Official websites use .gov Secure .gov websites use HTTPS EXECUTIVE SUMMARY Foreign direct investment (FDI) continues to be of vital importance to Vietnam as an economic growth driver. According to government statistics, Vietnam’s FDI stock stood at over $322 billion at the end of 2024, roughly equivalent to two-thirds of Vietnam’s GDP. The government has policies in place that are broadly conducive to FDI, particularly for enterprises engaged in export-oriented manufacturing. Factors that attract foreign investors include: political stability, strong economic growth, a young and increasingly urbanized and educated population, competitive labor costs, and a growing number of trade agreements. Vietnam’s recent moves forward on free trade agreements (FTA) make it easier to attract FDI by providing better market access for Vietnamese exports and encouraging investor-friendly reforms: The EU-Vietnam Free Trade Agreement entered into force August 1, 2020. The UK-Vietnam Free Trade Agreement entered into force May 1, 2021. The Regional Comprehensive Economic Partnership entered into force January 1, 2022, for 10 countries, including Vietnam. These agreements may benefit U.S. companies operating in Vietnam by reducing barriers to inputs from and exports to participating countries but also make it more challenging for U.S. exports to Vietnam to compete against contenders benefiting from preferential treatment. In February 2021, the 13th Party Congress of the Communist Party of Vietnam (CPV) approved a 10-year economic strategy that calls for shifting foreign investment to high-tech industries and ensuring such investment meets higher standards relating to environmental protection. Since then, Vietnam’s legal and regulatory environment has evolved considerably with the passage of new or amended laws related to issues such as: telecommunications, and environmental protection. Most recently, CPV and government leadership have placed particularly strong emphasis on strengthening the role of the private sector, cutting red tape for business, reforming institutions and the administrative state, and advancing economic growth led by technology and innovation. The pace of legal and regulatory reform has picked up as a result, and Vietnam has established increasingly high targets for economic growth as it seeks to become a high-income country by 2045. Despite having a relatively high level of FDI net inflows as a percentage of GDP compared to most regional peers, Vietnam faces some significant challenges with its investment climate. These include: widespread corruption, the entrenched position of state-owned enterprises (SOE) in certain sectors, regulatory uncertainty in key sectors, a weak and opaque legal regime, poor enforcement of intellectual property rights, a shortage of skilled labor, restrictive labor practices, and slow government decision-making processes. With high reliance on inputs from China, Vietnamese manufacturing is vulnerable to forced labor risks in supply chains, though the government and industry are actively working to address these concerns. Policies toward Foreign Direct Investment Attracting FDI continues to be a policy priority for the government, and FDI plays a key role in supporting Vietnam’s ambitious economic growth and development goals. Both the central government and lower-level governments seek to attract FDI by organizing trips abroad, including to the United States, and hosting annual investment conferences for foreign investors. The government has recently placed particular emphasis on attracting FDI in sectors including: semiconductors, high-tech manufacturing. So-called FDI companies exported nearly $291 billion worth of goods in 2024, equal to roughly 71 percent of all goods exports, according to government statistics. In 2024, Vietnam amended several investment-related laws to improve the business environment and attract foreign investment by removing bureaucratic obstacles and legal uncertainty. Vietnam also established a state-backed investment support fund to attract investment in strategic sectors. In 2022, the government issued a strategy on foreign investment cooperation through 2030. The strategy articulates specific objectives, including: boosting the share of foreign investment from key regions, increasing the presence of Fortune 500 multinational corporations in Vietnam, and improving Vietnam’s position in global and regional business climate indices. While Vietnam’s Law on Investment states that the government must treat foreign and domestic investors equally, foreign investors have complained about facing extra hurdles to get ordinary government approvals. The government continues to impose foreign ownership limits (FOL) in numerous industries. In January 2020, the government removed FOLs on companies in the electronic payments sector and reformed electronic payments procedures for foreign firms. Some U.S. investors report that these changes have provided more regulatory certainty, which has in turn instilled greater confidence as they consider long-term investment opportunities in Vietnam. U.S. investors continue to cite concerns about confusing tax regulations and retroactive changes to laws and regulations, including with respect to: tax policies, and preferential treatment of SOEs. Additionally, U.S. enterprises report facing obstacles in extending and renewing investment certificates, citing prolonged periods of unresponsiveness from government entities. Both foreign investors and government agencies have expressed concern regarding the speed and responsiveness of government decision making and approvals as a result of a sweeping, multi-year anti-corruption campaign. As part of a government restructuring in 2025, the Ministry of Finance (MOF) absorbed the Ministry of Planning and Investment (MPI). Following this consolidation, MOF has taken on MPI’s role as the national authority responsible for promoting and facilitating foreign investment. Vietnam’s senior leaders often meet foreign government and private sector representatives to emphasize Vietnam’s attractiveness as an FDI destination. The semiannual Vietnam Business Forum includes meetings between foreign investors and Vietnamese government officials. The U.S.