Additional policies on business investment in Vietnam applied as of January 1, 2021

Additional policies on business investment in Vietnam applied as of January 1, 2021 (Internet image)

Article 5 of the Law on Investment 2020 regulates the policies on business investment in Vietnam including:

- Investors are entitled to carry out business investment activities in the business lines that are not banned by this Law. Regarding conditional business lines, investors must satisfy business investment conditions as prescribed by law.

- Investors may decide their business investment activities on their own and take responsibility therefor in accordance with this law and relevant laws; may access and make use of loan capital, assistance funds, land, and other resources as prescribed by law.

- Any business investment activity of an investor shall be suspended, stopped or terminated if such activity harms or potentially harms national defense and security.

- The ownership of assets, capital, income, other lawful rights and interests of investors are recognized and protected by the State.

- The State shall treat investors equitably; introduce policies to encourage and enable investors to carry out business investment activities and to ensure sustainable development of economic sectors.

- International investment-related treaties to which Socialist Republic of Vietnam is a signatory are upheld and implemented by the State.

In addition to adding policies on business investment, the Law on Investment 2020 also prohibits the following business lines in Vietnam:

- Trade in firecrackers.

- Provision of debt collection services.

Thus, from January 1, 2021, any business investment activity of an investor shall be suspended, stopped or terminated if such activity harms or potentially harms national defense and security. At the same time, trade in firecrackers and provision of debt collection services are prohibited.

More details can be found in the Law on Investment 2020, which comes into force from January 1, 2021.

Le Hai

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