Foreign Direct Investment

A Brief Overview

Vietnam is undergoing fundamental changes to form the basis for its attractiveness and competitiveness in preparation for the ASEAN Economic Community (AEC), the upcoming trade agreements including the EU-Vietnam FTA and the Transpacific Partnership Agreement (TPP).

Since July 2015, a number of new laws and regulations governing foreign investment, enterprises, real estate and foreign ownership limits have come into effect. For example, the new Law on Investment and the new Law on Enterprises:

1. clarify definitions of foreign-invested enterprises;
2. facilitate M&A activities;
3. reduce the number of prohibited and conditional business sectors;
4. reduce statutory business licensing times;