Asia Legal

"Enterprises are free to do business in any business areas that are not prohibited by law" is one of the rights of the enterprises recognized in the applicable Law on Enterprise. What are the prohibited business areas which the foreign investors should be aware of when they make plan to invest in Vietnam?  1. Prohibited bussiness areas  According to Article 6 of the applicable Law on Investment, there are 8 prohibited business areas, including:  Trade in the narcotic substances The prohibited narcotic substances are specified in Appendix I of the Law on Investment 2020, including 47 types, which can be followed by typical narcotics substances: Cetorphine, Acetyl-alpha- methylfenany, Alphacetylmethadol, Alpha-methylfentanyl, Beta-hydroxyfentanyl, Brolamphetamine, Cannabis and cannabis preparations, Heroine, opium and opium preparations…  ...

When investing in conditional business lines in Vietnam, the foreign investors need to consider whether the industry in which they intend to invest in Vietnam is a conditional business line or not. Under the law of Vietnam, there are two types of conditions applied, including: (i) Market access conditions for the foreign investors; and (ii) Conditions for doing business.  1. Market access conditions for the foreign investors   The market access conditions for the foreign investors are pre-check conditions which will be appraised by the investment registration authority of Vietnam before granting Investment Registration Certificate to the foreign investors.  According to Article 9 of the applicable Law on Investment, the foreign investors are entitled to the market access conditions applicable to the domestic investors, excep...