Conditional Investments that need a sublicense in Vietnam

Before starting a business, Investors not only do research on the market, input and output for their products/services, human recources…but also learn about the provinsions of law that regulate their business lines. In particular, the conditional investments are so important that the investors must focus on them. These business lines need to meet other specific conditions for security, national defense, social order, social morality and public health. Therefore, the procedures for implementing these business lines are more severe than those of ordinary business lines, but are not prohibited by law. The following article refers to regulations on just the list of conditional business lines that need a sublincense in the Investment Law 2014, Enterprise Law 2014 and other relevant laws.

Lists of Conditional Investments that require a sublicense:

Notes:

Since July 2016, the issuance of new decrees has eliminated more than 3,000 industries requiring sublicenses, typically in the field of study abroad consulting, contributing to create more favorable conditions for the association of some businesses. However, in practice, businesses still face many difficulties with their sublicenses such as:

– The enterprise does not have accurate and complete understanding of the conditions for obtaining a sublicense and the procedure for applying for a sublicense. Because these regulations and procedures are regulated in different legal documents such as Laws, Decrees, Circulars or Official Dispatches, enterprises will encounter difficulties in obtaining information.

– There are procedures prescribed by law but no specific guidelines, leading to delays for enterprises when carrying out these procedures. In addition, it is inevitable that the change in procedure resulting from the promulgation of the new law. During the time when the new law comes into effect, enterprises will find it hard to apply for a sublicense for their business line and they have to wait until there is specific guideline from the authorities.

– Requirements of business conditions of some sectors are quite strict, leading to the business can not meet all requirements such as: human resources, labor qualifications, facilities, financial sources, capacity. For example, in the industry of sending Vietnamese people abroad to work (“labor export”), enterprises need legal capital of 05 billion Viet Nam Dong plus deposit 01 billion Viet Nam Dong and other regulations on personnel…

From the above mentioned difficulties, enterprises should contact law firms or lawyers for better advice on procedures as well as documents to be prepared, which help to save a lot more time.