List of investment conditions applied to foreign investors according to ASEAN Comprehensive Investment Agreement

A. Sectors and sub-sectors in which no investment license shall be issued to foreign investors.

I. Manufacturing

1. Production of firecrackers, including fireworks.

2. Production of sky-lanterns.

3. Production of fishing-net.

4. Production and supply of explosive materials .

5. Publishing, including: All kinds of publishing product.

6. Printing, including: Books (including books for the blind), pictures, maps, posters, leaflets, calendars; Molding and pressing money, value papers, forms with denomination, financial invoices, checks, etc.; Journals, Newspapers, Magazines, Periodicals, Counterfeit stamps, Certificates, Passport, National Identity Cards, etc.

7. Production of cigarettes and cigars.

8. Production of alcoholic beverages and soft drink.

9. Production of tobacco production.

10. Production of lubrication oil, grease.

11. Production of NPK fertilizer.

12. Production of construction glasses.

13. Production of clay bricks.

14. Production of vertical shaft cement production equipment and baked earth bricks and tiles

15. Production of D6-D32 mm construction steel rods and D15-D114mm seam steel pipe; zinc galvanized and color sheets.

16. Production of fluorescent tubes and bulbs.

17. Production of under 10000DWT cargo ships; under 800 TEU container ships; lighters and under 500 seats passenger ships.

18. Production of oil-well cement, barite and bentonite for drilling fluids.

19. Production and supply of industrial explosive materials using in oil and gas activities.

20. Cane sugar production.

II. Agriculture and forestry

21.Cultivating, producing or processing rare or precious plants, breeding or husbandry of precious or rare wild animal and processing of those plants or animals (including both living animals and processed matter taken from animals).

III. Services incidental to manufacturing

22. Services related to producing of industrial gas such as oxy, nitro, CO2 (solid or liquid).

23. Services related to producing of caustic soda NaOH (liquid) (CPC 88460).

24. Services incidental to producing of common used insecticides (Foreign investment is allowed in producing of input materials (toxin) only) (CPC 88460).

25. Services related to producing of common used paints (CPC 88460).

26. Services related to dairy processing (CPC 88120).

27. Services related to cane sugar production and sugar processing industry .

28. Services related to processing of beer and beverages (CPC 88411).

29. Services related to processing of tobacco products such as cigarette, cigar, pipe tobacco, chewing tobacco, farmer cut tobacco based on contracts or a fee:

– Processing of reconstituted tobacco based on contracts or a fee (CPC 88412).

– Processing of hookah based on contracts or a fee (CPC 88412).

30. Services related to processing of manufactured tobacco for production of cigarette based on contract or a fee (CPC 88412).

31. Services on distributing acid-sulphuric used in producing other products (CPC 88460).

32. Services related to production of fluorescent tubes and incandescent bulb (CPC 88480).

IV. Fishery

33. Fresh-water fishing, marine fishing.

34. Coral and natural pearl exploitation.

V. Services incidental to fishery

35. Services related to production of fishing net and twine for fishery sector (CPC 88200).

36. Services on repairing and maintaining of fishing boats.

37. Services related to exploiting of fresh-water fisheries.

38. Services related to quarantine, quality control of aquaculture and processing products (CPC 88200).

39. Services related to processing and preservation of aquatic products (CPC 8841).

40. Services on canning aquatic products (CPC 8841).

VI. Services incidental to mining and quarring

41. Completion of production technology and process for heat-insulation material for covering pipes (CPC 88520).

42. Preparation for the following services:

– Production of aromatic chemicals for gas industry (CPC 88300).

– Discharged water treatment on platform and drilling mud supply (CPC 88300).

– Study on waste oil collection and treatment (CPC 88300).

– Covering reinforced concrete and anti-corrosive paint for oil and gas pipeline (CPC 88300).

– Producing gas tanks, gas fired cooker and gas equipment (CPC 88300).

– Issuing quality certification for gas equipment and facilities (CPC 88300).

43. Services related to testing, adjusting, repairing and maintaining industrial measure and control equipment for oil and gas sector (CPC 88300).

44. Oil and gas warehouse services (CPC 88300).

45. Oil and gas supply base services (CPC 88300).

46. Catering and allied services including food and foodstuff, clean water and vegetable to off-shore construction facilities (CPC 88300).

47. Manpower supply services including professional manpower, skills and foreign language training for manpower supplied to foreign countries, signing manpower supply contracts with foreign companies (CPC 88300).

48. Services related to gas processing: separating Bupro, Condensate (CPC 88300).

49. Leasing services related to other machines and equipment including specialized equipment in oil and gas industry (CPC 88300).

