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Market access conditions applicable to foreign investors
Clause 10, Article 3, Law on Investment No. 61/2020/QH14 prescribes that:
Market access conditions applicable to foreign investors means conditions that foreign investors must satisfy in order to invest in sectors and trades on the List of sectors and trades in which foreign investors are subject to market access restrictions.
Except for the sectors and trades in this List, foreign investors can access market as the domestic investors. the Government shall announce the List of sectors and trades in which foreign investors are subject to market access restrictions, based on laws or resolutions of the National Assembly, ordinances or resolutions of the Standing Committee of the National Assembly, decrees of the Government, and treaties to which the Socialist Republic of Vietnam is a contracting party.
Including:
- Sectors and trades in which market access by foreign investors are not yet permitted
- Sectors and trades in which foreign investors are subject to conditional market access.
In particulars, in accordance with Clause 3, Article 9, the Law on Investment, the market access conditions applicable to foreign investors include:
- Charter capital holding rate of foreign investors in economic organizations;
- Form of investment;
- Scope of investment activities;
- Capacity of investors; partners participating in investment activities;
- Besides, other conditions specified in laws or resolutions of the National Assembly, ordinances or resolutions of the Standing Committee of the National Assembly...
Besides, in accordance with Clause 3, Article 15, Decree No. 31/2021/ND-CP in addition to market access conditions for the sectors and trades specified in the List of sectors and trades in which foreign investors are subject to market access restrictions if wishing to carry out business investment activities in Vietnam, satisfy the following conditions (if any):
- Using land, employees, natural resources and minerals;
- Producing goods or providing public services or goods or services for which the State holds monopoly;
- Owning or trading in houses or real estate;
- Applying the State’s supports or subsidies for certain sectors or trades or developing regions or territorial areas;
- Participating in programs or plans on equitization of state enterprises;
Therefore, the market access conditions applicable to foreign investors are applied in accordance with the forms prescribed in Clause 3, Article 9 of the Law on Investment.
Principles for market access conditions applicable to foreign investors
As above, one of the principles for market access conditions applicable to foreign investors always focuses:
Except for the sectors and trades on the List of sectors and trades in which foreign investors are subject to market access restrictions, foreign investors may access the market like domestic investors.
At the same time, pursuant to Article 17, Decree No. 31/2021/ND-CP, the market access conditions applicable to foreign investors is applied under the principles as follows:
- Foreign investors may not invest in sectors and trades in which market access is not yet permitted for them.
- For sectors and trades in which foreign investors are subject to conditional market access, foreign investors must satisfy market access conditions posted under regulations.
- Market access conditions for sectors and trades for which Vietnam has not yet made commitments on market access for foreign investors shall be applied as follows:
- In case Vietnam’s law has provisions on market access restrictions for foreign investors in such sectors and trades, such provisions shall apply
- Foreign investors in different sectors and trades must satisfy all the market access conditions for that sectors and trades.
Here is all information on market access conditions applicable to foreign investors.
