One of the highlights of this draft Law on Investment (amended) in Vietnam is the abolition of 12 conditional business investment lines while 06 lines are added. The draft law is very significant to foreign investors in Vietnam in next time.
The business investment lines are removed from the list including:
+Service activities of commercial arbitration organizations;
+Debt trading service;
+Manufacturing and repairing liquefied petroleum gas (LPG) bottles;
+ Logistic business;
+ Urban planning consultancy services provided by foreign organizations and individuals;
+ Food business under the specialized management of the Ministry of Health;
+ Production of helmets for motorcyclists and mopeds;
+ providing advertising product introduction services to the public.
+ Providing training and retraining in knowledge about real estate brokerage, operating real estate trading floors;
+ Providing training and retraining in apartment building’s professional knowledge and skills;
+ Cremation service management and operation of cremation facilities;
Particularly, the business line “dealing in debt collection services” is removed from the list of conditional business but added to the list of lines and trades banned from business investment.
6 new business lines added to the conditional business list
There are 6 new business lines added to the conditional business list, including:
+ data center service business;
+ import press distribution service business;
+ fishing vessel registry;
+ electronic identification and authentication services;
+ train and foster crew members of fishing ships and provide architectural services.
Thus, in this latest draft law, Vietnam will have 236 conditional investment and business sectors.
Business lines not allowed for investment in Vietnam
Vietnam also continues to ban investment in trading narcotics, chemicals, minerals and wild animals and plants banned under international conventions; However, the appendices 1, 2 and 3 of the Investment Law are removed and assigned to the Government for detailed regulations to suit the rapidly changing practice of these products as well as the requirement of state management as prescribed laws and treaties to which Vietnam is a member.
For foreign investors, the draft law adds regulations on the list of industries and trades market access with condition for foreign investors according to the method of abandonment.
There will be 2 categories, including: lines and trades of foreign investors not allowed to access to the market; and lines and trades of foreign investors allowed to access markets with condition.
In addition to these two categories, foreign investors are allowed to access to the market as same as domestic investors. Based on the conditions in each period, the Government will announce the list of industries and trades with conditional market access of foreign investors.
At the same time, the draft law does not require foreign investors to have an investment project and grant an investment registration certificate before establishing an innovative start-up enterprise and an innovative start-up investment fund.
Industries and trades banned from offshore investment
Draft of the Law adds regulations on industries and trades banned from offshore investment, including:
+ (i) sectors and trades banned from business investment as prescribed in Article 6 of the Law on Investment;
+ (ii) industries with technologies and products that are banned from export and industries and trades banned from offshore investment under international treaties on investment.
Adding regulations on sectors and trades subject to conditional oversea investment
Sectors and trades subject to conditional offshore investment includes industries: banking, insurance, securities, science and technology, journalism, radio, television and real estate business.
Adding regulations on consultation procedures of the Ministry of Foreign Affairs
The draft law added regulations on consultation procedures of the Ministry of Foreign Affairs for investment projects in countries and territories that are at war, civil war, and political instability; countries and territories for which Vietnam has not established diplomatic relations; countries and territories to which Vietnam has not signed free trade agreements, agreements on investment encouragement and protection.
According to calculations by the drafting agency, the new draft law will help businesses cut 168.4 billion dong of annual compliance costs
##Other articles related to investment in Vietnam:
- You could read how to open new company in Vietnam here
- You could read notes to Company formation in Vietnam here
- You could read notes to Doing business in Vietnam here
- You could read how to open representative office in Vietnam here
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