The State Government promulgates Decree 31/2021/ND-CP into the industry on March 26, 2021 detailing and guiding the implementation of a number of articles of the investment law on business investment conditions; industries, trades and market access conditions for the foreign-invested state; business investment guarantee; investment incentives and support; Investment procedures; overseas investment activities; investment Promotion; State management over business investment activities in Vietnam and investment abroad.
- Specific regulations on areas affecting national defense and security
According to the provisions of the Investment Law 2020, the case of “Foreign investors contributing capital, purchasing shares, purchasing capital contributions from economic organizations with certificates of land use rights in islands and communes, has also been added. border wards and towns; coastal communes, wards and towns; In other areas that affect national defense and security”, Decree 31/2021/ND-CP specifically stipulates “other areas affecting national defense and security” to help investors have a comprehensive look at this issue and proceed to select the location of the investment project in accordance with the provisions of law in the case of foreign investors investing in Vietnam.
- Detailed regulations on assurance of investment incentives in case of law change Guaranteed investment incentives have not previously had a specific definition, but are understood as incentives that investors are entitled to according to the provisions of the legal document that took effect before the time the new legal document took effect. through investment incentives specified as follows:
– In case the newly promulgated legal document stipulates that investment incentives are higher than the investment incentives currently being enjoyed by the investor, the investor is entitled to investment incentives according to the provisions of the new legal document for investment incentives. the remaining incentive period of the project
– In case the newly issued investment incentives are lower than the investment incentives previously enjoyed by the investor, the investor may continue to apply the investment incentives according to the previous regulations.
- Supplementing the List of Restricted Market Access for Foreign Investors
Decree No. 31/2021/ND-CP stipulates a profession as follows:
– Foreign investors are not allowed to invest in 25 industries or trades that have not yet had access to the market as prescribed in Section A Appendix I issued herein
– The list of industries and trades with conditional market access for foreign investors includes 59 items. If foreign investors choose to invest in industries or trades other than these 84 industries, they are entitled to the same market access conditions as those applied to domestic investment regulations.
– Decree 31/2021/ND-CP also stipulates access conditions for industries where Vietnam has not yet committed to market access for foreign investors.
- Regulations on foreign investors being Vietnamese citizens for foreign in investment activities in Vietnam
Decree 31/2021/ND-CP also stipulates that, in addition to the subjects mentioned in the Investment Law 2020, investors who are Vietnamese citizens with foreign nationality in investment activities in Vietnam are regulated. separately in Clause 2, Article 16. At that time, they may choose to apply the market access conditions and procedures as applied to domestic or foreign investors.
- New conditions for investment incentives
Decree 31/2021/ND-CP supplements the list of industries eligible for investment incentives including:
– Science and technology, electronics, mechanics, material production, information technology
– Agriculture
– Environmental Protection
– Education, culture, society, sports, health
– Other jobs
Decree 31/2021/ND-CP takes effect from March 26, 2021.
