List of conditions levels playing field for investors

Investors breathed a sigh of relief as the long-awaited list of investment conditions was finally released last week

The investor community can now put their minds at ease following the Ministry of Planning and Investment’s (MPI) announcement. The entire list of investment conditions is now available through the national information portal on foreign investment, at dautunuocngoai.gov.vn.

Investors who intend to partake in conditional businesses now have clear guidelines of what preparations they must make prior to submitting an investment proposal.

The new move is also expected to put an end to the situation whereby foreign investors wishing to operate in conditional business fields receive unequal treatment in comparison to domestic investors. The measures should also help shorten the time required to process requests for investment certificate provisions.

The list was reviewed and gathered in accordance with regulations set by Item 1, Clause 13 in governmental Decree No.118/2015/ND-CP dated November 12, 2015, which follows the implementation guidelines outlined under the new Law on Investment.

The list of conditions was drawn up by the MPI in collaboration with various ministries and organisations to produce a summary of business fields and areas, as well as investment conditions which apply to foreign investors. The information for this list was systematically gathered through various international conventions on investment, as well as relevant laws, ordinances and decrees.

The list applies to sectors and sub-sectors included in the statement of commitments made by Vietnam to the World Trade Organization (WTO), and other international treaties on investment. Sectors and sub-sectors that are not a part of Vietnam’s WTO commitments and other treaties, but operate under foreign investment conditions regulated by Vietnamese laws also appear in this list.

Not on the list, however, are sectors and sub-sectors that do not yet enjoy investment conditions that apply to foreign investors under Vietnamese laws.

Therefore, in case the foreign investors wishing to operate in these sectors, the investment registration agencies must seek approval from the MPI and relevant state management authorities.

The list also states that should there be any changes to the shareholding rate of foreign investors in business organisations, or the investment model used, then the conditions applied to foreign investors available at the national information portal will be amended accordingly. In cases where the conditions outlined on the national information portal contradict those regulated by international treaties on foreign investment, investors will follow these treaties’ regulations instead.