Vietnam is exploring the introduction of a “golden visa” program aimed at attracting affluent foreigners, as part of its efforts to enhance its appeal as a tourism and investment destination in Southeast Asia. Golden visas are residency or citizenship schemes that allow foreigners to live in a country for an extended period, often in exchange for significant investments, such as purchasing real estate or contributing to the local economy. This move comes as Vietnam seeks to remain competitive in the Southeast Asian tourism market, where countries like Thailand and Malaysia have already implemented similar long-term visa programs to lure high-net-worth individuals and investors.
According to reports, Vietnam’s Tourism Advisory Board has proposed a golden visa that would allow stays of up to ten years, alongside a 10-year investor visa offering a pathway to permanent residency after five years, and a five-year talent visa for skilled professionals. As reported by The Economic Times, the proposal was submitted to Prime Minister Pham Minh Chinh, highlighting the need for Vietnam to keep pace with regional rivals in attracting international visitors and investors. Further details from VnExpress International indicate that the golden visa is part of a broader strategy to recover and surpass pre-pandemic tourism levels.
While the proposal is currently under review by the Vietnamese government, there has been no official confirmation or announcement regarding its approval or implementation timeline. During a recent government meeting, Prime Minister Pham Minh Chinh emphasized the importance of enhancing visa policies to support tourism growth, stating, “Vietnam must remain an open and safe destination.”
Regarding taxation, the specifics for golden visa holders remain uncertain. Under Vietnam’s current tax laws, residents are taxed on their worldwide income, while non-residents are only taxed on income sourced within Vietnam. If golden visa holders are classified as residents, they could potentially be subject to taxation on their global earnings. However, to enhance the appeal of the program, Vietnam might introduce special tax provisions, such as exemptions on foreign income or a preferential tax rate, similar to incentives offered in other countries’ golden visa schemes. For example, Portugal’s golden visa program includes a non-habitual resident tax status, which provides significant tax benefits on foreign income for a decade. Whether Vietnam will adopt a similar approach remains to be seen, but such incentives could be crucial in attracting affluent foreigners.
The introduction of a golden visa program could have significant implications for Vietnam’s economy. By attracting high-net-worth individuals and investors, the country could see an increase in foreign direct investment, particularly in real estate and business sectors. Additionally, the talent visa component could help address skill shortages in key industries, fostering innovation and economic growth. However, the program could also present challenges. An influx of wealthy foreigners might lead to increased demand for housing, potentially driving up property prices in popular areas like Ho Chi Minh City and Hanoi. Additionally, ensuring the social integration of long-term foreign residents and managing any cultural or economic disparities will be important considerations for policymakers.
As Vietnam deliberates on this proposal, potential investors and expatriates are keenly awaiting more information on the program’s specifics, including investment thresholds, tax implications, and renewal processes. The ultimate success of the golden visa will hinge on striking a balance between attracting foreign capital and talent while ensuring sustainable and inclusive economic development.
