The latest Investment Law 2020 stipulates 227 conditional business lines and also unconditional business lines. The regulations related to the subjects of application, business lines and licensing application documents include licensing procedures and the agency responsible for licensing. Based on general regulations on conditional business lines, detailed regulations and specific conditions of specialized laws, the administrative management agency directly related to the business line shall consider and grant licenses to enterprises that fully meet the conditions prescribed by law.

1. Legal regulations on business lines in 2024

There will be many changes in our business activities and departments according to current laws. Individuals and organizations are free to do business in industries and professions that are not prohibited by law. However, for many reasons, including national security and public health, the law stipulates that many industries and professions must comply with “prerequisites” before being able to register to establish a company.

1.1 Industries prohibited from investment and business in 2024

According to the Investment Law 2020, the following 8 industries are prohibited from doing business: drug trafficking, trading in harmful chemicals. Trading in specimens of wild animals and plants is regulated by the Convention on International Trade in Endangered Species of Wild Fauna and Flora. Specimens of endangered and rare wild animals Group I, prostitution, human trafficking, human tissue, body parts, human fetuses. Business activities related to human cloning, asexual reproduction; explosives business.

1.2 Conditional business lines 2024

The list of “conditional business lines” includes 227 business lines. Therefore, companies wishing to do business in this industry must fully comply with certain requirements. For example, if they want to produce craft wine for business, they must register for the craft wine production business and ensure conditions on environmental protection, quality, food safety and labeling of wine products according to the provisions of law.

1.3 Business lines requiring legal capital

Legal capital is the minimum capital required to start a business. Industries requiring legal capital are often large and risky. The legal capital level is prescribed by the government for each industry.

For example: Overseas labor service activities have a legal capital of VND 5,000,000,000 or more and a deposit of VND 1,000,000,000 or more as prescribed in Article 6 and Article 10, Decree 38/2020/ND-CP.

1.4 Business lines requiring a practice certificate

Therefore, companies wishing to do business in these fields need to have a professional certificate of the legal representative/owner/direct manager/employee in the company. For example, if a company provides accounting services, the director and employees in the company must have an accounting certificate.

1.5 Penalties for doing business in an incorrect business line

According to Decree No. 98/2020/ND-CP of the Government, the fine ranges from VND 5,000,000 to VND 10,000,000 for business activities that violate the scale, subjects, scope, duration, location, etc. of the location or goods specified in the granted business license.

A fine of VND 10,000,000 to VND 15,000,000 for violations: Trading in goods and services in conditional business fields or business fields without a Business License as prescribed. Regulations; trading in goods and services in conditional business fields when the granted Business License expires.

2. Business sectors without conditions in 2024

According to statistics from the Ministry of Planning and Investment, there are currently 386 conditional business sectors and transactions scattered in 391 legal documents. Investment Law No. 67/2014/QH13 dated November 26, 2014 alone has 267 conditional categories. Nearly 70% of the total number of conditional activities.

Since July 1, 2015, the number of prohibited business sectors has decreased to only 11.

Considering that the number of conditional business sectors accounts for a large proportion of Vietnam’s economic structure, the Ministry of Planning and Investment is proposing to eliminate 51 conditional business sectors. Below is a list of 51 business sectors without conditions proposed by the Ministry of Planning and Investment.

Considering that the number of conditional business lines accounts for a large proportion of Vietnam’s economic structure, the Ministry of Planning and Investment is proposing to eliminate 51 conditional business lines. Below is a list of 51 business lines that do not require conditions proposed by the Ministry of Planning and Investment.

