Sectors in which foreign investors can invest in Vietnam

Sectors in which foreign investors can invest in Vietnam brings many outstanding benefits, helping economic growth, creating jobs and promoting technology transfer. With support from the open-door policy, industries such as industrial production, information technology, financial services and real estate are attracting strong FDI inflows. Through the following article, Long Phan will provide customers with information about the industries that foreign investors invest in Vietnam.

Market access conditions for foreign investors

Foreign investors entering the Vietnamese market need to comply with the conditions specified in Clause 3, Article 9 of the Law on Investment 2020, to ensure that investment activities take place legally and effectively. Market access conditions for foreign investors include:

• Capital ownership ratio: Clear regulations on the ratio of charter capital that foreign investors can own in Vietnamese enterprises.
• Form of investment: Allowed forms of investment, such as direct investment, joint venture, or purchase of shares or capital contributions.
• Scope of business activities: Fields and industries that foreign investors are allowed to participate in, including open and restricted industries.
• Capacity of investors and partners: Requirements for financial capacity and experience of investors as well as partners participating in investment activities.
• Other conditions: Additional regulations related to Vietnamese law, resolutions of the National Assembly, decrees of the Government and international treaties to which Vietnam is a member.

Legal basis: Clause 3, Article 9 of the Law on Investment 2020.

Industry restrictions on investment for foreign investors

The Law on Investment 2020 and Decree 31/2021/ND-CP regulate two groups of industries with limited market access. Include:

1. The group of occupations that have not yet had market access is specified in Section A, Appendix I of Decree 31/2021/ND-CP, including:

• Industries and professions where Vietnamese law and international treaties on investment do not allow foreign investors to conduct investment and business activities;
• Industries and professions that affect national defense and security;
• State-monopolized industries and occupations.

2. The group of occupations with conditional access is specified in Section B, Appendix I of Decree 31/2021/ND-CP, including:

• Advertising services (maximum capital ratio 51%);
• Real estate business;
• Logistics services;
• Education and training;
• Banking and financial services;
• Legal services;
• …

>>> See more: LIST OF OCCUPATIONS WITHOUT MARKET ACCESS AND OCCUPATIONS WITH CONDITIONAL MARKET ACCESS.

CSPL: Appendix I Decree 31/2021/ND-CP.

Sectors in which foreign investors can invest in Vietnam

According to the provisions of the Law on Investment 2020, foreign investors are allowed to invest in most fields. This creates an open business environment for foreign investment in Vietnam.

However, there are still a number of industries to which foreign investors are allowed conditional access, including:

• Production and distribution of cultural products, including video recordings.
• Production, distribution, and screening of television programs and works of music, dance, theater, and cinema.
• Providing radio and television broadcasting services.
• Insurance; bank; securities trading and other services related to insurance, banking, and securities trading.
• Postal and telecommunications services.
• Advertising services.
• Printing services, publication distribution services.
• Surveying and mapping services.
• Photography service from above.
• Educational services.
• Exploration, exploitation and processing of natural resources, minerals, oil and gas.
• Hydropower, offshore wind power and nuclear energy.
• Transport of goods and passengers by rail, air, road, river, sea, and pipeline.
• Raising and growing aquaculture products….

CSPL: Section B Appendix I Decree 31/2021/ND-CP.

Benefits of using in-depth consulting services on permitted investment industries

Using in-depth consulting services on industries allowed to invest in Vietnam brings many important benefits:

• Save time and costs: Consulting helps investors understand regulations and procedures, thereby avoiding errors and reducing unnecessary costs.
• Ensuring compliance with regulations: The service helps ensure investment activities comply with the law, avoiding risks.
• Choosing the right industry: Experts help investors choose a career that fits their strategy and requirements.
• Increase your chances of success: Guide to effective investment strategies to help increase your chances of success.
• Support for licensing procedures: Consulting helps complete documents quickly, reduce time and avoid errors.

Consulting services on foreign investors investing in Long Phan

With a team of consulting experts with many years of experience, Long Phan provides customers with consulting services on industries where foreign investors invest in Vietnam including:

• Consulting on choosing suitable investment industries.
• Consulting on restricted industries for foreign investors.
• Consulting on charter capital ownership ratio for foreign investors.
• Consulting on forms of investment in Vietnam.
• Support procedures for applying for investment licenses and business licenses.
• Consulting on special investment conditions for some industries.
• Consulting on international commitments in free trade agreements (FTA, TPP, RCEP).
• Consulting on protecting the rights of foreign investors in Vietnam.

Long Phan’s consulting services on foreign investors investing in Vietnam help investors understand regulations, choose appropriate industries and optimize investment opportunities. With a team of experienced experts, Long Phan will support customers from consulting to career selection. Please contact Long Phan via hotline: 0906735386 to receive dedicated support from our experts.