Investors (individuals and organisations) intend to invest in Vietnam, so investors need to know, by the Vietnamese Investment Law, which industries are allowed, which industries are prohibited, which industries are allowed but must meet the corresponding conditions. Below is a summary of the relevant rules.
Base:
Law 61/2020/QH14 on Investment (abbreviated as Law 61/2020)
Decree 31/2021/ND-CP on Investment (abbreviated as Decree 31/2021)
Mục lục / Content
1. (Law 61/2020) Prohibited business lines
[Article 6. Banned business lines
1. The business investment activities below are banned:
a) Trade in the narcotic substances specified in Appendix I hereof;
b) Trade in the chemicals and minerals specified in Appendix II hereof;
c) Trade in specimens of wild flora and fauna specified in Appendix 1 of Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of rare and/or endangered species of wild fauna and flora in Group I of Appendix III hereof;
d) Prostitution;
dd) Human trafficking; trade in human tissues, corpses, human organs and human fetuses;
e) Business activities pertaining to asexual human reproduction;
g) Trade in firecrackers.
h) Provision of debt collection services.]
1.1. (Decree 31/2021) Guiding in detail on banned business lines
[Article 10. Banned business lines
1. Investors must not invest in the business lines specified in Article 6 of the Law on Investment.
2. The manufacture, use of products specified in Point a, b, c Clause 1 Article 6 of the Law on Investment in analysis, testing, scientific research, healthcare, pharmaceutical production, criminal investigation, defense and security shall comply with the following regulations:
a) Narcotic substances permitted for production by competent authorities in accordance with regulations on the Government on the List of narcotic substances and precursors, the Single Convention on Narcotic Drugs of 1961, and the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988;
b) Banned chemicals and minerals specified in the Law on Investment that are permitted for production and use according to regulations of the Government on management of controlled chemicals under Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction and documents providing guidance on implementation of the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade;
c) Samples of wild flora and fauna that are banned according to the Law on Investment and are permitted for use according to regulations of the Government on management of endangered, precious and rare species of forest flora and fauna and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).]
2. (Law 61/2020) Conditional business lines
[Article 7. Conditional business lines
1. Conditional business lines are the business lines in which the business investment must satisfy certain conditions for reasons of national defense and security, social order and security, social ethics, or public health.
2. A List of conditional business lines is provided in Appendix IV hereof.
3. Conditions for making business investment in the business lines mentioned in Clause 2 of this Article are specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international agreements to which the Socialist Republic of Vietnam is a signatory. Ministries, ministerial agencies, People’s Councils, People’s Committees at all levels, and other entities must not issue regulations on conditions for making business investment.]
2.1. (Law 61/2020) List of conditional business lines in Appendix IV
[Click here for detail]
2.2. (Decree 31/2021) Guiding in detail on conditional business lines
[Article 11. Conditional business lines and business investment conditions
1. Investors may invest in conditional business lines specified in Appendix IV of the Law on Investment as soon as the conditions are fulfilled and fulfillment of such conditions must be maintained throughout the business operation.
2. The investor that fulfill the business investment conditions are entitled to be granted the documents specified in Points a, b, c, d Clause 6 Article 7 of the Law on Investment (hereinafter referred to as “licenses”) or carry out business investment activities when the conditions specified in Point dd Clause 6 Article 7 of the Law on Investment are fulfilled. In case issuance, renewal, revision of a license is rejected, the competent authority shall send a written notice to the investor and provide explanation.]
3. (Law 61/2020) Business lines not allowed in market access, and business lines allowed in market with conditions
[Article 9. Business lines allowed in market with conditions and market access conditions applied to foreign investors
1. Market access conditions applied to foreign investors are the same as those applied to domestic investors, except for the case specified in Clause 2 of this Article.
2. Pursuant to Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international agreements to which the Socialist Republic of Vietnam is a signatory, the Government shall promulgate a List of business lines restricted to foreign investors, including:
a) Business lines not allowed in market access;
b) Business lines allowed in market with conditions.
3. Market access conditions applied to foreign investors specified in the List of business lines restricted to foreign investors include:
a) Ratio of the foreign investor’s charter capital in a business entity;
b) Investment method;
c) Scope of investment;
d) Capacity of the investor; partners participating in the investment activities;
dd) Other conditions specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international agreements to which the Socialist Republic of Vietnam is a signatory.]
3.1. (Decree 31/2021) Business lines not allowed in market access
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3.2. (Decree 31/2021) Business line allowed in market with conditions [Click here for detail]