-ASEAN Business Council, American Chamber of Commerce (AmCham), and other U.S. associations also host missions for their U.S. company members, which allow for direct engagement with senior government officials. Sector-specific roundtables and conferences also occur on a regular basis. Foreign investors in Vietnam have reported that these meetings and dialogues have helped address obstacles. Limits on Foreign Control and Right to Private Ownership and Establishment Both foreign and domestic private entities have the right to establish and own business enterprises in Vietnam and engage in most forms of commercial activity in non-regulated sectors. Vietnam has some statutory restrictions on foreign investment, including FOLs or requirements for joint partnerships and projects in: network infrastructure services, non-infrastructure telecommunications services, transportation, In 2025, the government increased FOLs to 49 percent in the banking sector under specific conditions. Regulations introduced in March 2021 identified 25 business lines in which foreigners are prohibited to invest and 59 other business lines with restrictions in place. By law, the prime minister can waive FOLs on a case-by-case basis. In practice, however, when the government has removed or eased FOLs, it has typically done so for a whole industry or sector rather than for a specific investment. The level of foreign ownership or control allowed in a particular sector generally depends on the strategic importance of the sector to the Vietnamese economy and the government’s policy objectives. The government of Vietnam periodically reviews and adjusts FOLs based on its economic development goals and investment needs. MOF plays a key role with respect to reviewing FDI. All FDI projects require approval by the People’s Committee in the province in which projects are to be located. By law, large-scale FDI projects must also obtain the approval of the National Assembly before investment can proceed. MOF’s approval process includes an assessment of: the investor’s legal status and financial strength, the project’s compatibility with the government’s long- and short-term goals for economic development and government revenue, the investor’s technological expertise, environmental protection concerns, and plans for land use and land clearance compensation, if applicable. The government can, and sometimes does, stop foreign investment if it deems the investment harmful to Vietnam’s national security. In 2025, the government adopted criteria, with 42 indicators in all, for evaluating FDI projects and their effectiveness. Certain types of FDI projects require the prime minister’s approval, including those for: seaports deemed strategic by the government; oil and gas exploration, production, and refining; telecommunications and network infrastructure; forestry; publishing; and projects that need approval from more than one province. Other Investment Policy Reviews In the past five years, Vietnam has undergone a number of third-party investment policy reviews, including by the: World Bank , and Business Facilitation The government of Vietnam has several initiatives in progress to implement administrative reforms, such as building e-government platforms and single-window services. In April 2023, USAID and the Vietnam Chamber of Commerce and Industry released the 2023 Provincial Competitiveness Index (PCI) Report. The PCI Report provides an independent, unbiased view on the provincial business environment by surveying thousands of domestic private firms on a variety of business issues. Vietnam has not signed the WTO Investment Facilitation for Development Agreement. Vietnam maintains a nationwide business registration website . Information on Vietnam’s investment regulations can be found online via the government’s portal for foreign investment procedures . The website provides information to investors regarding administrative procedures applicable to investment and income-generating operations. Outward Investment The government does not have a clear mechanism to promote or incentivize outward investment. Government entities such as the Vietnam Trade Promotion Agency assist domestic firms in global market expansion efforts, including by organizing trade missions and providing advisory services. Domestic investors wishing to invest abroad face a number of procedural regulations, notably foreign exchange controls requiring government approval and sector-specific scrutiny in national security-sensitive areas. Laos, Indonesia, and India were the most popular destinations for outward Vietnamese FDI in 2024. Investment and Taxation Treaties According to UNCTAD, Vietnam has 51 bilateral