What Are Conditional Business Sectors or Activities?

According to Clause 1, Article 7 of the Investment Law 2020, conditional business sectors or activities are those in which investment and business activities must meet specific conditions for reasons related to national defense, national security, social order and safety, social ethics, and public health.

The list of conditional business sectors or activities is stipulated in Appendix IV of the Investment Law 2020.

2. Business Conditions for Conditional Business Sectors or Activities

Enterprises wishing to engage in conditional business sectors or activities must meet the criteria regarding business licenses and investment conditions.

2.1 Enterprises Must Obtain a Business License

Article 27 of the Enterprise Law 2020 provides for the issuance of an Enterprise Registration Certificate as follows:

An enterprise shall be granted an Enterprise Registration Certificate if it meets the following conditions:

- The registered business sector or activity is not prohibited from investment and business activities;

- The enterprise's name complies with the provisions set out in Articles 37, 38, 39, and 41 of the Enterprise Law 2020;

- A valid enterprise registration dossier is submitted;

- The enterprise registration fee is fully paid in accordance with legal provisions on fees and charges.

If the Enterprise Registration Certificate is lost, damaged, or otherwise destroyed, the enterprise is entitled to a reissuance of the certificate upon payment of the prescribed fee.

2.2 Enterprises Must Meet Investment and Business Conditions

According to Clause 9, Article 2 of the Investment Law 2020, investment and business conditions refer to the conditions that individuals and organizations must satisfy when engaging in investment and business activities in conditional business sectors or activities.

Investment and business conditions vary depending on the specific sector or activity. However, such conditions must adhere to the following principles:

- Investment and business conditions must be established in accordance with the rationale for regulating conditional business sectors or activities and must ensure transparency, objectivity, and cost-effectiveness for investors in terms of time and compliance expenses.

- Regulations on investment and business conditions must include the following:

+ Subjects and scope of application of investment and business conditions;

+ Forms of application of investment and business conditions;

+ Content of investment and business conditions;

+ Dossier, procedures, and administrative processes for complying with investment and business conditions (if applicable);

+ The state management authority or competent authority responsible for handling administrative procedures related to investment and business conditions;

+ The validity period of licenses, certificates, or other confirmation documents (if applicable).

Investment and business conditions may take the following forms:

- Licenses;

- Certificates;

- Professional qualifications or certificates;

- Written confirmations or approvals;

- Other requirements that individuals or economic organizations must meet to conduct investment and business activities without requiring written confirmation from a competent authority.

The list of conditional business sectors or activities and their corresponding investment and business conditions must be published on the National Business Registration Portal.

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