Market access conditions applied to foreign investors

Clause 10, Article 3 Law on Investment No. 61/2020/QH14 regulations:

“market access conditions applied to foreign investors” mean those which must be satisfied by foreign investors to make investment in the List of business lines with prohibited and restricted market access (hereinafter referred to as “the Negative List for Market Access”)

Except for industries and occupations in the List, foreign investors have the same market access as domestic investors.

The List includes:

- Prohibited business lines: Foreign investors are not allowed to invest in these industries and occupations.

- Restricted business lines: Foreign investors must meet the announced market access conditions.

Specifically, according to Clause 3, Article 9 of the Law on Investment No.61/2020/QH14 market access conditions applied to foreign investors include:

a) Holding of charter capital by the foreign investor in a business organization;

b) Investment method;

c) Scope of investment;

d) Capacity of the investor; partners participating in the investment activities;

e) Other conditions specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory.

In addition, foreign investors when investing and doing business in Vietnam must meet the following conditions (if any) according to Clause 3, Article 15 of Decree 31/2021/ND-CP:

- Use of land, employ workers; natural resources, minerals;

- Manufacture, supply of public services, goods or goods and services under state monopoly;

- Ownership, trade of housing, real estate;

- Application of assistances, aids of the State in certain industries, sectors or geographical areas;

- Participation in state-owned enterprise equitization programs or plans;

- Other conditions specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of Standing committee of the National Assembly, Decrees of the Government and investment-related international treaties that prohibit or restrict market access by foreign-invested business organizations.

Thus, market access conditions applied to foreign investors are applied according to the forms stated in Clause 3, Article 9 of the Law on Investment 2020.