Unconditional business lines include:

1. Leasing houses to foreign individuals and organizations for residence or office use
2. Logistics services mainly for Vietnamese people
3. Logistics services related to transportation for Vietnamese people
4. Other related logistics services for Vietnamese people
5. Petroleum transportation business
6. LPG transportation service
7. Transportation of industrial explosives
8. Fertilizer business is inorganic fertilizer
9. Export of inorganic fertilizer
10. Alcohol business
11. Retailing of tobacco products
12. Rice export business
13. Passenger transport business by contract and tourism vehicles
14. Air transport business
15. Basis for assessing English proficiency of aviation staff
16. Railway infrastructure business
17. Automobile warranty and maintenance
18. Conditions for those directly operating transportation business contracts of enterprises and cooperatives
19. Director of transportation service quality according to prescribed form
20. Conditions for maintenance of means of transport to ensure aircraft operation, air transport business and business aviation
21. Commercial aviation
22. Design, manufacture, maintenance and testing of aircraft, aircraft engines, aircraft propellers, aircraft equipment and tools
23. Investment project evaluation training facilities
24. Organizing training and fostering on bidding
25. Conditions for establishing a film enterprise
26. Sports activities of sports enterprises
27. Travel agency business
28. Vocational training services under 3 months for companies, training facilities only teaching vocational training under 3 months
29. Production and trading of fishing gear and equipment for aquatic exploitation
30. Building and converting fishing vessels
31. Aquaculture feed trading
32. Fertilizer trading (organic fertilizers and other fertilizers)
33. Exporting fertilizers (organic fertilizers and other fertilizers)
34. Conditions for granting a certificate of eligibility to conduct valuation services
35. Electrical games with prizes for foreigners
36. Publishing publications
37. Internet agents are public Internet access points
38. Training facilities granting certificates of supervision consultancy
39. Training and disseminating knowledge knowledge in the field of real estate brokerage, real estate valuation, management and operation of real estate transaction offices, business management
40. Training, improving professional qualifications, management and operation of apartment buildings
41. Project management consulting training
42. Construction survey consulting organization
43. Construction survey organization
44. Construction investment project establishment organization
45. Construction survey implementation organization
46. Foreign investors in construction activities
47. Cost management consulting organization
48. Lighting system management and operation unit, green trees.
49. Common infrastructure system management and operation unit
50. Capacity requirements for community development consulting organizations
51. Construction conditions for foreign organizations and individuals participating in urban planning

3. Which business lines do not require business registration?

Individual trading activities are a form of business that has long existed spontaneously, mainly within the framework of small and medium enterprises. More precisely, Article 3 of Decree 39/2007/ND-CP.

Accordingly, individual trading activities are defined as those who regularly participate in many or all activities permitted by law related to the purchase and sale of goods, provision of services and activities for business purposes.

However, they do not have to register their business according to the provisions of the Law on Business Registration and are not called “sellers” according to the provisions of the Commercial Code 2005. This specifically includes those who carry out the activities. The following business activities:

• Street trading is understood as buying and selling activities without a fixed location (peddler, street vendor or simultaneously peddling), including receiving books, newspapers, magazines and cultural products. This product is sold by a supplier authorized to handle it based on the Commercial Law.
• Small business means buying and selling small items with or without a fixed location.
• Snack selling is the activity of selling gifts, cakes, food, drinks (beverages) with or without a fixed location. Transit transactions are the purchase of goods elsewhere and selling them to wholesalers and retailers on each trip.
• Performing jobs such as: shoe shining, lottery ticket selling, locksmithing, car repair, car parking, car washing, hair cutting, painting, photography and other services with a fixed or non-fixed location. Self-employed commercial activities usually do not require additional business registration.

4. Some notes on business lines and occupations in 2024

Companies must comply with all contract terms when participating in conditional business. And this status must be maintained throughout the business process.

Prohibited acts: Trading in industries and occupations prohibited from investment and business. Doing business in conditional industries and occupations when not meeting the business conditions prescribed by the Investment Law or not maintaining business conditions during operation.

In particular, according to regulations, all companies when registering for new establishment or adding business lines must register according to the level 4 industry code (4-digit industry) of the Vietnam Economic Industry System.

Above, VIET MY LAW AND ACCOUNTING has basically compiled a list of conditional business lines in the list of non-conditional business lines. Please refer to it if you have any questions. For the most accurate answer, please contact Viet My. If you want to add a business unit or establish a business, please contact us to complete the process.