Vietnam to Reduce 56 Conditional Business and Investment Sectors from July 1, 2026: New Opportunities for Investors

Vietnam’s decision to Reduce 56 Conditional Business and Investment Sectors marks a major step forward in its ongoing efforts to improve the business and investment environment. Under the Investment Law 2025 and Resolution No. 66.17/2026/NQ-CP, which take effect on July 1, 2026, the number of conditional business and investment sectors will be reduced from 198 to 142. The reform aims to simplify administrative procedures, lower compliance costs, and make market entry more accessible for businesses. While the changes are expected to benefit both local enterprises and foreign investors, understanding the remaining legal and licensing requirements remains essential for ensuring a smooth and compliant investment process in Vietnam.

How Will the List of Conditional Business and Investment Sectors Change from July 1, 2026?

Under the current legal framework, Vietnam maintains a list of 198 conditional business and investment sectors. These are business activities that enterprises may only conduct after satisfying specific legal requirements. Depending on the industry, such requirements may relate to statutory capital, professional qualifications, practicing certificates, facilities, operational permits, or other sector-specific conditions. Following a comprehensive review of existing business conditions, the Government has decided to remove or revise a significant number of sectors that are no longer considered necessary or can be effectively regulated through alternative supervisory mechanisms. As a result, the number of conditional business and investment sectors will be reduced to 142 from July 1, 2026. This means that 56 sectors will either be removed from the list or have their regulatory scope adjusted. The reform reflects Vietnam’s ongoing efforts to improve the investment climate, reduce unnecessary administrative barriers, and facilitate market entry for businesses.

The primary objective of this reform is to remove unnecessary barriers before market entry while maintaining appropriate regulatory oversight to ensure public safety, market order, and consumer protection.

Why Is the Reduction of Conditional Business Sectors Considered a Major Reform?

For many years, businesses operating in Vietnam have faced challenges arising from extensive pre-operational requirements. In numerous cases, enterprises completed their incorporation procedures but still had to spend months obtaining additional approvals or satisfying business conditions before commencing operations. The reduction of conditional business sectors signals a fundamental shift in the Government’s regulatory philosophy. Instead of focusing heavily on controlling businesses before they begin operating, regulatory authorities are increasingly adopting a management model that emphasizes oversight of actual business activities. This approach allows businesses to save time and resources while ensuring that authorities can continue to monitor compliance through inspections, audits, and enforcement measures when necessary. As Vietnam seeks to strengthen its competitiveness and attract greater domestic and foreign investment, this reform is viewed as a positive development that aligns the country’s regulatory environment with international best practices.

How Will Businesses Benefit from the New Policy?

The removal of unnecessary business conditions is expected to make market entry significantly easier for enterprises. Rather than allocating substantial resources to administrative procedures and licensing requirements, businesses will be able to focus more on developing products and services, building operational systems, recruiting personnel, and expanding their customer base. For newly established companies, the simplification of business conditions may considerably shorten the preparation phase before launching operations. This advantage is particularly important in service industries where speed to market often plays a critical role in competitiveness. Foreign investors may also benefit from a more transparent and accessible regulatory environment. Lower compliance costs and fewer administrative barriers can improve the attractiveness of Vietnam as an investment destination and support investment decisions in a highly competitive regional market. By reducing unnecessary procedural burdens, the reform is expected to improve operational efficiency and create more opportunities for both domestic and international investors.

Which Industries Are Expected to Be Affected by This Reform?

The adjustment of the conditional business sector list is not limited to a few specific industries. Instead, it affects a broad range of sectors that have traditionally been subject to various licensing and operational requirements. Industries related to professional services, logistics, labor services, education, construction, transportation, and supporting commercial activities are among those expected to benefit from the simplification of business conditions. Businesses considering investment or expansion in these sectors should closely monitor the new regulations, as the changes may help reduce project preparation time and lower compliance costs.

For many businesses, these changes may create new opportunities to enter the market or expand operations with fewer administrative obstacles than before.

Does the Removal of Business Conditions Mean Unlimited Investment Freedom?

This is one of the most common misconceptions among investors, particularly foreign investors. In reality, the list of conditional business and investment sectors represents only one component of Vietnam’s broader legal framework governing investment activities. The removal of a sector from this list does not automatically eliminate all legal requirements applicable to that business activity. Depending on the nature of the project, businesses may still need to comply with regulations concerning market access, technical standards, environmental protection, product safety, fire prevention requirements, or professional qualifications. For foreign investors, investment feasibility must be assessed based on multiple legal considerations, including market access commitments, foreign ownership restrictions, sector-specific regulations, and licensing requirements. Therefore, businesses should not assume that the removal of a sector from the conditional business list means that investment activities can be carried out without further legal obligations.

Many Specialized Licenses and Regulatory Requirements Will Remain in Effect

Although numerous business conditions are being removed or simplified, Vietnam’s sector-specific regulatory framework will continue to apply in many industries. These regulations serve important public policy objectives such as consumer protection, product quality assurance, public health, and safety. As a result, businesses may still be required to complete registration procedures, product declarations, operational licensing processes, or other specialized compliance obligations before commencing business activities.

For example, cosmetic products must continue to undergo product notification procedures before being placed on the market. Food-related businesses may still be subject to product registration and food safety requirements. Similar obligations remain applicable in sectors such as education, medical devices, retail trading, and the employment of foreign workers.

Consequently, businesses should conduct a comprehensive legal assessment of all applicable regulatory requirements rather than focusing solely on the list of conditional business sectors.

What Should Businesses Do Before the New Regulations Take Effect?

Between now and July 1, 2026, businesses should proactively review their investment plans and determine how the upcoming regulatory changes may affect their operations. This period provides an opportunity to reassess business lines, evaluate compliance requirements, and prepare implementation strategies under the new legal framework.

For foreign investors, reviewing market access conditions and industry-specific regulations should be an integral part of the investment planning process. Conducting a legal assessment at an early stage can help identify potential obstacles and reduce the risk of delays after the company has been established or the project has commenced. Careful preparation and a well-structured legal roadmap will enable businesses to take full advantage of the new regulatory environment while minimizing legal and operational risks.

Conclusion

The reduction of conditional business and investment sectors from 198 to 142 effective July 1, 2026, represents a significant milestone in Vietnam’s ongoing efforts to improve its investment environment. While the reform is expected to make market entry easier and reduce administrative burdens for businesses, it does not eliminate all legal obligations associated with investment and business activities. Companies should continue to assess market access conditions, sector-specific licensing requirements, and compliance obligations before implementing their projects. Green NRJ supports businesses throughout the entire process, from investment assessment and company establishment to licensing procedures and ongoing legal compliance, helping investors build a solid foundation for sustainable growth in Vietnam.