On 26 November 2014, the National Assembly of Vietnam passed the new Law on Investment 2014 and Law on Enterprises 2014. Both shall take effect from 1 July 2015 and replace the current Law on Investment 2005 and Law on Enterprises 2005.
Some of notable changes of these two new laws (based on the version approved by the National Assembly) are as below:
1. Law on Investment 2014
• A list of 6 prohibited business lines and 267 conditional business lines is now clearly stipulated in the Law, instead of 51 prohibited business lines and 386 conditional business lines currently stipulated in various legal documents.
In principle, investors shall be permitted to carry out investment activities in the business lines which are not prohibited under the Law.
Besides a majority of conditional business lines applied to both local investors and foreign investors (such as doing business in chemical, pharmaceutical, medical equipment sectors, etc.), there are several conditional business lines solely applied to foreign investors, including:
* Trading activities and activities directly related to the trading activities (i.e. trading and distribution)
* Education and vocational training activities
* Construction activities
* Urban planning services
The conditions applicable to investment in the conditional business lines shall be detailed in laws, ordinances, decrees and/or international treaties of which Vietnam is a member. No authorities below the Government shall be permitted to stipulate the investment conditions in the conditional business lines. All investment conditions stipulated in various legal documents issued prior to the effective date of this Law which are in contrary with this provision shall be abolished from 1 July 2016.
• The following investment projects shall be also entitled to investment incentives, in addition to the investment projects