Foreign investors are welcome to do business in almost any field in Vietnam without restrictions and limitations. However; there are some areas with certain conditions that foreign investors need to be aware of; before deciding whether or not; they should enter the market. Regarding this issue; LSX Lawfirm would like to share with you the article: “Industries that the law allow foreign investors in Vietnam” as follows:
Law on Investment 2020
Decree No. 31/2021/ND-CP dated March 26, 2021
Can foreign investors invest in Vietnam?
Pursuant to Articles 1 and 2 of the Law on Investment in 2020; the subjects of application of this Law are “investors and agencies; organizations and individuals related to business investment activities” and the scope is ” on business investment activities in Vietnam; and business investment activities from Vietnam to abroad”.
In addition; Clause 10; Article 3 of the Investment Law 2020; it is stated: “The conditions for market access for foreign investors are conditions that foreign investors must meet in order to invest in industries and trades on the list of industries and trades restricted from market; access for foreign investors specified in Clause 2; Article 9 of this Law.
foreign investors can fully invest in industries and trades in Vietnam; but will need to meet the market access conditions of each of those industries. It should be noted that; at present; in Vietnam; there are still a number of industries and professions that are not open to foreign investors. Specifically specified in Decree No.31/2021/ND-CP dated March 26, 2021.
Industries that the law allow foreign investors in Vietnam
Pursuant to Article 15 of Decree 31/2021/ND-CP dated March 26, 2021; Industries and trades with restrictions on market access for foreign investors and restrictions on market; access for such industries and trades are prescribed in-laws and resolutions of the National Assembly; ordinances; resolutions of the National Assembly Standing Committee; Government decrees, and international treaties on investment. Moreover; the list of industries and trades with restrictions on market; access for foreign investors is published in Appendix I of this Decree.
Up to the present time; industries and professions with limited market access for foreign investors; include 25 industries and fields that have not yet been able to access the market; such as Trading in goods and services on the list of goods and services; subject to state monopoly in the field of commerce; then; Press activities and newsgathering activities in any form; then; Fishing; then; Investigative and security services, etc. Be specified in Section A; Appendix I of the list of industries and trades with restricted market access for foreign investors. (Attached to Decree No. 31/2021/ND-CP dated March 26, 2021, of Government).
Besides, there are 59 industries and occupations with conditional market access, such as: Providing radio and television services; Insurance money; Bank; securities trading and other services related to insurance, banking, securities trading; Post and telecommunications services; Advertising services, … are specified in Section B, Appendix I of the List of industries and trades restricted from market access for foreign investors (Issued together with Decree No. 31/2021/ Decree-CP dated March 26, 2021 of the Government).
In Clause 3; Article 9 of the Law on Investment; there are regulations on market; access conditions for foreign investors specified in the List of industries and trades; restricted from market access for foreign investors and posted and update; according to the provisions of Article 18 of Decree No. 31/2021/ND-CP
Firstly; rate of ownership of charter capital of foreign investors in economic organizations
Secondly; form of investment
Thirdly; the scope of investment activities
Then; investor’s capacity; partners participating in investment activities
Finally; other conditions as prescribed in laws and resolutions of the National Assembly; ordinances and resolutions of the National Assembly Standing Committee; decrees of the Government; and international treaties to which the Socialist Republic of Vietnam is concerned a member.
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Investment license application service for foreign investors
In addition to the market access conditions for the industries and trades specified in Clauses 1 and 2; Article 15 of Decree 31/2021/ND-C; foreign investors; Foreign-invested economic organizations; when conducting business investment activities in Vietnam; must also satisfy the following conditions (if any):
- Firstly; use of land and labor; natural resources, minerals.
- Secondly; produce and supply public goods or services; or which are exclusively state-owned.
- Thirdly; own and trade in houses; and real estate.
- Then; apply forms of support and subsidies of the State to a number of branches and fields; as well as developing region; or territories.
- Then; participate in the program and plan for the equitization of state-owned enterprises.
- Finally; other conditions as prescribed in laws; resolutions of the National Assembly; then; ordinances; then; resolutions of the National Assembly Standing Committee. Then; decrees of the Government; and international treaties on investment contain provisions that do not allow; as well as restrict market access for foreign-invested economic organizations.
Accordingly; conditional business lines are when business subjects in these lines need to meet certain conditions to be allowed to do business; or provide services and goods to the market. Including: capital conditions; conditions for practice certificates, conditions for applying for a sub-license; conditions for certification of eligibilit
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