Vietnam Investment Law 2026: Key Changes for Foreign Investors

Vietnam is set to introduce important changes to its investment and business regulatory framework in 2027.

On 24 August 2026, Vietnam promulgated Law No. 24/2026/QH16 amending and supplementing a number of provisions of the Law on Investment (“Investment Law 2026”). The Law will generally take effect from 1 March 2027.

One of the most significant changes is the restructuring of Vietnam’s list of conditional business sectors. The new Law cuts 62 conditional business sectors and revises 14 others, reducing the new list to 137 conditional business sectors.

For foreign investors, these changes may be relevant when planning a new investment, reviewing an existing business structure or assessing market-entry requirements in Vietnam.

What Is Vietnam Investment Law 2026?

Law No. 24/2026/QH16 replaces the existing list of conditional business sectors under Appendix IV of the 2025 Law on Investment with a new list.

The reform follows a broader policy direction of simplifying investment and business regulations and moving, where appropriate, from pre-inspection toward post-inspection. The objective is to remove unnecessary conditions while maintaining effective regulatory oversight in sectors involving significant risks, including national security, public order, public safety and public health.

The Government estimates that the reform could:

• Cut approximately 786 business conditions;

• Reduce approximately 232 administrative procedures;

• Reduce compliance costs by approximately VND 175 billion per year; and

• Reduce compliance time by approximately 7,500 hours per year.

For businesses and investors, the changes are therefore broader than simply reducing the number of conditional business sectors.

Key Changes Under Vietnam Investment Law 2026

The main changes can be summarized as follows:

Key change	Details
Conditional business sectors	62 sectors cut and 14 sectors revised
New list	137 conditional business sectors from 1 March 2027
New conditional sector	Visa support services provided by authorized business establishments
Business conditions	Approximately 786 conditions expected to be reduced
Administrative procedures	Approximately 232 procedures expected to be reduced
Compliance costs	Expected reduction of approximately VND 175 billion per year
Compliance time	Expected reduction of approximately 7,500 hours per year
Regulatory approach	Greater shift from pre-inspection toward post-inspection

Vietnam Cuts 62 Conditional Business Sectors

The 62-sector reduction is one of the headline changes under the new Investment Law.

However, the figure should not be read as meaning that 62 business activities have simply been deleted one by one.

The reduction reflects a broader restructuring of the conditional business sector framework, including the removal, consolidation and adjustment of existing sectors.

For example, several education activities that previously appeared as separate sectors are consolidated into a broader education-related sector. Activities involving unmanned aircraft are also reorganized into broader categories.

This distinction matters because the legal effect of removing a sector entirely is different from consolidating several existing sectors or narrowing the scope of a conditional activity.

Business Sectors Removed from the Conditional List

The following sectors are identified in the detailed comparison as being removed from the conditional business list:

No.	Business sector
1	Paintball gun business
2	Business of signaling equipment for priority vehicles
3	Auction practice
4	Bailiff practice
5	Asset management and liquidation practice in bankruptcy proceedings
6	Accounting services
7	Duty-free goods business
8	Gas business
9	Alcohol business
10	Mineral trading
11	Trading activities and activities directly related to trading activities of foreign service suppliers in Vietnam
12	Oil and gas activities
13	Vocational education quality assessment
14	Occupational safety and hygiene training services
15	Training services for road traffic safety assessment personnel
16	Inland waterway transportation
17	Maritime transportation
18	Import and demolition of used seagoing ships
19	Seaport operation
20	Pipeline transportation
21	Clean water supply
22	Construction inspection practice
23	Business of white asbestos products of the Serpentine group
24	Publishing services
25	Information content services on mobile telecommunications networks and the Internet
26	Domain name registration and maintenance services
27	Operation of specialized schools
28	Foreign-linked training activities
29	Educational quality accreditation
30	Testing services for aquatic and animal feed and environmental treatment products
31	Business of biological preparations, microorganisms, chemicals and environmental treatment products in animal husbandry
32	Construction and conversion of fishing vessels
33	Training and professional development of fishing vessel crew
34	Plant protection services
35	Veterinary technical services
36	Testing services for plant and animal varieties
37	Testing services for aquatic breeds
38	Testing and assessment services for biological preparations, microorganisms, chemicals and environmental treatment products in aquaculture and animal husbandry
39	Business of insecticides and disinfectants for household and medical use
40	Intellectual property assessment services
41	Business of audio and video recordings of music and stage performances
42	Museum services
43	Electronic game business, except specified prize-winning electronic games
44	Land investigation and assessment consultancy services
45	Land-use planning and planning consultancy services
46	Land price determination services
47	Decision-support services for water resource allocation and reservoir/inter-reservoir operation
48	Foreign exchange business and supply of foreign exchange services by non-credit institutions
49	Training and certification of radio operators

