What are the business lines with prohibited and restricted market access for foreign investors in 2022? What are the conditions for foreign investors in Vietnam?
What are the conditions for foreign investors to invest in Vietnam?
Pursuant to the provisions of Article 15 of Decree 31/2021/ND-CP stipulating the business lines with prohibited and restricted market access for foreign investors as follows:
Business lines with prohibited and restricted market access
1. Business lines with prohibited and restricted market access and the restrictions are specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of Standing committee of the National Assembly, Decrees of the Government and investment-related international treaties. The list of business lines with prohibited and restricted market access (Negative List for Market Access) is provided in Appendix I hereof.
2. Market access conditions shall be applied in the manners specified in Clause 3 Article 9 of the Law on Investment, published and updated in accordance with Article 18 of this Decree.
3. In addition to the market access conditions mentioned in Clause 1 and Clause 2 of this Article, foreign investors and foreign-invested business organizations also need to fulfill the following conditions (if any) when carrying out business investment activities in Vietnam:
a) Use of land, employ workers; natural resources, minerals;
b) Manufacture, supply of public services, goods or goods and services under state monopoly;
c) Ownership, trade of housing, real estate;
d) Application of assistances, aids of the State in certain industries, sectors or geographical areas;
dd) Participation in state-owned enterprise equitization programs or plans;
e) Other conditions specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of Standing committee of the National Assembly, Decrees of the Government and investment-related international treaties that prohibit or restrict market access by foreign-invested business organizations.
Accordingly, business lines with prohibited and restricted market access for foreign investors and regulations on business lines with prohibited and restricted market access are prescribed in laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly Standing Committee, decrees of Government and international treaties on investment.
What are the entities applying the Negative List for Market Access in Vietnam?
Pursuant to the provisions of Article 16 of Decree 31/2021/ND-CP stipulating the entities applying the Negative List for Market Access in Vietnam as follows:
Entities applying the Negative List for Market Access
1. The Negative List for Market Access applies to:
a) The foreign investors specified in Clause 19 Article 3 of the Law on Investment;
b) The business organizations specified in Points a, b and c Clause 1 Article 23 of the Law on Investment upon establishing a business organization; making investment by contributing capital, purchasing shares or purchasing stakes in a business organization; making investment under a business cooperation contract.
(The entities specified in Points a and b of this Clause are below collectively referred to as foreign investors, unless otherwise prescribed by this Decree).
2. With regard to the business investment activities carried out in Vietnam, an investor holding both Vietnamese and foreign nationality may decide whether to apply market access conditions and investment procedures applied to domestic investors or foreign investors. If market access conditions and investment procedures applied to domestic investors are selected, the investor holding both Vietnamese and foreign nationality are not allowed to exercise the rights and obligations of a foreign investor.
Accordingly, the Negative List for Market Access is applied to the following subjects:
- The foreign investors specified in Clause 19 Article 3 of the Law on Investment;
- The business organizations specified in Points a, b and c Clause 1 Article 23 of the Law on Investment upon establishing a business organization; making investment by contributing capital, purchasing shares or purchasing stakes in a business organization; making investment under a business cooperation contract.
What are the business lines with prohibited and restricted market access for foreign investors in 2022? What are the conditions for foreign investors to invest in Vietnam? (Image from the internet)
What is the Negative List for Market Access for foreign investors in Vietnam?
Pursuant to the provisions of Section A, Appendix I of Decree 31/2021/ND-CP, which stipulates the Negative List for Market Access for foreign investors as follows:
Thus, the above is the Negative List for Market Access for foreign investors that you can refer to.
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