THE 2020 LAW ON INVESTMENT OFFICIAL IN FORCE FROM JANUARY 01, 2021

Pursuant to the 2020 Law on Investment issued by the Government on June 17, 2020 and coming into effect from January 01, 2021:

– Debt collection services which has been removed from list of conditional business lines, shall officially be transferred into the List of banned business lines.

– Until January 01, 2021, the conditional business lines will be reduced to 227 lines. In which:

(i) 24 business lines are abolished;

(ii) 8 business lines are added;

(iii) 14 business lines are amended.

– Supplementing a number of sectors and trades eligible for investment incentives compared to the old regulations:

(i) Higher education;

(ii) Producing products formed from scientific and technological results according to the provisions of law on science and technology;

(iii) Production of products on the list of industrial products supporting development priority;

(iv) Preserving drugs, producing medical equipment;

(v) Production of goods and services that create or participate in industry value chains and clusters.

– Adding a number of new regulations related to:

(i) Incentives and special support for investment, including:

• Newly established investment projects (including the expansion of those newly established projects) of innovation centers, research and development centers, of which the investment capital is at least of VND 3,000 billion, or at least VND 1,000 billion is disbursed within three (03) years from the day on which the Investment Registration Certificate or decision of investment policies is issued; the national innovation center established under decision of the Prime Minister;
• Projects of investment in the business lines given special investment incentives in which the investment capital is at least of VND 30,000 billion, or at least VND 10,000 billion within three (03) years from the date on which the Investment Registration Certificate or decision of investment policies is issued.

(ii) Two (02) groups of subjects are not allowed to extend the project implementation, including:

• An investment project using outdated technology, potentially causing environmental pollution, resource intensive;
• An investment project in which the investor has to transfer without compensation of assets to the Vietnamese State or Vietnamese party.

Best regards,