.