Understanding Market Access Requirements For Uncommitted Businesses Under Investment Law 2020

Article 9 of the Investment Law 2020 provides for three kinds of business for foreign investors:

  • market-access-prohibited business lines (ngành, nghề chưa được tiếp cận thị trường in Vietnamese) (Prohibited Businesses);

  • business lines with conditional market access (ngành, nghề tiếp cận thị trường có điều kiện in Vietnamese) (Conditional Businesses); and

  • business lines which are not Conditional Businesses and Prohibited Businesses and are subject to the same market access treatment as domestic investors (Unrestricted Businesses).

However, Decree 31/2021 introduces another category of business lines being "business lines without market access commitment" (ngành, nghề Việt Nam chưa cam kết về tiếp cận thị trường in Vietnamese) (Uncommitted Business). It is unclear what the relationship between the Uncommitted Business and the Conditional Business under the Investment Law 2020 is.

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Written by Nguyen Quang Vu On In ,

New Amendments To The Investment Law 2020

The National Assembly of Vietnam adopted a new law (the Amended Investment Law) to amend and supplement several provisions in Investment Law 2020. Most provisions of the Amended Investment Law take effect from 1 January 2025, except certain cases will take effect from 1 July 2025. In this post, we discuss some notable points in this Amended Investment Law.

Special Investment Procedures

The key point in this Amended Investment Law is the introduction of a special investment procedure (Special Procedure) which allows the eligible investors in certain high-tech sectors to obtain the investment registration certificate (IRC) and implement its project in a shorter time and reduces procedures, including waiver of various approvals and procedures.

The project utilizing the Special Procedure are exempt from various standard approvals and procedures, including IPA, technology appraisal, environmental impact assessment report, detail planning, construction permit and other approvals and permits in construction, fire fighting and prevention. The issued IRC serves as document for land lease or conversion of land use purpose. However, before commencing construction, investors are obliged to submit a report on the project's economic-technical construction investment, along with the corresponding appraisal report, to the relevant Authority.

This Special Procedure prevails relevant regulations under other laws enacted before 15 January 2025 when there is any difference between the Special Procedure and such other laws. For projects having IPA or IRC before the effective date of Amended Investment Law and eligible for utilizing the Special Procedure, the investor of such project can choose to apply the Special Procedure. The Special Procedure is still subject to further guidance from the Government and Ministry of Planning and Investment.

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Written by Nguyen Quang Vu On In

Where in the law foreign investors get better treatment over Vietnamese investors?

One can assume that where possible (i.e., not prohibited by international treaties) Vietnamese law will likely provide better treatment to Vietnamese investors over foreign investor. However, in the examples discussed below, foreign investors do get better treatment over Vietnamese investors:

  • Investor protection - The biggest advantage that many foreign investors have over Vietnamese investors is the ability of the foreign investor to make a claim against Vietnamese Government before international arbitration under various investment treaties that Vietnam has signed with several countries. Vietnamese investors have no ability to do so. The Government of Vietnam has indeed been subject to several investor-State disputes and is well aware of the risk that it can be sued if it mistreats foreign investors.

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Written by Nguyen Quang Vu On In ,

Sale And Sub-Lease Of Annual Rental “Lease Rights” Under The Land Law 2024 In Vietnam

The Land Law 2024 introduces major amendments to the land use regime in Vietnam. One of the most interesting new amendments is the ability of a land user who lease land from the Government with annual rental payment (such user, Annual Land User) could now sub-lease or, subject to certain conditions, sell the land (via a sub-lease or sale of the lease rights) together with the assets attached to such land to another person. Previously, most land users who pay land rental for the whole term in advance could sublease or sell its land to another person. In our opinion, if implemented properly, the new amendment could improve the supply side of the real estate market substantially.

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Written by Nguyen Quang Vu On In ,