Note on the business line for the enterprise when making investment activities

Note on the business line for the enterprise when making investment activities

Currently, Vietnam's law regulates the fields, the business line that enterprises are allowed to invest in relatively broadly. However, there will still be lines where business investment is prohibited, or business investment is conditional. So what should be acknowledged when choosing to invest in Vietnam? The following article HTC Vietnam Law Firm will provide information about this matter.

According to the law on enterprises, enterprises are entitled to do business in all industries that are not prohibited by law. However, when investing, enterprises should be aware of whether their business lines are prohibited from doing business and whether that industry is subject to accompanying conditions.

Law on investment 2020 banned these business lines

- Business in narcotic substances specified in Appendix I hereof;

- Business in chemicals and minerals specified in Appendix II hereof;

- Business in specimens of wild flora and fauna specified in Appendix 1 of Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of rare and/or endangered species of wild fauna and flora in Group I of Appendix III hereof;

- Prostitution business;

- Human trafficking; trade in human tissues, corpses, human organs and human fetuses;

- Business activities pertaining to asexual human reproduction;

- Trade in firecrackers;

- Provision of debt collection services.

However, narcotics; chemicals, minerals or samples of plants and wild animals of natural origin which are included in the Convention on International Trade in Endangered Species of Wild Fauna and Flora; Specimens of endangered, precious and rare species of forest plants, animals and aquatic animals of Group I, derived from natural exploitation specified in Appendix III of the Investment Law 2020, are used for analysis, testing and research. Scientific research, healthcare, pharmaceutical production, crime investigation, defense and security protection shall comply with the Government's regulations.

What is conditional business lines

Article 7 of law on investment 2020 stipulated that “Conditional business lines are the business lines in which the business investment must satisfy certain conditions for reasons of national defense and security, social order and security, social ethics, or public health.”

Currently, there are 277 conditional business lines which are included in Appendix IV, law on investment 2020.

Business investment conditions to be fulfilled are those specified in:

- Licenses;

- Certificates;

- Credentials;

- Written confirmation or written approval;

- Other requirements that must be satisfied by individuals and business organizations to conduct business investment activities without obtaining written confirmation from a competent authority.

Legal services HTC VN Law Firm provides related to business lines:

- Assess the conditions of customers and the ability to meet the needs of conditional business lines in accordance with the provisions of law;

- Support related legal issues in the process of business registration in conditional lines;

- Advice on documents, administrative procedures to comply with business investment conditions;

- Consulting on state management agencies, agencies competent to handle administrative procedures for business investment conditions.

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Dinh Thi Tuyet Mai/189; Date: 9/3/2022

Translator: Vu Ngoc Anh)