Foreign Investment Restrictions and Business Conditions for the Manufacturing Industry in Vietnam
02 - Foreign Investment Restrictions and Business Conditions
03 - Points of Caution
04 - Overview of Procedures
17. Industry 2. Manufacturing No.1
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01 - Business Code
Business Name: Retail Business
Official Business Name Under Vietnamese Law
CPC Code
VSIC Code
Manufacturing
None
Must be searched for by product.
02 - Foreign Investment Restrictions and Business Conditions
In principle, 100% foreign-owned entry is permitted in the manufacturing industry. However, the following points must be noted.
(1) The business must not fall within a field where foreign investors are denied market access.
Please refer to the JETRO link for fields where foreign investors are denied market access.
(2) Where the business falls within a field subject to conditional market access for foreign investors, those conditions must be satisfied.
Please refer to the JETRO link for fields subject to conditional market access for foreign investors.
(3) The company must not manufacture products that are unwelcome in the relevant locality.
Each province in Vietnam has its own special policies and publishes the businesses and products it does not wish to see established there. In particular, products that have a significant negative environmental impact are, as a general rule, restricted or prohibited in every province. Before entering the market, it is therefore necessary to check whether the intended product falls within a locally restricted or prohibited category. As an exception, even where a product falls within a locally restricted or prohibited category, special approval may be granted if there are other points in the project's favor that would benefit the locality. However, the People's Committee's approval policy should be confirmed in advance.
03 - Points of Caution
Manufacturing plants must be located within an industrial park (a factory cannot be established or operated on land that is not zoned for manufacturing use, such as residential or commercial land). In addition, when an industrial park itself obtains its licenses, certain product categories are approved for manufacture within it. It is therefore necessary to confirm whether the company's products fall within the categories approved for that industrial park.
When obtaining an Investment Registration Certificate (IRC), the company must prepare a detailed proposal covering the products to be manufactured, the technology and machinery to be introduced, the scale of the business, and an assessment of the economic, social, and environmental impact of the business, and submit it to the authorities. The authorities review the application on this basis. Depending on the outcome of the review, the IRC may not be approved (this determination is, in part, left to the discretion of the authority).
04 - Overview of Procedures
To acquire land use rights and construct a factory on the land, the following general flow and procedures must be carried out.