investment treaties in force and an additional 26 agreements in force that include investment provisions. Vietnam is also a member of 17 free trade agreements (FTAs), including the EU-Vietnam Free Trade Agreement (EVFTA) and the related EU-Vietnam Investment Protection Agreement. Vietnam is a member of regional FTAs with investment chapters, including the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The United States and Vietnam do not have a bilateral income taxation treaty. Transparency of the Regulatory System U.S. companies continue to report that they face frequent and significant challenges with inconsistent regulatory interpretation, irregular enforcement, and an unclear legal framework. U.S. companies have consistently voiced concerns that Vietnam lacks a fair legal system for investment, which affects U.S. companies’ ability to do business in Vietnam. Accounting systems are inconsistent with international norms, and this increases transaction costs for investors. The government had previously said it intended to have most companies transition to International Financial Reporting Standards by 2020. Unable to meet this target, MOF in March 2020 extended the deadline to 2025. In Vietnam, the National Assembly passes laws, which serve as the highest form of legal direction, but laws often lack specifics. Follow-on regulations contain more specific guidelines for the implementation of laws. Ministries provide draft laws to the National Assembly. The prime minister issues decrees, which provide guidance on the implementation of laws. Individual ministries issue circulars, which provide guidance on how a ministry will administer aspects of a law or decree within its area of responsibility. After ministries have cleared a particular law for transmittal to the National Assembly, the government posts the law for a comment period, per the Law on the Promulgation of Legal Normative Documents. In 2025, an amended version of the law entered into force that shortened this comment period from 60 to 20 days. However, in practice, and even before the amended law went into effect, public comment periods have been truncated. Foreign governments, NGOs, and private-sector companies can, and do, provide comments, after which the responsible ministry may redraft the law. Upon completion of the revisions, the ministry submits the legislation to the Office of the Government for approval. It requires the prime minister’s signature and then moves to the National Assembly for committee review. During this process, the National Assembly can send the legislation back to the originating ministry for further changes. The Politburo reserves the right to review special or controversial laws. The law requires that legal documents be published in the Official Gazette before implementation. In practice, drafting ministries often lack the resources needed to conduct adequate, data-driven assessments. Ministries are supposed to conduct policy impact assessments that holistically consider all factors before drafting a law, but the quality of these assessments varies. The Ministry of Justice (MOJ) oversees administrative procedures for government ministries and agencies. MOJ’s Regulatory Management Department oversees and reviews legal documents after they are issued to ensure compliance with the legal system. Business associations and various chambers of commerce regularly comment on draft laws and regulations. However, when issuing more detailed implementing guidelines, government entities sometimes issue circulars with little advance warning and without public notification, resulting in little opportunity for comment by affected parties. In several cases, authorities have allowed comments for first drafts only and did not provide subsequent draft versions to the public. Vietnam maintains a centralized location where key regulatory actions are published . While general information is publicly available, Vietnam’s public finances and debt obligations, including explicit and contingent liabilities, are not sufficiently transparent. Official public debt figures exclude the debt of certain large SOEs. Vietnam could improve its fiscal transparency by, among other things, making its executive budget proposal, including budgetary and debt expenses, widely and easily accessible to the general public before the National Assembly enacts the budget and ensuring greater transparency of off-budget accounts. International Regulatory Considerations Vietnam is a member of ASEAN, a 10-member regional organization that works to advance economic integration through cooperation in economic, social, cultural, technical, scientific, and administrative fields. Within ASEAN, the ASEAN Economic Community has the goal of establishing a single market across ASEAN nations (similar to the EU’s single market), but member states have not made significant progress. Vietnam is also a member of the Asia-Pacific Economic Cooperation (APEC), an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. APEC aims to facilitate business among member states through trade facilitation programming, senior-level leaders’ meetings, and regular dialogue. Vietnam’s regulatory system increasingly incorporates international norms and standards, which comes as a result of its participation in regional agreements that require alignment with such norms and standards. As a WTO member, Vietnam notifies draft technical regulations to the WTO Committee on Technical Barriers to