Decree 31/2021 detailing and guiding a number of articles of the Investment Law has just been issued. In which, specifying a list of 25 occupations that foreign investors have not yet had access to such as fishing and fishing; Services of sending workers to work abroad under contracts; Public postal service; Providing industrial property representation services and intellectual property assessment services; Business travel services (except international travel services for international tourists to Vietnam); Inspection (inspection, testing) and certification services for vehicles (including systems, components, equipment, components of vehicles).
The service of sending workers abroad to work under contracts is one of the 25 categories of occupations that foreign investors have not had access to in the Vietnamese market. Photo: VOV.
The Decree also states that the Ministry of Planning and Investment is the lead agency in reviewing and updating market access conditions for a list of 25 industries that foreign investors have not yet had access to to post on the National Investment Portal.
For other industries for which market access conditions have been specified for foreign investors who have not updated to the 25 restricted industries, they will comply with such international treaties and regulations.
In addition, when operating in Vietnam, foreign investors, foreign-invested economic organizations must satisfy the conditions for using land and labor; Production or supply of public goods or services or monopoly state goods or services; Join the equitization program and plan of state-owned enterprises.
Besides, the decree also stipulates a list of 59 industries that limit market access for foreign investors, such as insurance; Bank; securities business and other services related to insurance, banking, securities trading; Post and telecommunications services; Business betting, casino; Business logistics services; Coastal shipping.
In which, the 59th industry is the investment industries and trades under the pilot mechanism of the National Assembly, the National Assembly Standing Committee, the Government and the Prime Minister.
Investors who are Vietnamese and have additional foreign nationality can choose to apply market access conditions and investment procedures as applicable to domestic or foreign investors.
Out of the 84 industries selected by the Law on Investment, foreign investors are allowed to enter the market like domestic investors.
Also according to Decree 31, for industries and trades in Vietnam that have not yet committed to market access, investors will have access to the market if other laws and regulations are not prohibited and vice versa.
Decree 31 also stipulates that if many foreign investors contribute capital, buy shares, purchase capital contributions to economic organizations and are subject to the application of one or more international treaties on investment, the total ownership rate of all foreign investors must not exceed the highest rate. In addition, if more than one foreign investor of the same country or territory contributes capital, buys shares or purchases capital contributions to an economic organization, the total ownership ratio of all such investors must not exceed the ownership ratio specified in the investment treaty. At the same time, if an economic organization has many business sectors and trades, but the investment treaty has different provisions on the rate of ownership of foreign investors, the rate of ownership of foreign investors will be at the lowest level.
For public companies, securities companies, securities investment fund management companies or securities investment funds, securities investment companies, the ownership ratio of foreign investors must comply with regulations on securities.
One of the new features of Decree 31 is that for the first time, industries and occupations that limit market access for foreign investors have been announced in the same list.
Lawyer Vaibhav Saxena, Hong Duc Law Firm, said that the list of business lines that limit market access for foreign investors is specified in the 2014 Investment Law, but the Investment Law 2020 has regulations in a more detailed, specific way and in the same portfolio for investors to follow. The lists are made to be more in sync with the commitments on the sectors to be allowed to operate and the conditional business lines with foreign investors under Vietnam’s WTO commitments.
In addition, talking to the Investment Newspaper, Ms. Tran Thi Thanh Huyen (NHQuang Law Firm and Associates) said that the publication of a list of industries that restrict market access to foreign investors is a great effort. Because for a long time, identifying industries and professions that restrict market access according to international commitments that Vietnam is a member of is quite complicated and takes a lot of time. Meanwhile, investors only decide to invest when they know their procedures and investment conditions?
Source: ndh.vn – Translated by fintel.vn