Vietnam announces ban and restrictions on foreign investment in 84 industries

The list lists 25 business lines that foreign investors are prohibited from entering, including trade in goods and services that are subject to state monopoly; news activities and information collection in any form; fishing; judicial administration services; temporary imports for re-export activities; and tourism services, except inbound tourism services for international tourists.

Meanwhile, there are 59 business lines that are conditional on market access for foreign investors, such as the production and distribution of cultural products, including visual recordings; the production , distribution and broadcasting of television programmes and music , stage performances and film works ; postal and telecommunication services; educational services; the exploration , extraction and processing of natural resources , minerals, and oil and gas ; hydropower, offshore wind power and nuclear power; and gambling and casino business, among others.

Tran Thi Thanh Huyen, a lawyer at NH Quang and Associates, said publishing the restricted industry list is a difficult task because determining the business lines that are restricted to foreign investors in accordance with Vietnam's international commitments is quite complicated and time-consuming.

Investors can only make decisions if they know what they are allowed to do and under what conditions. When investing in a business that does not fall into either of the two lists, foreign investors will be treated as domestic investors for the purposes of market access.

In fact, in the first two months of 2021, Vietnam continued to receive good news in attracting foreign investment, and some large-scale investment projects also obtained investment licenses.

In order to welcome the influx of foreign investment, Phan Yousheng, former director of the Foreign Investment Bureau, said that Vietnamese functional agencies should continue to improve the investment environment and focus on multinational groups with capital and technological advantages.

At the beginning of 2021, many large investors registered to enter Vietnam, mainly in the field of high technology. In addition to attracting foreign investment, Vietnam has also made considerable achievements in commodity exports.

The move follows a positive assessment of Vietnam by Oxford Economics , highlighting the country’s growing role in the global manufacturing supply chain.

In a study released on April 13, it noted that Vietnam's merchandise exports grew 6.9% in 2020, a slowdown from 8.5% growth in 2019, but still a respectable achievement given a 7.8% drop in world trade.

Vietnam also further increased its world market share to 1.6% in 2020, from 1.4% in 2019 and 0.5% in 2010, as a sharp increase in foreign direct investment (FDI) strengthened the country's role in the global manufacturing supply chain .

Vietnam was able to take advantage of a boom in global demand for computers , other electronics and furniture related to working from home during the pandemic . The tailwind is likely to fade this year as the easing of restrictions allows production in other countries to return to normal, the report said.

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