Conditional outward investment sectors from March 1, 2026

Conditional outward investment sectors are subject to rigorous legal control to ensure national security, order, and interests in cross-border activities. Since the new regulations take effect on March 1, 2026, enterprises must carefully review the directory of sectors and corresponding conditions before deploying projects. Long Phan Consulting Company analyzes the specific scope and important technical notes for investors to ensure compliance.

Conditional outward investment sectors from March 1, 2026.

According to Article 41 of the 2025 Investment Law (effective from March 1, 2026), the sectors and professions subject to conditional overseas investment include:

• Bank;
• Insurance;
• Stock;
• Newspapers, radio, television;
• Real estate business.

The conditions for overseas investment in the sectors and professions specified above are stipulated in laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, decrees of the Government, and international investment treaties to which the Socialist Republic of Vietnam is a party.

The 2025 Investment Law emphasizes that the assessment of applications for these sectors is more rigorous than for ordinary sectors. Specialized agencies will provide input on the feasibility and impact of the project on the domestic economy. Clients making investments must prepare a plan for transferring profits and fulfilling tax obligations in accordance with regulations.

>>> See more: Conditions for investing abroad that investors need to know

Sectors prohibited from overseas investment from March 1, 2026

Article 40 of the Law on Investment 2025 establishes technical barriers to prevent illegal capital dispersion through non-transparent projects.

• Domestic Prohibitions: Investors are forbidden from investing in sectors prohibited under Article 6 of the Law on Investment 2025.
  • Long Phan Consulting Company audits projects to ensure they do not involve narcotics, prohibited chemicals, or endangered wildlife.
  • We verify that the investment does not involve human organ trading, human cloning, or debt collection services.
  • Our experts confirm the project is not related to fireworks, national treasures, or e-cigarettes.
• Trade and Export Prohibitions: Sectors involving technologies or products banned from export under foreign trade management laws are prohibited.
  • Consultants review the project’s technology to prevent the illegal transfer of restricted intellectual property.
  • Long Phan assists in identifying international treaties that prohibit specific investment activities.
  • We provide legal protection against administrative or criminal penalties for intentional circumvention of prohibited sectors.
• Host Country Prohibitions: Business activities prohibited by the laws of the investment-receiving country are strictly disallowed.
  • Our team conducts due diligence on the host country’s legal prohibitions to avoid legal conflicts.
  • Long Phan ensures the project operates within the legal framework of the recipient territory.
  • We provide risk assessments for countries under international sanctions where investment may be restricted.

Principles for conducting overseas investment activities

According to Article 38 of the 2025 Investment Law, the principles for conducting overseas investment activities include:

Investors must satisfy fundamental principles under Article 38 of the Law on Investment 2025 to ensure state-managed orientations.

Investor Accountability: Investors must comply with Vietnamese law, host country law, and international treaties.

• Consultants advise on the principle of self-responsibility for the economic efficiency of overseas projects.
• Long Phan facilitates the opening of capital accounts and registration of foreign exchange transactions.
• We offer periodic reporting services to maintain the project’s legal status in Vietnam.

>>> See more: When does the certificate of overseas investment registration expire?

Long Phan Consulting Company provides legal consulting services on overseas investment

Long Phan Consulting Company provides in-depth solutions for enterprises engaging in conditional outward investment. We focus on complex dossier processing and specialized explanations to competent state agencies.

• Analyze the list of conditional investment sectors, compare it with relevant specialized regulations and international treaties; assess the enterprise’s ability to meet the conditions before preparing the application.
• Prepare investment registration documents, financial capacity documents, investment decisions, capital transfer plans, and explanatory documents as required by competent authorities.
• Instructions on opening an investment account, registering for foreign exchange trading, ensuring timely fund transfers, and complying with Vietnamese law on cash flow control.
• We provide consulting services on periodic reporting, investment project adjustments, procedures for repatriating profits, and handling unforeseen situations to ensure the project operates legally, stably, and with minimized risks.

>>> See more: Consulting on investing abroad safely and effectively

Frequently Asked Questions about conditional outward investment sectors

Below are some frequently asked questions about conditional outward investment sectors, please refer to them:

What forms of investment are recognized under Vietnamese law when investing abroad?

Investors carry out overseas investment activities in the following forms:

• Establish economic organizations in accordance with the laws of the host country.
• Investment in the form of overseas contracts;
• Contributing capital, purchasing shares, or acquiring equity stakes in foreign economic organizations to participate in the management of those organizations;
• Buying and selling securities, other valuable papers, or investing through securities investment funds or other intermediary financial institutions abroad;
• Other forms of investment as prescribed by the laws of the host country.

(Legal basis: Article 39 of the 2025 Investment Law.)

Why is real estate business considered a conditional investment sector?

This sector carries inherent risks of money laundering and significant capital flow fluctuations; therefore, the State needs to control the financial capacity and transparency of investors to protect national economic resources.

(Legal basis: Point d, Clause 1, Article 41 of the 2025 Investment Law.)

Are investors prohibited from investing in countries that are under international sanctions?

Investors must comply with international treaties to which Vietnam is a signatory; therefore, if the host country is on the sanctions list under these international agreements, investment activities will not be permitted.

(Legal basis: Clause 1, Article 40 of the 2025 Investment Law.)

What happens if the host country prohibits a business sector that Vietnam permits?

Investors are not permitted to conduct investment and business activities if the planned industry or profession falls under the category prohibited by the laws of the host country. In other words, the investor’s freedom of investment is only guaranteed within the framework of the host country’s laws; any business activity that falls into a prohibited sector according to the current regulations of that country is not permitted to be carried out in any form.

(Legal basis: Clause 3, Article 40 of the 2025 Investment Law.)

What responsibilities do investors have regarding the economic viability of overseas projects?

Investors undertaking overseas investment activities must comply with the provisions of this Law, other relevant laws, the laws of the host country or territory, and relevant international treaties; and are solely responsible for the effectiveness of their overseas investment activities.

(Legal basis: Clause 2, Article 38 of the 2025 Investment Law.)

Can businesses invest abroad in the insurance sector?

Yes, in cases where the investment sector or profession is a conditional business sector, investors are only permitted to proceed when they fully meet the conditions stipulated by law. These conditions may include requirements regarding capital, governance structure, professional capacity, and related standards, and must be approved in writing by the Ministry of Finance before implementation.

(Legal basis: Point b, Clause 1, Article 41 of the 2025 Investment Law.)

Can investors invest abroad by purchasing bonds?

Purchasing securities such as bonds and mutual funds is considered a legitimate form of overseas investment. However, this activity can only be carried out when investors fully meet the conditions and comply with the procedures stipulated by the Government.

(Legal basis: Point d, Clause 1, Article 39 of the 2025 Investment Law.)

What is the main purpose of the government in encouraging overseas investment?

The State encourages overseas investment to exploit, develop, and expand markets; increase the export of goods and services, earn foreign currency; access modern technology, improve management capacity, and supplement resources for the socio-economic development of the country.

(Legal basis: Clause 1, Article 38 of the 2025 Investment Law.)

Conclusion

Enterprises must focus on the regulations for conditional outward investment sectors to ensure the legality of their capital flow. Compliance with the Law on Investment 2025 is a prerequisite for every project. For in-depth consultation and technical solutions from experts, please contact Long Phan Consulting Company via hotline 1900636389