50. Services related to database for oil and gas study (CPC 88300).

51. Services related to database for geological study and seismic survey for oil and gas industry (CPC 88300).

52. Services related to geological and exploration drilling (CPC 88300).

53. Risk assessment, including field-survey, data collection, using special software on impact assessment of frequency and sensitiveness, proposing mitigation measures (CPC 88300)

54. Services on Environment Protection and Management, including: Environmental background study (CPC 88300); Establishing oil-spill response plan, including environmental sampling and analysis (sediment samples, biology, soil, water, air), measuring water and air quality, obtaining onsite spectrum, collecting and assessing data on nature (such as environmental climatic, and hydrographic data), socio-economic data, etc., making reports on environmental background study, environmental impact assessment, oil-spill response plan (CPC 88300).

B. Sectors and subsectors subject to conditions to be issued investment license

I. Manufacturing

1. Production of industrial explosive devices: Subject to planning requirement.

2. Cement production: Subject to planning requirement.

3. Production of ready mixed concrete, stone crushing: Subject to planning requirement.

4. Automobile assembly and manufacture: Subject to planning requirement.

5. Motorcycle assembly and manufacture: Subject to planning requirement.

6. Processing of aqua-product and canned seafood: Shall be in joint venture form, subject to materials, technology requirements.

7. Vegetable oil production and processing: In conjunction with development of materials zone.

8. Dairy processing: In conjunction with development of local raw materials resources.

9. Leather tanning: In conjunction with development of local raw materials resources and subject to environmental protection requirement.

10. Paper production: In conjunction with development of local raw materials resources.

11. Production of automobile tires and tubes up to 450mm: Subject to quality requirement.

12. Production of rubber gloves, labor sanitary boots: Subject to quality requirements.

13. Assembly of marine engines: Subject to technology requirements.

14. Production of electro-mechanical and refrigeration equipment: Subject to technology requirement.

15. Manufacturing of cultivation, processing, reaping machines, insecticide pumps, spare parts of agricultural machines and engines: Subject to technology and quality requirements.

16. Production of household electric appliances: Subject to technology requirement.

17. Production of electrical fans: Manufacturing new types of products and subject to quality requirements.

18. Production of bicycle manufacture: Manufacturing new types of products and subject to quality requirements.

19. Production of sanitary ceramics, porcelain and tiles: Subject to technology requirement.

20. Manufacturing and assembling of transport vehicles: Subject to requirements on local raw material resources, technology and/or environment and/or quality which may be inconsistent with National Treatment article under ACIA.

21. Aircraft Manufacture Industry (CPC88590): Joint-venture form is only permitted and the foreign equity participation shall not exceed 49% of the charter capital of the joint venture.

22. Manufacture of railway rolling stock, spare parts, wagon and coach (CPC 88590): Joint-venture form is only permitted and foreign equity participation shall not exceed 49% of the charter capital of the joint venture.

II. Services incidental to manufacturing

23. Services related to manufacturing of railway rolling stock, spare parts, wagon and coach (CPC 88590): Joint-venture form is only permitted and foreign equity participation shall not exceed 49% of the charter capital of the joint venture.

24. Services related to manufacturing of water pumps used in agriculture (CPC 88530): Foreign investment is restricted, joint-venture form is only permitted and foreign equity participation shall not exceed 30% of the charter capital.

25. Services related to producing of plastic packing (CPC 88470): Foreign investment is restricted.

26. Services related to producing of PP packing (CPC 88492): Foreign investment is restricted.

27. Services incidental to manufacturing (CPC 885): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

28. Services related to producing of electronic scales for postal operation (CPC 88560): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

29. Services related to producing of small capacity microwave equipment, main distribution frame component (MDF), subscriber local loop equipment, terminal boxes of different size, wiring cables (CPC 88550): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

30. Services related to producing of small capacity telephone switching systems (CPC 88560): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

31. Services related to producing of optical fiber terminals (CPC 88560): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

32. Services related to producing of telephone sets (CPC 88560): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

33. Services related to producing of H3PO4 and HCl acids (CPC 88460): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

34. Services related to producing of chemical products such as phosphor, silicate-natri, tripolyphotphat, aluminium hydroxide, light powder, calcium chloride, active coal and black carbon (CPC 88460): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

35. Services related to manufacturing of products from structure metal (CPC 88520): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

36. Services related to manufacturing of barrels, tanks and metal containers (CPC 88460): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

37. Services related to processing of vegetable oil (CPC 88110): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA, in conjunction with development of local raw materials resources requirement.

