Temporary residence card or long-term Visa: Which one suits foreign business owners?

When operating a business in Vietnam, foreign investors often face the question of whether they should use a long-term visa or a Temporary Residence Card (TRC). Choosing the right document directly affects residency rights, legal procedures, taxes, and the ability to manage the business effectively.

The article below analyzes the advantages and disadvantages of each option and provides guidance for foreign business owners in Vietnam.

1. Long-Term Visa

Definition:

A long-term visa is a type of visa issued to foreigners entering Vietnam with a validity period from 1 to 12 months, and it can be extended according to regulations.

Advantages:

• Simple and quick application process.
• Suitable for investors or entrepreneurs with short-term or periodic stays in Vietnam.
• Easy entry and exit from Vietnam multiple times if holding a multiple-entry visa.

Disadvantages:

• Must be renewed periodically, usually annually, causing time and cost burdens.
• Not stable for businesses that require long-term management.
• Cannot replace a Temporary Residence Card in long-term legal procedures such as opening a bank account, renting an office, or applying for work permits for foreign employees.

Suitable for:

Investors who frequently travel between Vietnam and other countries, or businesses planning to stay in Vietnam for less than one year.

2. Temporary residence card (TRC)

Definition:

A Temporary Residence Card (TRC) is a residency permit that allows foreigners to live and work in Vietnam for 1–5 years depending on the category, usually granted to investors, managers, or those with Vietnamese family ties.

Advantages:

• Stable residency without the need for annual visa renewals.
• Allows easier handling of legal procedures related to business operations: opening bank accounts, renting office space, registering foreign employees.
• Ideal for businesses seeking long-term operations and network development in Vietnam.
• Reduces administrative procedures compared to renewing long-term visas multiple times.
• Eligible to apply for and convert a driver’s license in Vietnam, making travel and business trips more convenient.
• Eligible for VNeID electronic identification registration (higher levels), supporting many administrative procedures online.
• Facilitates the opening of credit cards at many banks due to stable residency and clearer identity verification.
• Advantageous for investing in and purchasing condominium real estate permitted under Vietnamese law (e.g., commercial apartment units).

Disadvantages:

• Initial application process is more complex than a visa and requires documents proving investment, management position, or family relationship.
• Processing time may be longer.
• Some benefits (e.g., health insurance, travel) may require additional documents.

Suitable for:

Foreign business owners or FDI investors planning long-term residence and direct management of their company in Vietnam.

3. Quick comparison between TRC and Long-Term Visa

4. Recommendations for foreign business owners

• If you frequently travel abroad and only stay in Vietnam for short periods, a long-term visa is the more convenient option.
• If you plan to manage your business long-term in Vietnam, a Temporary Residence Card will reduce administrative work, stabilize residency, and facilitate financial transactions, identification registration, travel, and investment.
• Always ensure compliance with residency regulations, temporary residence declarations, and tax obligations related to your stay.

Choosing between a TRC and a long-term visa depends on your planned length of stay, level of business involvement, and expansion plans. In most cases, the Temporary Residence Card is the optimal choice for foreign business owners who wish to live and manage their business operations stably in Vietnam.