Along with the strong development of the market economy, the number of foreign investors investing in Vietnam is increasing with different fields and industries. For legitimate business investment, one of the problems that investors are concerned about is that business is prohibited from investing in business and Conditional business lines
1.Legal basis to regulate the business lines prohibiting business investment:
- Investment Law no 67/2014 / QH13
- Decree 118/2015 / ND-CP of the Government issued on November 12, 2015, detailing and guiding the implementation of a number of articles of the Investment Law.
- Law: 03/2016/QH14 Law on amendment and supplement to article 6 and annex 4 on the list of conditional business lines stipulated in the law on Investment No. 67/2014/QH13
2.The investments in the activities below are banned:
Under the provisions of the current Investment Law, the following are the sectors that prohibit business investment:
- Trade in the narcotic substances specified in Appendix I hereof;
- Trade in the chemicals and minerals specified in Appendix I of this Law;
- 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 3 hereof;
- Human trafficking; trade in human tissues and body parts;
- Business pertaining to human cloning.
2.Conditional business lines
- Conditional business lines are the business lines in which the investment must satisfy certain conditions for reasons of national defense and security, social order and security, social ethics, or public health.
- Conditions for making investments in the business lines mentioned in Clause 2 of this Article are specified in the Laws, Ordinances, Decrees, and the international agreements to which the Socialist Republic of Vietnam is a signatory. Ministries, ministerial agencies, the People’s Council, People’s Committees, and other entities must not issue regulations on conditions for making business investments.
- Conditions for making business investments must be appropriate for the objectives in Clause 1 of this Article, ensure transparency, objectivity, not wasting time or money of investors.
- The conditional business lines and the corresponding conditions shall be posted on the National Company Registration Portal.
- The Government shall elaborate the announcement and control of conditions for business investments.
Please see The List of conditional business lines here:https://docs.google.com/document/d/1ItnGvtIJKQsRCyBTZ1b30bkRNZ5JDTK_ZjIWees2ca4/edit?usp=sharing