38. Services related to manufacturing of lifting and loading equipment and machinery (CPC 88530): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

39. Services related to manufacturing of other common used machinery (CPC 88530): Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

40. Services related to testing and control of computer’s quality (CPC 88540):

– Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

– With the commitment to investment supports, training and technology transfer.

41. Services related to packaging integrated circuits (IC) (CPC 88560):

– Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

– Subject to technology transfer requirements.

42. Services related to assembling of electronics components, electronic and telecommunication products based on contracts or a fee (CPC 88550):

– Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

– Subject to technology transfer requirements.

43. Services related to designing of machinery and equipment by computer (computer-aid-design CAD) (CPC 88540):

– Subject to technology and quality requirements which may be inconsistent with National – Treatment Article under ACIA.

– Subject to technology transfer requirements.

44. Other services incidental to manufacturing:

– Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

– Subject to planning of the Government.

45. Services related to processing of alcohol (CPC 88411):

– Subject to technology and quality requirements which may be inconsistent with National Treatment Article under ACIA.

– Subject to brand, quality requirements.

III. Mining and quarrying

46. Oil and Gas:

– National Treatment and Senior Management and Board of Directors shall not apply to any measure relating to oil and gas activities carried out within Vietnam.

– Investment in oil and gas activities shall be subject to approval by the Government of Vietnam.

47. Mining and Quarrying, except oil and gas: National Treatment and Senior Management and Board of Directors may not apply to any measure in relation to mining & quarrying investment, including but not limited to the following sectors:

– Survey, exploration and exploitation of minerals.

– Exploitation, processing of rare and precious minerals, raw materials.

– Exploitation, processing of rare and precious minerals, rare metals, raw materials; exploitation of clay for production of construction materials; exploitation of high-quality sand for production of construction and technical glasses.

– Projects in exploitation of precious or rare mineral shall be subject to approval by the Government of Vietnam.

– Mineral activities related to the special, toxic, rare and precious minerals including basic geological investigation, prospecting, exploration, exploitation and processing.

48. Services incidental to mining and quarrying (CPC 883):

100% foreign-invested enterprises may be established.

– National Treatment shall not apply to any measure relating to the services incidental to mining and quarrying activities.

– Investment in the oil and gas related activities carried out within Vietnam shall be subject to law, regulations and procedures of Vietnam.

IV. Agriculture, Forestry, Fishery and related services

49. Fishery: National Treatment shall not apply to any measure relating to fishery activities within Vietnam sovereignty and jurisdiction waters as defined in accordance with the1982 UNCLOS.

50. Fry production and aquaculture operation (CPC 88200): Requirements on technology, fry quality of foreign invested enterprises must be higher than those that apply to local enterprises.

51. Services related to sending vessels for buying sea products (CPC 88200): Foreign investment is restricted, joint-venture form is only permitted and foreign equity participation shall not exceed 30% of the charter capital.

52. Services related to hiring of fishing boats and employees (CPC 88200): Foreign investment is restricted, joint-venture form is only permitted and foreign equity participation shall not exceed 30% of the charter capital.

53. Services related to processing on board for fish crustaceans and mollusks and other related services (CPC 88200): Foreign investment is restricted, joint-venture form is only permitted and foreign equity participation shall not exceed 40% of the charter capital.

54. Services related to exploiting of sea-products (CPC 88200): Foreign investment is restricted, joint-venture form is only permitted and foreign equity participation shall not exceed 40% of the charter capital.

55. Services on collecting and buying aquatic products (CPC 8820): No specified.

56. Forestry: National Treatment shall not apply to any measure relating to investment in forestry activities, including but not limited to the following:

– Not to grant license to exploit natural forest to foreign investors.

– To provide rights and obligations of foreign individuals and organizations different from those of Vietnamese individuals and organizations.

57. Services relating to investigation, evaluation and exploitation for natural forest, including exploitation of woods and wild, rare and precious animals, hunting, trapping, aerial seed planting and aerial chemicals spraying and dusting, microbial plant, animal genetic resource in agriculture: No investment license will be issued for foreign investors in these sub-sectors.

58. Services incidental to agriculture, hunting and forestry, other than services relating to investigation, evaluation and exploitation for natural forest, including exploitation of woods and wild, rare and precious animals hunting and trapping, aerial seed planting and aerial chemicals spraying and dusting, microbial plant, animal genetic resource in agriculture:

– Foreign investors are only permitted to invest in the form of joint-venture or business co-operation contract. Foreign equity shall not exceed 51% of the charter capital of joint venture.

– Foreign investments in these sectors are restricted to certain geographical areas as may be approved on a case-by-case basis.