Conditions for Foreign Investment in Agriculture, Forestry, and Fishery-Related Services in Vietnam
Conditions for Foreign Investment in Agriculture, Forestry, and Fishery-Related Services in Vietnam
01 - Industry Classification (Details of Business Activities)
The specific activities that fall within agriculture, forestry, and fishery-related services (covering agriculture, forestry, hunting, and aquaculture) are as follows.
Crop Cultivation-Related Services
Crop treatment services
Spraying of plant protection agents, pest and disease control, growth promotion, crop insurance, etc.
Pruning and trimming of perennial plants
Soil preparation, sowing, planting, and harvesting operations
Pest control for crop varieties
Inspection of seeds and seedlings
Rental of agricultural machinery with operator
Irrigation and drainage services
Livestock-Related Services
Breed improvement, growth promotion, and activities that facilitate the production of animal products
Inspection, feeding, castration of livestock and poultry, cleaning of barns, manure collection, etc.
Artificial insemination-related services
Sheep shearing
Grazing and pasture rental services
Animal rearing and training
Sorting and washing of bird eggs, skinning, and other related activities
Horseshoeing and horse care management
Post-Harvest Services
Pre-shipment preparation work (cleaning, sorting, primary processing, drying, etc.)
Cotton ginning
Primary processing of tobacco and tobacco leaf
Primary processing of coca leaf
Hunting, Trapping, and Related Services
Commercial hunting and trapping
Capture of animals for food, fur, research, zoo, or pet purposes
Production of fur, hides, and feathers obtained through hunting
Capture of marine mammals (walrus, seals, etc.)
Collection of swiftlet nests in caves and construction of houses to attract swiftlets
Rearing and taming of wild animals at zoos
Service activities that support commercial hunting
Forestry-Related Services
Irrigation and drainage activities for forestry
Contracted forestry work (digging, planting, cultivation, harvesting, etc.)
Forest protection and pest/disease control for forestry plants
Assessment and estimation of tree counts and yields
Forest management, and wildfire prevention and firefighting
Rental of forestry machinery with operator and other forestry services
Transport of felled timber and forest products out of the forest
Primary timber processing within the forest
Rearing, rescue, and care services for forest flora and fauna
02 - Market Access Restriction Conditions
2.1. Agriculture, Hunting, and Forestry-Related Services
Under the World Trade Organization (WTO), the Vietnam-Japan Economic Partnership Agreement (VJEPA), the Vietnam-Korea Free Trade Agreement (VKFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the EU-Vietnam Free Trade Agreement (EVFTA), foreign investors are permitted to invest only through a joint venture or a Business Cooperation Contract (BCC). The foreign party's capital contribution ratio must not exceed 51% of the joint venture's charter capital.
2.2. Aquaculture
Under the 1982 United Nations Convention on the Law of the Sea, Vietnam reserves the right to maintain and apply any measures with respect to fisheries in waters over which it holds sovereignty or jurisdiction.
The following fields are not open to investment licenses for foreign investors:
Fishing (catching) in marine and freshwater areas
Collection of natural coral and natural pearls
03 - Business Conditions Under Vietnamese Domestic Law
3.1. Investment Conditions
Foreign investor capital ratio: Investment is permitted only through a joint venture with a Vietnamese company or a BCC, with a maximum contribution ratio of 51%.
Forms of investment: (i) Establishment of an economic organization (maximum contribution ratio of 51%); (ii) Acquisition of shares or capital contributions (maximum contribution ratio of 51%)
3.2. Business Conditions (Applicable to Both Foreign and Domestic Investors)
Operating Conditions for Agriculture-Related Services
(1) Food Safety and Hygiene Conditions
Under Articles 19 and 20 of the Law on Food Safety (2010) and Article 11 of Decree No. 15/2018/ND-CP, facilities engaged in the production and sale of agricultural products must obtain a certificate of conformity with food safety and hygiene conditions.
Ensuring a suitable location with a safe distance from hazardous substances and sources of contamination
Securing a water source that meets applicable standards
Full provision of equipment for handling, processing, packaging, storing, and transporting raw materials, together with sterilization, disinfection, and pest control equipment
Establishing a waste treatment system and complying with environmental protection regulations
Maintaining food safety management records (documentation of raw material sourcing and the production process)
Ensuring employee health management and thorough food safety training
Maintaining food storage areas with proper temperature and humidity control, pest and animal prevention, and hygiene management
(2) Facility and Technical Conditions Under Decree No. 123/2018/ND-CP, the following conditions must be satisfied:
Completion of business registration and acquisition of related licenses
Compliance with infrastructure requirements for production and processing facilities
Compliance with health and safety standards (consumer protection and environmental protection)
Compliance with product quality control regulations
Compliance with environmental protection and natural resource conservation regulations