Asia Legal

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...

The operation duration of the investment project is recorded on the Investment Registration Certificate. Depending on the location of the investment project, the field of investment, the investment capital, the project will be determined by the investment licensing authority for its operation duration, but not exceeding the following period: Investment projects inside an economic zone shall not exceed 70 years. investment projects outside an economic zone shall not exceed 50 years. The duration of a project in a disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery may be longer but shall not exceed 70 years. If a project uses land allocated or leased by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule. The duration of the project will be considered and decided by the investment registration authority, on the basis of a comprehensiv...