Vietnam

Foreign investment restrictions

In several fields, foreign investment will not be licensed or will only be licensed under special conditions. In accordance with the 2020 Law on Investment, a decree was issued that provides the lists of business sectors where market access by foreign investors is not allowed or allowed with certain conditions.

Exchange controls

All buying, selling, lending, and transfer of foreign currency needs to be made through credit institutions and other financial institutions authorised by the State Bank of Vietnam (SBV).

Outflow of foreign currency by transfer is authorised for certain transactions, such as payments for imports and services abroad, refund of loans contracted abroad and payment of interest accrued thereon, transfer of profits and dividends, and revenues from transfer of technology.

All monetary transactions in Vietnam must be undertaken in Vietnamese dong. Exceptions are applicable to payments for exports made between principals and their agents, and payments for goods and services purchased from institutions authorised to receive foreign currency payments such as for air tickets, shipping and air freight, insurance, and international communications.

Forms of doing business

According to the Law on Enterprises, a foreign-invested enterprise may be established as either a single member limited liability or a limited liability with more than one member, a joint-stock company, or a partnership.

Intellectual property (IP)

Intellectual property (IP) rights in Vietnam are protected under the Civil Code and the Law on Intellectual Property, along with various subordinate legislation. Vietnam is a signatory to key international agreements, including the Paris Convention, Madrid Agreement, and Patent Cooperation Treaty, and has a copyright agreement with the U.S. under the Vietnam-U.S. Bilateral Trade Agreement, which obligates adherence to the Berne Convention.

On November 12, 2018, Vietnam’s National Assembly ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), allowing five years to align its IP laws with CPTPP provisions. Amendments to the IP Law were ratified in 2019 and 2022 to enhance IP protection and meet international commitments, with the latest amendments effective from January 1, 2023, except for agricultural chemical test data protection regulations, which will take effect on January 14, 2024.