Foreign-Invested Enterprise Stuck in eID Registration Due to Chinese Director Without Temporary Residence Card
The story of Company X, a Chinese-invested enterprise based in Thu Duc City, exemplifies the challenges FDI companies may encounter when entering the digital transformation process in Vietnam.
Recently, the company appointed Mr. Li, a Chinese national, as General Director. Mr. Li entered Vietnam with a DN1 visa and is currently in the process of applying for a temporary residence card. However, when the company submitted documents to register a level-2 electronic identification (eID) account via the VNeID app, authorities rejected the application, citing that the legal representative did not yet possess a temporary residence card.
Why is not having a temporary residence card such a critical barrier?
Why can't the director register for an eID without a temporary residence card?
According to Decree 59/2022/ND-CP and related guidance, foreign nationals must meet the following to obtain a level-2 eID account:
A valid passport
A temporary or permanent residence card issued by immigration authorities
Since Mr. Li only holds a DN1 visa and no residence card, his application was lawfully rejected. Under current regulations, only legal representatives with a level-2 eID account can:
Register eID for the business
Perform electronic signing via VNeID
Transact with banks, tax authorities, and government digital services
Without this small card, the entire enterprise operation becomes stuck.
"Deadlock" When the Company Cannot Register Its eID
As Vietnam pushes for digital transformation, eID has become a “golden key” to access public services, bank transactions, digital contract signing, and administrative procedures.
Failing to register the company's eID leads to:
Missing tax filing deadlines, risking penalties
Inability to sign e-contracts with partners
Obstacles in banking activities and opening company accounts
Project delays, damaging investor confidence
A seemingly minor legal issue can trigger a domino effect that disrupts the whole business system.
How Did DEDICA Help Resolve the Situation?
Upon receiving the client’s request, DEDICA’s legal team quickly provided two solutions:
Temporary fix: Appoint an alternative legal representative
We advised the company to temporarily assign another legal rep – a Vietnamese national or a foreigner with a valid residence card – to handle eID registration, ensuring uninterrupted operations.
Long-term solution: Assist Mr. Li in obtaining his residence card
DEDICA supported Mr. Li in preparing and submitting his application for the temporary residence card. Once issued, we guided him through level-2 personal eID registration and updated the company’s eID information accordingly.
As a result, the business swiftly overcame the bottleneck, ensuring compliance and operational continuity.
What Should FDI Companies Note When Appointing a Foreign Director?
From this case, DEDICA offers the following practical advice:
Check residency status before appointment
Ensure any foreign legal representative has legal residency in Vietnam. Without a residence card, vital legal procedures – including eID registration – cannot be completed.
Prepare a legal backup plan
Vietnamese law allows for multiple legal representatives. Having an additional legal rep enables operational continuity during international personnel transitions.
With the digital shift accelerating, eID is no longer optional – it’s mandatory. FDI firms must consider residency compliance when appointing foreign directors to avoid administrative paralysis.
DEDICA Law Firm has successfully supported hundreds of FDI enterprises in Vietnam, from legal staffing strategies to immigration and eID procedures.
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