59 Conditional Business Lines for Foreign Investors

Definition of Conditional Business Lines

Conditional business lines are sectors in which foreign investment is permitted, but only under specific conditions. These conditions are set by the Vietnamese government to protect national interests, public health, security, and the environment. They can involve additional licensing, caps on foreign ownership, or mandatory partnerships with local entities.

Key Categories of Conditional Business Lines

• Sensitive Industries: These include sectors like defense, media, and telecommunications, where national security concerns are paramount.
• Public Services: Sectors such as education, healthcare, and transportation, which directly impact public welfare, often have stricter regulations.
• Natural Resources: Industries involving natural resource extraction, like mining and oil and gas, are regulated to ensure sustainable development and environmental protection.
• Financial Services: Banking, insurance, and securities are highly regulated to maintain financial stability and protect consumer interests.

Common Conditions for Foreign Investors

• Ownership Limits: Some sectors have caps on the percentage of equity that foreign investors can hold. For example, in certain telecommunications services, foreign ownership is capped at 49%.
• Joint Ventures: In some industries, foreign investors are required to form joint ventures with Vietnamese partners. This is common in sectors like education and entertainment.
• Special Licenses and Approvals: Certain business lines require foreign investors to obtain specific licenses or approvals from relevant authorities. This can involve demonstrating technical expertise, financial capacity, or adherence to specific operational standards.
• Geographical Restrictions: There may be restrictions on where foreign-invested enterprises can operate, especially in areas deemed sensitive or critical for national security.

According to Decree No. 31/2021/ND-CP, which came into effect on March 26, 2021, there are specific conditional business lines for foreign investors. Therefore, when foreign investors establish a company with foreign capital in Vietnam, if they register for these conditional business lines, they must comply with the conditions stipulated in trade agreements, WTO commitments, and Vietnamese law. 
Below is a compilation of the most basic 59 conditional business lines for foreign investors by zora.vn:

1. Production and distribution of cultural products, including recorded materials.
2. Production, distribution, and screening of television programs and performing arts, stage, and cinema works.
3. Provision of radio and television services.
4. Insurance, banking, securities trading, and other services related to insurance, banking, and securities trading.
5. Postal and telecommunications services.
6. Advertising services.
7. Printing and publishing services.
8. Surveying and mapping services.
9. Aerial photography services.
10. Educational services.
11. Exploration, extraction, and processing of natural resources, minerals, oil, and gas.
12. Hydropower, offshore wind power, and nuclear energy.
13. Freight and passenger transportation by rail, air, road, river, sea, and pipeline.
14. Aquaculture.
15. Forestry and hunting.
16. Betting and casino business.
17. Security services.
18. Construction, operation, and management of river ports, sea ports, and airports.
19. Real estate business.
20. Legal services.
21. Veterinary services.
22. Trading of goods and related activities of foreign service providers in Vietnam.
23. Technical inspection and analysis services.
24. Tourism services.
25. Health and social services.
26. Sports and entertainment services.
27. Paper production.
28. Production of vehicles with more than 29 seats.
29. Development and operation of traditional markets.
30. Commodity exchange activities.
31. Domestic less-than-container-load (LCL) consolidation services.
32. Auditing, accounting, bookkeeping, and tax services.
33. Appraisal services; consulting on enterprise valuation for equitization.
34. Services related to agriculture, forestry, and fisheries.
35. Production and manufacturing of aircraft.
36. Production and manufacturing of locomotives and railway cars.
37. Production and trading of tobacco products, raw tobacco, and machinery and equipment specialized for the tobacco industry.
38. Publishing activities.
39. New building and repair of ships.
40. Waste collection services, environmental monitoring services.
41. Commercial arbitration, mediation services.
42. Logistics services.
43. Coastal shipping.
44. Cultivation, production, or processing of rare plants, breeding and raising of rare wildlife, and processing and handling of these animals or plants, including live animals and their products.
45. Production of building materials.
46. Construction and related technical services.
47. Assembly of motorbikes.
48. Services related to sports, fine arts, performing arts, fashion shows, beauty contests, and other recreational activities.
49. Aviation support services; ground handling services at airports; in-flight catering services; air navigation, surveillance, and meteorological services.
50. Ship agency services; ship towing services.
51. Services related to cultural heritage, copyright and related rights, photography, video recording, audio recording, art exhibitions, festivals, libraries, museums.
52. Tourism promotion and advertising services.
53. Representation, recruitment, booking, and management services for artists and athletes.
54. Family-related services.
55. E-commerce activities.
56. Cemetery business, cemetery services, and funeral services.
57. Seeding and chemical spraying services by aircraft.
58. Maritime pilot services.
59. Business lines under pilot mechanisms of the National Assembly, the Standing Committee of the National Assembly, the Government, or the Prime Minister.
Here are the 59 most basic conditional business lines for foreign investors in Vietnam. We hope this article will be useful for our readers.