Vietnam Eliminates Licensing Requirements for 38 Business Sectors in Major Regulatory Overhaul

New amendments shift the country toward a post-audit model, reduce administrative burdens, and open wider space for private-sector growth.

Vietnam has approved one of its most sweeping business-environment reforms in years, voting to eliminate licensing requirements for 38 conditional business sectors starting July 1, 2026. The revised Investment Law was passed on December 11 with nearly 90% support in the National Assembly, marking a significant step toward greater economic liberalization.

Under the new law, Vietnam will officially reduce the number of conditional business lines requiring permits from 234 to 196, with key removals concentrated in finance–accounting, agriculture and fisheries, construction, and transportation. Regulators emphasized that these sectors no longer require pre-approval and will instead be governed through post-audit mechanisms and compliance with technical standards.

The reform follows recommendations from the National Assembly’s Economic and Finance Committee, which called for a systematic review of business conditions to eliminate those deemed unnecessary, burdensome, or duplicative. Only industries connected to national defense, security, public morality, or public health will continue to require strict oversight. The committee also urged the Government to define clear criteria for what qualifies as an appropriate business condition and to publicly disclose the minimum compliance costs for each requirement.

During the explanatory session, the Government confirmed it will instruct ministries to redesign regulatory frameworks in affected sectors. The goal is to move decisively from “pre-check” to “post-check,” shifting from licensing toward registration or notification systems wherever appropriate, while applying national standards and technical specifications as the primary tools for supervision.

The amended law also introduces substantial changes for overseas investment projects. Those below a capital threshold to be specified by the Government — except projects in banking, insurance, securities, media, and real estate — will no longer require policy approval by the National Assembly or the Prime Minister. Instead, investors will only need to register foreign-exchange transactions with the State Bank of Vietnam before transferring money abroad. This simplifies procedures for the majority of outbound projects. As of June, Vietnam had 1,916 active overseas investment projects with total registered capital exceeding USD 23 billion, and more than two-thirds of them have capital below VND 20 billion.

In addition, the scope of projects requiring policy approval within Vietnam has been narrowed. Several project types have been removed from the approval list because they are already effectively regulated under specialized laws. These include industrial-cluster infrastructure projects, mineral extraction projects awarded through auctions, emergency public-works projects, and housing or urban-area developments where investors already possess legal land-use rights.

The revised Investment Law will take effect on March 1, 2026, with the new rules on conditional business sectors becoming effective July 1, 2026. Together, these changes are set to reduce administrative friction, boost investment activity, and strengthen Vietnam’s appeal as a competitive regional hub for business and innovation.

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Source: Vietnam Insider