VCI Legal – June 23, 2026

On May 15 the Vietnamese government issued resolution no. 66.17/2026/nq-cp, marking a significant deregulation effort. The directive reduces and amends conditional business investment lines, bringing the total number of “conditional” sectors down from 198 to 142. The resolution takes effect from July 1 and will remain in force until late February 2027. 

Here is a breakdown of what this sweeping regulatory shift means for the market. 

The benefits of deregulation 

For domestic enterprises 

The rollback of these conditional lines translates to immediate, tangible relief for local businesses: 

• A reduction in sub-licensing: firms are no longer required to secure preliminary eligibility licenses, significantly cutting through administrative red tape. 

• Lower compliance costs: businesses are freed from the financial burden of maintaining mandatory professional certificates and specific personnel solely to meet statutory criteria. It also removes minimum capital and physical facility prerequisites in the affected sectors. 

• Accelerated market entry: the pathway to incorporating new enterprises or expanding into new industries is now far more streamlined. 

• Enhanced competition: lowering the barriers to entry will inevitably invite fresh market participants, eroding the monopolies and entrenched advantages previously enjoyed by incumbent license holders. 

• Reduced legal risk: with fewer complex sub-licenses to navigate, the risk of incurring administrative penalties drops considerably. 

For foreign direct investment (FDI) 

International investors stand to gain a much smoother entry into the Vietnamese market: 

• Smoother IRC processing: investment authorities will have fewer regulatory grounds to demand exhaustive explanations regarding business conditions before issuing an investment registration certificate (IRC). 

• Expedited project timelines: the post-licensing phase is shortened, as fewer secondary permits are required after obtaining the initial IRC and enterprise registration certificate (ERC). 

• Reduced initial outlay: foreign investors are spared the immediate sunk costs of securing facilities, personnel, or capital strictly to satisfy prior business prerequisites. 

• Expanded market access: the reforms unlock sectors that were historically difficult to penetrate due to a labyrinth of prohibitive licensing conditions. 

A crucial caveat: the shift to post-compliance 

While the deregulation is a welcome reform, investors must heed article 4.2 of resolution 66.17, which stipulates: 

“ministers and heads of ministerial-level agencies shall promulgate technical standards, regulations, or professional criteria for the sectors reduced under this resolution (where necessary), thereby establishing procedures for post-compliance management before July 1 2026.” 

In legal terms, this indicates a strategic pivot in vietnam’s regulatory approach. The state is effectively phasing out preemptive business conditions and sub-licenses (a “pre-clearance” or ex-ante framework) in favour of technical and professional standards (a “post-compliance” or ex-post audit framework). 

Consequently, while the initial barrier to entry has been lowered, operational scrutiny remains. Businesses and investors must closely monitor and adhere to any forthcoming technical and professional standards to remain fully compliant once their operations are underway. 

If you require further assistance or tailored guidance on navigating these regulatory shifts, please contact the lawyers at vci legal for expert consultation. 

About VCI Legal: 

VCI Legal is an award-winning business law firm in Vietnam with a wide range of legal and corporate services, among other things, corporate, banking & finance, tax, labor & HR, real estate and dispute resolution with special focus on international investment disputes, We also offer our specialized type of service called “In-House Counsel Service” with the aim of assisting our clients in dealing with all types of internal and external issues arising from their day-to-day operations and business activities. With our offices in both Hanoi and Ho Chi Minh City, we have a tremendous depth of experience in providing well-reasoned and comprehensive legal advice to not only multinationals and Fortune 500 companies, but also small and medium enterprises. 

Our professional team comprises one of the leading law firms in Vietnam with service quality highly recommended and acknowledged by international legal service reviewers such as: The Legal 500, AsiaLaw Profiles, IFLR, KPMG’s Tax Directors’ Handbook, Acquisition International, ACQ Global, Global Law Experts, Finance Monthly, and Chambers & Partners. 

For many years, VCI Legal has been ranked among the top law firms in Vietnam for corporate, finance, insurance, taxation, employment, intellectual property and investment. With a “Can Do Attitude” combined with a “Know How” capacity, our firm is big enough to provide comprehensive legal support for any in-house legal matters, yet small enough to care about each of our clients. We undertake each engagement with the mindset of a long-term relationship, with the will to give whatever it takes to understand and fulfill your needs. 

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