Conditional Business Lines for Foreign Investors in Vietnam

Before investing in Vietnam, a foreign investor must know whether its intended business line is open, conditional or restricted. This classification determines ownership limits, investment form and licensing.

Three access categories

Under the Law on Investment 2020, business lines fall into three groups for foreign investors: freely permitted (treated like domestic investors), conditional access (caps on ownership, required partners, or specific licences), and not yet accessible. Lines outside the restricted list are generally open.

The market-access negative list

The list of restricted market-access sectors is set out in Decree 31/2021, guided by Vietnam's WTO commitments and free-trade agreements. Conditions may include a foreign-ownership ceiling, a joint-venture requirement, a minimum-capital or experience condition, or a specific operating licence.

How to check your line

Identify the exact business line and its industry code, then check it against the negative list and the relevant treaty schedules. Where a line is conditional, the licensing authority applies the strictest applicable condition. Getting this classification right at the outset avoids rejected applications later.

Frequently asked questions

How do I know if my sector is open to foreign investment?

Check the intended business line against the market-access negative list in Decree 31/2021 and applicable treaty commitments.

What conditions can apply?

Foreign-ownership caps, joint-venture requirements, minimum capital or experience, or specific licences.

What if the line is not on the list?

It is generally open, and the foreign investor is treated like a domestic one.

How LTV Law helps

LTV Law checks market-access conditions and structures investments accordingly. See our company-formation guide or contact our team.

This article is for general information only and does not constitute legal advice.