In the first half of 2024, the realized foreign direct investment (FDI) in Vietnam reached a cumulative total of USD 10.84 billion, marking an increase of 8.2% year-on-year. This is the highest FDI amount recorded for the first six months of the year in the past five years. The manufacturing and processing industry leads the sectors attracting FDI, followed by real estate business, and the production and distribution of electricity, gas, hot water, steam, and air conditioning. These are very positive signals for foreign investors considering capital contribution in the Vietnamese market. However, alongside these positive developments, there are still certain restrictions in some industries according to the current government regulations, which foreign investors need to pay close attention to.
A. Industries and Sectors Not Open to Foreign Investors
Trading goods and services listed as state monopoly items in the commerce sector.
Journalism and news collection activities in all forms.
Fishing or seafood extraction.
Investigation and security services.
Administrative and judicial services, including forensic services, notary services, asset auction services, and services of bailiffs.
Services for sending workers abroad under contract.
Investment in building infrastructure for cemeteries to transfer land use rights associated with the infrastructure.
Direct waste collection services from households.
Public opinion polling services.
Explosive services.
Manufacturing and trading of weapons, explosives, and supportive tools.
Importing and dismantling used ships.
Public postal services.
Re-exporting goods.
Temporary import and re-export business.
Exercising export, import, and distribution rights for goods listed in the Foreign Investor's Goods List, which foreign investors and foreign-invested enterprises are not allowed to exercise.
Collecting, purchasing, and handling public assets in units of the armed forces.
Manufacturing military materials or equipment; trading military uniforms and supplies for the armed forces, military weapons, equipment, techniques, and specialized military and police vehicles, components, parts, and materials, and specialized equipment and technology used to manufacture them.
Providing industrial property representation services and intellectual property appraisal services.
Services for establishing, operating, maintaining, and preserving maritime signaling, water areas, public waterways, and maritime routes; services for surveying water areas, public waterways, and maritime routes for maritime notice announcements; services for surveying, constructing, and issuing maritime charts for water areas, seaports, waterways, and maritime routes; and issuing maritime safety documents and publications.
Services for ensuring maritime safety in water areas, public waterways, and maritime routes; electronic maritime information services.
Inspection (testing, examination) services and certification for transportation vehicles (including systems, assemblies, equipment, and components); certification services for safety and environmental protection for specialized equipment, containers, hazardous goods packaging equipment used in transportation; certification for technical safety and environmental protection for offshore oil and gas exploration and transportation equipment; and certification for occupational safety for machines and equipment with strict safety requirements installed on transportation vehicles and offshore oil and gas exploration and transportation equipment; and certification services for fishing vessels.
Investigation, assessment, and exploitation of natural forests (including logging and hunting, trapping rare wild animals, managing plant, animal, and microorganism gene pools used in agriculture).
Research or use of new animal breeding genetic resources before being evaluated and approved by the Ministry of Agriculture and Rural Development.
Travel services, except for international travel services serving international tourists coming to Vietnam.
In addition to the restricted sectors, sectors open to foreign investors with conditions are those in which foreign investors can participate, but must adhere to certain legal requirements. These conditions may relate to ownership ratios, requirements for cooperation with local partners, or other standards aimed at protecting national interests and ensuring sustainable development. Understanding and complying with these conditions is crucial for operating legally and effectively in the Vietnamese market, including industries such as:
B. Industries and Sectors Open to Foreign Investors with Conditions
Production and distribution of cultural products, including video recordings.
Production, distribution, and screening of television programs and performing arts, stage, and film works.
Broadcasting and television services.
Insurance; banking; securities trading and other services related to insurance, banking, and securities.
Postal and telecommunications services.
Advertising services.
Printing services and publishing services.
Surveying and mapping services.
Aerial photography services.
Educational services.
Exploration, extraction, and processing of natural resources, minerals, oil, and gas.
Hydropower, offshore wind power, and nuclear energy.
Transportation of goods and passengers by rail, air, road, waterway, sea, and pipeline.
Aquaculture.
Forestry and hunting.
Gambling and casino businesses.
Security services.
Construction, operation, and management of river ports, seaports, and airports.
Real estate business.
Legal services.
Veterinary services.
Buying and selling goods and activities directly related to the buying and selling of goods by foreign service providers in Vietnam.
Technical inspection and analysis services.
Tourism services.
Health and social services.
Sports and entertainment services.
Paper production.
Production of transportation vehicles with more than 29 seats.
Development and operation of traditional markets.
Commodity exchange operations.
Domestic cargo consolidation services.
Audit, accounting, bookkeeping, and tax services.
Valuation services; consulting on determining the value of enterprises for equitization.
Services related to agriculture, forestry, and fisheries.
Aircraft manufacturing.
Railway locomotive and carriage manufacturing.
Production and trading of tobacco products, tobacco materials, and tobacco machinery and equipment.
Publishing house operations.
New shipbuilding and ship repair.
Waste collection services and environmental monitoring services.
Commercial arbitration and mediation services.
Logistics services.
Coastal shipping.
Cultivation, production, or processing of rare crops, breeding and processing rare wild animals, including live animals and their products.
Construction material production.
Construction and related technical services.
Motorcycle assembly.
Services related to sports, fine arts, performing arts, fashion shows, beauty contests, modeling, and other recreational activities.
Air transport support services; ground handling services at airports; in-flight meal services; navigation and surveillance services, meteorological services for aviation.
Ship agency services; ship towing services.
Services related to cultural heritage, copyright and related rights, photography, video recording, art exhibitions, festivals, libraries, and museums.
Services related to tourism promotion and advertising.
Representation services, recruitment agency services, and scheduling and management for artists and athletes.
Family-related services.
E-commerce activities.
Cemetery business, cemetery services, and funeral services.
Aerial seeding and spraying services.
Maritime pilotage services.
Investment sectors and activities under pilot mechanisms by the National Assembly, the National Assembly Standing Committee, the Government, or the Prime Minister.
The above information details the industries and sectors with restrictions or conditions for foreign investment in Vietnam. Generally, Vietnam is gradually opening up and creating favorable conditions for foreign investors to participate in various important economic sectors. Understanding the current government regulations will help investors ensure legal compliance and uncover safe and effective investment opportunities.
Source: ELABORATION OF SOME ARTICLES OF THE LAW ON INVESTMENT https://thuvienphapluat.vn/van-ban/EN/Dau-tu/Decree-31-2021-ND-CP-elaboration-of-some-articles-of-the-Law-on-Investment/473927/tieng-anh.aspx
Kommentare