Consolidated List of Business Investment Prohibited Sectors and Trades in 2021

Summary of prohibited investment and business sectors in 2021 - Illustrative image

 Summary of prohibited investment and business sectors in 2021

Pursuant to Clause 1, Article 6 of the Investment Law 2020, the following investment and business activities are prohibited:

- Trading in narcotic substances as stipulated in Annex I of the Investment Law 2020;- Trading in chemicals and minerals as stipulated in Annex II of the Investment Law 2020;- Trading in specimens of wild flora and fauna species originating from natural exploitation as stipulated in Annex I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of endangered, precious, and rare forest flora and fauna, aquatic species Group I originating from natural exploitation as stipulated in Annex III of the Investment Law 2020;- Prostitution business;- Trading in humans, human tissues, human corpses, body parts, and human fetuses;- Business activities related to human cloning;- Trading in explosives;- Debt collection services.

As such, compared to the provisions of the Investment Law 2014, the Investment Law 2020 has added 02 new prohibited investment and business sectors: Trading in explosives; Debt collection services.

Additionally, the Investment Law 2020 provides:

Article 4. Application of the Investment Law, related laws, and international treaties

2. In case of different provisions between this Law and other laws regarding prohibited investment and business sectors, conditional investment and business sectors, investment procedures, the provisions of this Law shall prevail, except for the investment procedures stipulated in the Securities Law, Credit Institutions Law, Insurance Business Law, and Petroleum Law.

Thus, when there are different regulations on prohibited investment and business sectors between laws, the procedures will be followed according to the regulations of the Investment Law 2020, except for the procedures stipulated in the Securities Law, Credit Institutions Law, Insurance Business Law, and Petroleum Law.

The law also emphasizes that investors have the right to carry out investment and business activities in sectors that are not prohibited by this Law. For conditional investment and business sectors, investors must meet the investment conditions stipulated by law.

More details can be found in: Investment Law 2020, effective from January 1, 2021, replacing the Investment Law 2014.

Thu Ba

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