Remove 2 Conditional Business Lines in Vietnam

After receiving feedback from the Ministry of Planning and Investment of Vietnam on reviewing, proposing revisions, and adding to the list of sectors and trades subject to conditional business investment in accordance with the Investment Law 2014, the Ministry of Finance of Vietnam proposed the removal of two trades from Appendix 4.

First, business consultancy services to determine the value of enterprises for equitization.

From practical operations, this business activity is essentially set up by the State owner to choose entities to provide valuation services for its own assets, not a condition required for State management over an independent sector.

The Ministry of Finance of Vietnam states that under current regulations, to provide this service, businesses must meet the conditions specified in Decree No. 59/2011/ND-CP of the Government of Vietnam on converting 100% state-owned enterprises into joint-stock companies. Businesses must be auditing companies, securities companies, or valuation companies with valuation functions, have a valuation procedure, have 5 years of operation experience, have at least 3 valuation experts, and not violate legal regulations of the business sector in 5 consecutive years before the registration year.

Thus, this regulation does not set up a new business sector since companies performing valuations are chosen from among securities companies, valuation companies, and auditing companies with valuation functions.

Second, insurance agent training services.

Training insurance agents is an activity conducted by educational institutions (schools, training centers already established) meeting the program requirements; insurance agent trainers must have insurance expertise, legal knowledge, and pedagogy skills; suitable facilities for training are required.

These requirements refer to technical standards under Clause 2, Article 3 of the Law on Technical Standards and Regulations not as business conditions for an independent sector.

Therefore, to ensure smooth and easy operation of business activities, the removal of the above two trades from the list of conditional business sectors is entirely reasonable.

In the upcoming period, Ministries and central authorities will continue to review, monitor, evaluate, and gather feedback from society and the business community to amend, supplement, and eliminate unreasonable business conditions.

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