Sectors and Professions Subject to Conditional Business Investment under the Law on Investment 2020

Conditional Business Investment Sectors - Illustrative Image.

Clause 1, Article 7 of the Investment Law 2020 stipulates that conditional business investment sectors are those in which business investment activities must meet necessary conditions for reasons of national defense, national security, social order and safety, social ethics, or community health.

The list of conditional business investment sectors is specified in Annex IV, including:

- Production of seals;

- Trading in supporting tools (including repair);

- Trading in various types of fireworks, excluding explosive fireworks;

....

For details on conditional business investment sectors, refer to Annex IV of the Investment Law 2020.

Photo of a part of Annex IV

Regarding the conditions for business investment in conditional sectors, they are stipulated in laws, resolutions of the National Assembly, ordinances, and resolutions of the Standing Committee of the National Assembly, decrees of the Government of Vietnam, and international treaties to which the Socialist Republic of Vietnam is a member. Ministries, ministerial-level agencies, People's Councils, and People's Committees at all levels, organizations, and individuals are not allowed to issue regulations on business investment conditions.

In which, business investment conditions must be stipulated in accordance with reasons of national defense, national security, social order and safety, social ethics, community health, and must ensure public transparency, objectivity, and cost and time savings for investors.

Additionally, Clause 5, Article 7 of the Investment Law 2020 clearly states that the regulation of business investment conditions must include the following contents:

- Subjects and scope of application of business investment conditions;

- Forms of application of business investment conditions;

- Content of business investment conditions;

- Dossiers, procedures, and administrative processes to comply with business investment conditions (if any);

- State management agencies, agencies with authority to process administrative procedures related to business investment conditions;

- The term of validity of licenses, certificates, or other documents verifying acceptance and approval (if any).

Business investment conditions are applied in the following forms:

- Licenses;

- Certificates;

- Certifications;

- Written confirmations, approvals;

- Other requirements that individuals or economic organizations must meet to conduct business investment activities without needing written confirmation from a competent authority.

Note: Conditional business investment sectors and the conditions for business investment in those sectors must be posted on the National Portal for Business Registration.

See detailed contents at Investment Law 2020, effective January 1, 2021.

Le Vy

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