These are the sectors identified as being removed from the conditional list. The broader 62-sector reduction also reflects restructuring and other changes to the previous framework.

Consolidation and Restructuring of Existing Business Sectors

The reform also changes how certain activities are classified.

Education

Several education-related activities that were previously listed separately are consolidated into one broader sector covering:

Preschool education, general education, higher education and continuing education activities.

This means the new framework is not simply a list of deleted sectors. It also reduces fragmentation within the conditional business sector framework.

Unmanned Aircraft

Activities relating to unmanned aircraft are also reorganized.

Previously separate activities such as import, temporary import for re-export, temporary export for re-import, research, manufacturing, testing, repair and maintenance are brought under a broader business-sector description.

This approach reduces the number of separate entries while retaining regulatory controls over the relevant activities.

Customs-Related Activities

The wording of certain customs-related business activities is also narrowed.

For example, the new list refers to:

Business of locations for customs clearance, collection, inspection and customs supervision

with the wording adjusted under the new framework.

These examples illustrate why the 62-sector reduction should be understood as a structural reform of the list, rather than simply the deletion of 62 individual business lines.

A New Conditional Business Sector Is Added

The reform is not entirely about removing business conditions.

Law No. 24/2026/QH16 adds “visa support services provided by authorized business establishments” as a new conditional business sector, listed as No. 137 in the new list.

According to the Government, the additional condition is intended to strengthen oversight of activities involving immigration, national security and personal data risks.

The overall direction is therefore to remove conditions where they are no longer necessary while maintaining or strengthening controls in higher-risk areas.

What Does This Mean for Foreign Investors?

The changes may create more flexibility for businesses in affected sectors. However, foreign investors should distinguish between conditional business sectors and foreign market access conditions.

These are separate regulatory questions.

Conditional Business Sectors

A conditional business sector is an activity for which Vietnamese law requires the investor or business to satisfy specific conditions.

If the activity is removed from the conditional list, those conditions no longer apply solely because the activity was previously classified as conditional.

Foreign Market Access Conditions

Foreign investors must separately assess whether their proposed business activities are subject to foreign market access conditions.

Depending on the sector, these conditions may concern:

• Foreign ownership ratios;

• Forms of investment;

• Scope of investment activities;

• Vietnamese partners; or

• Other requirements under Vietnamese law or applicable international commitments.

Therefore, the removal of a business sector from the conditional list does not automatically mean that foreign investors can enter that sector without restrictions.

Sector-Specific Requirements

Other laws may continue to regulate the same activity.

For example, an activity may no longer be a conditional business sector under the Investment Law while still being subject to sector-specific licences, professional requirements, technical standards or other regulatory obligations.

For this reason, foreign investors should assess the Investment Law together with the regulations applicable to their particular business activity.

What About the Investment Registration Certificate?

The reduction of conditional business sectors should not be interpreted as an automatic change to every Investment Registration Certificate (IRC) requirement.

Whether an IRC is required, and what requirements apply to an investment project, depends on the specific project, investor and proposed activities.

For a foreign investor, the regulatory assessment may therefore involve:

Business activities → Foreign market access → Investment structure → IRC requirements → ERC requirements → Sector-specific licences → Ongoing compliance

The upcoming changes may affect one or more of these stages depending on the nature of the investment.

