On 15 May 2026, the Government of Vietnam issued Resolution No. 66.17/2026/NQ-CP (“Resolution 66.17”), introducing a major reform of Vietnam’s investment and business licensing framework. Effective from 1 July 2026 until 28 February 2027, the Resolution significantly reduces the number of business sectors subject to conditional investment and business requirements from 198 sectors to 142 sectors.
This means that 56 business sectors have been removed from the list of conditional business lines, marking a substantial step towards a more open, transparent and investor-friendly business environment.
The Most Important Change: Greater Legal Certainty for Investors
While the reduction in licensing procedures is welcome, the most significant benefit for investors is something even more valuable:
Legal Certainty.
Under Vietnam’s traditional conditional business regime, investors frequently had to obtain approvals, permits or licenses before commencing operations. In practice, this often resulted in lengthy review processes and varying interpretations by different authorities.
By removing these sectors from the list of conditional business lines, Vietnam is fundamentally changing the regulatory approach.
The new principle is simple:
- If a business activity remains conditional, authorities may review whether all statutory conditions have been satisfied before issuing a license.
- If a business activity has been removed from the conditional business list, investors no longer need to seek prior approval based on special business conditions.
- Authorities can no longer exercise broad administrative discretion over market entry for these sectors.
- Investors can proceed with their business activities provided they comply with applicable laws, technical standards and regulations.
In other words, the reform shifts Vietnam from a system of administrative permission to a system based on legal compliance and post-inspection.
For investors, this represents a very high level of legal certainty. Businesses can now plan investments, budgets, staffing and market entry strategies with greater confidence, knowing that commercial activities are governed primarily by transparent legal requirements rather than discretionary licensing decisions.
Vietnam Moves from “Pre-Approval” to “Post-Inspection”
Resolution 66.17 reflects the Government’s broader objective of modernizing Vietnam’s regulatory framework.
The traditional model relied heavily on:
- Pre-registration;
- Prior approvals;
- Licensing procedures; and
- Administrative review before business commencement.
The new approach increasingly emphasizes:
- Self-compliance by businesses;
- Market access without unnecessary approvals;
- Post-inspection and post-audit supervision; and
- Enforcement through technical regulations and standards.
This model is commonly found in more mature market economies and is generally viewed by international investors as more predictable, efficient and business-friendly.
Key Business Sectors Removed from the Conditional Business List
Among the 56 sectors removed from conditional business regulation are:
- Seaport operation and management services;
- Sea transportation services;
- Alcoholic beverage business;
- Insurance agency, insurance brokerage and reinsurance activities;
- Accounting services;
- Foreign exchange services provided by non-credit institutions;
- Land-use planning consultancy services;
- Electronic gaming activities (excluding prize-winning games for foreigners and certain online gaming activities);
- Production and distribution of audio and video recordings of music, dance and theatrical performances;
- Trading in certain chemicals and household/medical insecticides and bactericides;
- Construction and modification of fishing vessels;
- Trading in mobile communication signal jamming devices;
- Information content services provided through telecommunications networks and the internet;
- Trading in unmanned aircraft, aircraft engines, propellers and related equipment.
The removal of these sectors from the conditional business list is expected to significantly improve market accessibility and reduce administrative burdens for both domestic and foreign investors.
Reduced Costs and Faster Market Entry
Investors operating in these sectors can expect:
- Faster project implementation;
- Reduced licensing and compliance costs;
- Shorter timelines for market entry;
- Greater predictability in business planning;
- Reduced administrative interactions with authorities; and
- Improved investment certainty.
These benefits are particularly important for foreign investors, who have often identified licensing delays and administrative discretion as key challenges when entering emerging markets.
Compliance Remains Essential
The reform does not mean deregulation.
Businesses must continue to comply with all applicable:
- Laws and regulations;
- Technical standards;
- Industry-specific requirements;
- Safety regulations; and
- Environmental and operational obligations.
Authorities will increasingly rely on post-inspection and post-audit mechanisms to monitor compliance.
Relevant ministries and government agencies are expected to issue additional technical regulations and standards governing the newly liberalized sectors. Businesses that fail to comply with these requirements may still face substantial administrative penalties, suspension of operations or other enforcement measures.
A Strong Signal to International Investors
Resolution 66.17 sends a clear message that Vietnam is committed to improving its investment climate and reducing unnecessary administrative barriers.
More importantly, the reform enhances one of the factors most valued by international investors: legal certainty.
When regulatory requirements are clear and objective, and when authorities have limited discretion once those requirements are met, investors can make decisions with greater confidence and lower regulatory risk.
The reduction of conditional business sectors from 198 to 142 is therefore not merely an administrative simplification exercise. It represents a meaningful shift towards a more transparent, predictable and rules-based business environment—one that should further strengthen Vietnam’s attractiveness as a regional investment destination.
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For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under [email protected]. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.