Which industries and trades are foreign investors prohibited from investing and doing business in?

This English version is translated from the Vietnamese original. In case of any discrepancy, the Vietnamese version prevails.

Which industries are foreign investors prohibited from investing and doing business in according to the 2025 Investment Law?

According to Clause 1, Article 6 of the 2025 Investment Law (No. 143/2025/QH15), as amended and supplemented by Law No. 24/2026/QH16 dated August 24, 2026, the list of prohibited industries for investment and business applies equally to both domestic and foreign investors. These are sectors where the State imposes an absolute prohibition — inaccessible under any form of investment.

「Prohibited investment and business activities are as follows: a) Trading in narcotic drugs; b) Trading in toxic chemicals and minerals; c) Trading in specimens of endangered wild plant and animal species; d) Trading in prostitution services; e) Buying, selling, trading in human bodies, corpses, human body parts, and human embryos; f) Business activities related to asexual reproduction on humans; g) Trading in explosives; h) Debt collection services; i) Trading in national treasures; k) Trading in export of antiquities and cultural relics; l) Trading in electronic cigarettes and heated tobacco products; m) Trading in N₂O gas for human respiratory use, except for medical purposes, food technology, testing, scientific research, and other purposes as prescribed by the Government.」

Important Note: Clause 2, Article 6 of the 2025 Investment Law permits the production and use of certain products within groups a, b, c above (narcotic drugs, toxic chemicals, endangered specimens) for purposes of analysis, testing, scientific research, medical use, pharmaceutical production, criminal investigation, national defense, and security — but only in accordance with separate Government regulations and not as ordinary business activities.

Besides the list of prohibited industries, in which sectors do foreign investors face market access restrictions?

In addition to the prohibited industries, foreign investors are subject to a second layer of control: the list of industries with restricted market access. According to Clause 2, Article 8 of the 2025 Investment Law, the Government publishes this list comprising two categories:

• Industries not yet open to market access — foreign investors are not permitted to invest regardless of meeting other conditions.

• Industries with conditional market access — foreign investors may invest but must satisfy specific conditions prescribed by law.

Conditions restricting market access for foreign investors may include: the ratio of charter capital ownership, forms of investment, scope of operations, investor capacity, and other conditions under domestic law or international treaties to which Vietnam is a party (Clause 3, Article 8 of the 2025 Investment Law).

What should foreign investors pay attention to regarding supplementary conditions when doing business in Vietnam?

In addition to industry-specific market access conditions, foreign investors and economic organizations with foreign investment capital must also satisfy additional conditions (if any) relating to:

• Land use, labor, natural resources, and minerals;

• Production and supply of public goods or state-monopolized goods and services;

• Ownership and business of residential real estate and property;

• Application of state support or subsidy mechanisms for certain industries and sectors;

• Participation in equitization programs or plans for state-owned enterprises.

Note: Some regulations on supplementary conditions have been replaced or supplemented by newly enacted laws. Investors should verify the current provisions of each specialized sector before application.

Which foreign investment projects require approval of investment policy?

Beyond sectoral prohibitions and restrictions, foreign investors should note that certain types of projects must undergo the procedure of approval of investment policy pursuant to Article 24 of the 2025 Investment Law. Notably, Clause 7, Article 24 provides that foreign investors in the sectors of telecommunications services with network infrastructure, forestry, publishing, and press must obtain approval of investment policy regardless of project scale. This is a requirement specific to foreign investors and does not apply similarly to domestic investors.

What should enterprises do to verify industries before investing?

Before implementing any project in Vietnam, foreign investors should take the following verification steps:

1. Cross-check the intended industry with the prohibited list in Article 6 of the 2025 Investment Law and other applicable current regulations;

2. Consult the list of industries with restricted market access published by the Government pursuant to Article 8 of the 2025 Investment Law and any amendments or supplements thereto;

3. Determine whether the project falls within the scope requiring approval of investment policy under Article 24 of the 2025 Investment Law;

4. Verify supplementary conditions by specialized sector (land, labor, real estate, etc.) in accordance with current provisions and related sector-specific documents.

If you have any questions regarding industry eligibility, market access conditions, or procedures for obtaining approval of investment policy, A&D Law Firm - corporate legal counsel in Vietnam - is ready to assist enterprises in assessing legal risks and developing investment roadmaps in compliance with current regulations.

This article is for general informational purposes only and does not substitute for formal legal advice for specific cases. Legal provisions may change over time. Please contact a lawyer for advice tailored to your situation.

Need legal advice? Contact us now. Hotline: 0896868989