Domains entitled to investment preferences in Vietnam

1. Production of new materials or new materials or new energy; manufacture of hi-tech products, bio-technology or information technology; mechanical engineering.

2. Farming and processing of agricultural, forest or aquatic products; salt making; production of hybrid breeds, new plant varieties and/or animal breeds.

3. Use of high technologies or modern techniques; protection of ecological environment; research, development and nourishment of high technologies.

4. Employment of a large number of laborers.

5. Building and development of infrastructures, important and large-scale projects.

6. Development of education, training, healthcare, physical training and sports and national culture.
7. Development of traditional crafts and industries.
8. Other production and service domains, which need to be promoted.

Geographical areas entitled to investment preferences in Vietnam

1. Areas facing difficult or extremely difficult socio-economic conditions.

2. Industrial parks, export processing zones, hi-tech parks, economic zones.

Conditional investment domains in Vietnam

1. Conditional investment domains include:

a) Domains, which affect national defense, security, social order and safety;

b) Financial and banking domains;

c) Domains, which affect public health;

d) Culture, information, press and publishing;

e) Entertainment services;

f) Real estate business;

g) Survey, prospecting, exploration and exploitation of natural resources; ecological environment;

h) Development of education and training.

i) Some other domains as provided for by law.

2. For foreign investors, apart from the domains defined in Clause 1 of this Article, conditional investment domains shall also include those scheduled for implementation of international commitments in treaties to which the Socialist Republic of Vietnam is a contracting party.

3. For foreign-invested enterprises having already invested in the domains other than the conditional ones, which, however, in the course of operation, have been added to the list of conditional investment domains, investors shall still be entitled to continue operation in such domains.

4. Foreign investors may apply the same investment conditions as domestic ones in cases where the latter own 51% or more of charter capital of an enterprise.

5. Based on socio-economic development requirements in each period and the consistency with commitments in treaties to which the Socialist Republic of Vietnam is a contracting party, the Government shall stipulate a list of conditional investment domains, conditions for the establishment of economic organizations, investment forms and the opening of markets in a number of domains for foreign investment.

Domains banned from investment in Vietnam
1. Projects, which are detrimental to national defense, security and public interests.

2. Projects, which are prejudicial to historical or cultural relics, Vietnamese culture, morals or fine customs.

3. Projects, which may cause harms to people’s health, destroy natural resources or environment.

4. Projects on the treatment of hazardous wastes brought from outside into Vietnam; production of toxic chemicals or use of toxic agents banned under treaties.
Promulgation of lists of domains and geographical areas entitled to investment preferences or subject to conditional investment in Vietnam
1. Based on socio-economic development planning and orientations in each period and commitments in treaties to which the Socialist Republic of Vietnam is a contracting party, the Government shall promulgate, amend or supplement the list of domains entitled to investment preferences, the list of conditional investment domains, the list of investment-banned domains and the list of geographical areas entitled to investment preferences.
2. Ministries, ministerial-level agencies and People’s Committees of provinces or centrally-run cities (hereinafter called provincial-level People’s Committees) must not promulgate regulations on investment-banned domains, conditional investment domains and investment preferences in excess of the levels provided for by law.
If you would like further information on Investment domains and geographical areas, please either email to our Partners at: info@sblaw.vn or call to our Office:
Ha Noi Office: +84 (4) 62 62 0246
HCM Office: +84 (8) 35 208 101.
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