Transitional Rules for Existing Businesses

The Law also provides transitional rules for sectors that are no longer classified as conditional.

From the effective date, organizations and individuals may conduct investment and business activities in those sectors without having to satisfy the former business conditions.

Where an existing licence, certificate, professional certificate, confirmation or other relevant approval has already been issued, the holder may, if desired, continue using it until its expiry without having to apply for a new issuance, adjustment or extension solely because the relevant sector is no longer conditional.

For valid applications that were received before the new Law takes effect but have not yet been processed, the competent authority will handle them in accordance with the transitional provisions of the Law.

This is particularly relevant for businesses that are already operating or are currently preparing licensing applications.

What Should Foreign Investors Do Before 1 March 2027?

For investors planning to enter or expand in Vietnam in 2027, the period before the new Law takes effect provides an opportunity to review the proposed investment structure and business activities.

1. Review the proposed business activities

Identify the actual activities that the Vietnam entity will conduct.

The regulatory assessment should be based on the substance of the business rather than only a general description of the company’s operations.

2. Check the new conditional business list

Compare the proposed activities against the new framework applicable from 1 March 2027.

Where an activity has been removed, consolidated or restructured, investors should assess the practical effect on their planned operations.

3. Check foreign market access conditions separately

The removal of a business condition does not necessarily remove restrictions applicable specifically to foreign investors.

Foreign ownership, investment forms and other market access conditions should therefore be reviewed independently.

4. Review the investment structure

For new FDI projects, investors may wish to review:

• Proposed ownership structure;

• Investment form;

• Business lines;

• Investment capital;

• Project objectives; and

• Licensing strategy.

5. Consider the timing of market entry

For projects currently under preparation, the 1 March 2027 effective date may be relevant when deciding when to submit applications or commence certain activities.

The appropriate approach will depend on the specific project and applicable transitional provisions.

Why This Matters for Investors Planning for 2027

The significance of the Investment Law 2026 goes beyond the headline number of 62 sectors.

For foreign investors, the more practical question is:

How will the amended framework affect the specific activities and structure of my Vietnam investment?

An investor planning a new project may need to determine whether the changes affect its proposed business lines, market access conditions or licensing strategy.

An existing foreign-invested company may also benefit from reviewing whether any of its current activities are affected by the revised framework.

This makes the Investment Law 2026 particularly relevant for investors currently preparing Vietnam market-entry and expansion plans for 2027 and beyond.

LTS Perspective

At LTS, we see the practical significance of the Investment Law 2026 not simply in the number of sectors removed or revised, but in how these changes may affect an investor’s overall market-entry strategy.

For foreign investors preparing to enter or expand in Vietnam, reviewing proposed business activities, foreign market access conditions and licensing requirements before March 2027 can help identify potential regulatory changes at an early stage.

For projects being planned for 2027, this early review may also support better-informed decisions on investment structure, licensing strategy and implementation timeline.

Conclusion

Law No. 24/2026/QH16 represents a significant step in Vietnam’s continuing effort to simplify its investment and business regulatory framework.

From 1 March 2027, the amendments will reduce and restructure the list of conditional business sectors, while revising other regulated activities and introducing new requirements in selected areas.

For foreign investors, the key takeaway is that the reduction of business conditions does not mean that all market-entry requirements disappear. Foreign market access, investment registration and sector-specific regulations should still be assessed alongside the new framework.

For investors planning a new project or business expansion in Vietnam in 2027, understanding these changes early can provide a clearer basis for planning the appropriate market-entry structure and compliance strategy.

Disclaimer

This article is provided for general informational and reference purposes only and does not constitute legal advice. The application of relevant laws and procedures may vary depending on the specific documents, circumstances, and countries or territories involved.

For advice tailored to your specific circumstances, please contact LTS LAW FIRM for further consultation and legal assistance.

LTS LAW FIRM

Floor 6, 520 Cach Mang Thang Tam
Nhieu Loc Ward, Ho Chi Minh City, Vietnam
Tel: (+84) 965 000 524
Email: contact@lts.com.vn

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