In the process of international integration, Vietnam has been striving to improve its legal framework to attract foreign investment. However, to ensure national interests and sustainable development orientation, Vietnamese law still sets certain limitations on market access for foreign investors, especially in sensitive sectors. DNP Vietnam Law Firm will provide FDI enterprises with information on market access conditions as well as prohibited and restricted investment sectors in Vietnam.
1. Market Access Conditions for FDI Enterprises:
Legal Basis: Clause 10, Article 3 of the Law on Investment 2020
– Market access conditions for foreign investors are the requirements that foreign investors must meet in order to be included in the List of sectors and industries with restricted market access for foreign investors, as stipulated in Clause 2, Article 9 of the Law on Investment 2020.
– According to Clause 2, Article 9 of the Law on Investment 2020, the List includes:
- Sectors and industries not yet open to market access;
- Sectors and industries with conditional market access.
– According to Clause 3, Article 9 of the Law on Investment 2020 provides that market access conditions may include:
- Foreign ownership ratio in an economic organization;
- Forms of investment;
- Scope of investment activities;
- Investor capacity and participating partners in investment activities;
– Other conditions as prescribed by laws, National Assembly resolutions, ordinances, resolutions of the Standing CGovernment decrees, and international treaties to which the Socialist Republic of Vietnam is a party.
2. Prohibited Investment Sectors for FDI Enterprises
Legal Basis: Article 6 of the Law on Investment 2020
The following business activities are entirely prohibited for all investors, regardless of domestic or foreign origin:
- Trading in narcotic substances listed in Appendix I of the Law;
- Trading in chemicals and minerals banned under Appendix II;
- Trading in specimens of endangered wildlife and plants listed in Appendix III;
- Prostitution, human trafficking, trading in human tissues, organs, and body parts;
- Cloning-related activities on humans;
- Trading in fireworks (except for certain types as regulated).
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3. Restricted Market Access Sectors for FDI Enterprises
| Information | Sectors Not Yet Open for Market Access | Sectors with Conditional Market Access |
| Legal basic | – Clause 2, Article 9, Law on Investment 2020- Section A, Appendix I – Decree No. 31/2021/ND-CP | – International treaties such as WTO, CPTPP, EVFTA, RCEP- Article 9, Law on Investment 2020- Section B, Appendix I – Decree No. 31/2021/ND-CP |
| Details | – Investigation and security services (excluding private security services)- Public administrative and social order services- Publishing, journalism, and broadcasting services[…] | – Production and distribution of cultural products, including audiovisual recordings- Production, distribution, and screening of TV programs and stage, musical, cinematographic works- Provision of broadcasting and television services[…] |
4. Guidance on Accessing and Applying Market Access Regulations
To facilitate investment activities, Vietnam has established the National Portal on Foreign Investment, which integrates the List of sectors with restricted market access based on each international agreement and specific commitments. FDI enterprises can look up relevant information at:
Refer to Vietnam’s specific commitments under WTO, EVFTA, CPTPP, etc.
https://fdi.gov.vn – select the section “Market Access for Foreign Investors”
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