Trade. Legal System and Judicial Independence Vietnam’s legal system mixes indigenous, French, and Soviet-inspired civil legal traditions. Vietnam generally follows an operational understanding of the rule of law that is consistent with its top-down, one-party political structure and traditionally inquisitorial judicial system, though in recent years the country has begun gradually introducing elements of an adversarial system. The hierarchy of Vietnam’s courts is, in descending order of authority: the Supreme People’s Court; High People’s Courts; Provincial People’s Courts; and District People’s Courts. The People’s Courts operate in five divisions: administrative, The Supreme People’s Procuracy is responsible for prosecuting criminal activities as well as supervising judicial activities. Military tribunals at various levels also exist. Vietnam lacks an independent judiciary, and there is no separation of powers in the legal system. For example, in the past Vietnam’s chief justice has also been a senior member of the CPV. According to Transparency International, there is a significant risk of corruption in judicial rulings. According to one public report, nearly one-fifth of surveyed Vietnamese households that have been to court declared that they had paid bribes at least once. Many businesses try to avoid Vietnamese courts as much as possible. The judicial system continues to face additional problems. For example, many judges and arbitrators lack adequate legal training and are appointed through personal or political contacts with party leaders or based on their political views. Regulations or enforcement actions are appealable, and appeals are adjudicated in the national court system. Individuals and companies can file complaints against enforcement actions under the Law on Complaints. The Commercial Law regulates commercial contracts between businesses. Specific regulations prescribe distinctive forms of contracts, depending on the nature of particular deals. If a contract does not contain a dispute resolution clause, courts will have jurisdiction over a dispute. Vietnamese law allows dispute resolution clauses in commercial contracts explicitly through the Law on Commercial Arbitration. The law follows the United Nations Commission on International Trade Law model law as an international standard for procedural rules. Vietnamese courts will only consider recognition of civil judgments issued by courts in countries that have entered into agreements on recognition of judgments with Vietnam or on a reciprocal basis. However, except for a treaty with France, these treaties only cover non-commercial judgments. Vietnam’s SOEs are governed by specific regulations designed to ensure their operations adhere to commercial principles. Nevertheless, certain provisions, carve-outs, and exceptions exist that permit special treatment for select, vital SOEs. Laws and Regulations on Foreign Direct Investment Vietnam’s legal framework for foreign investment is guided primarily by the Law on Investment and Law on Enterprises. These laws provide a unified framework for both domestic and foreign investors, emphasizing equal treatment and protection of investor rights. They also set out license approval requirements for investment projects. In 2024, Vietnam amended the Law on Investment alongside a number of other investment-related laws to, among other things, introduce special investment procedures for projects in industrial zones, high-tech zones, and sectors like semiconductor manufacturing and provide exemptions from certain approval processes. It also expanded a list of sectors restricted to foreign investment. Additionally, amendments to the Law on Land redefined “foreign-invested entities” to align with the Investment Law, clarifying land use rights for companies with foreign ownership. Competition and Antitrust Laws The Vietnam Competition and Consumer Authority (VCCA) within the Ministry of Industry and Trade (MOIT) reviews transactions for competition-related concerns. VCCA has clarified that the Vietnamese merger control regime seeks to regulate only transactions that may have an anticompetitive impact on Vietnamese markets, especially those that enable enterprises to hold a dominant or monopoly position and heighten the risk of an abuse of dominance. Expropriation and Compensation Under the law, the government of Vietnam can only expropriate investor property in cases of emergency, disaster, defense, or national interest, and the government is required to compensate investors if it expropriates property. Under the U.S.-Vietnam Bilateral Trade Agreement, Vietnam must apply international standards of treatment in any case of expropriation or nationalization of U.S. investor assets, which includes acting in a non-discriminatory manner, with due process of law, and with prompt, adequate, and effective compensation. U.S. and other foreign companies have disputed government tax audits. U.S. businesses generally attribute these cases to unclear, conflicting, and amended language in investment and tax laws, and they complain that these issues make it difficult for them to predict their eventual tax liability. In some cases, the government has complained publicly that some foreign investors, including some from the United States, engage in transfer pricing abuse. Dispute Settlement ICSID Convention and New York Convention Vietnam is not a party to the International Centre for Settlement of Investment Disputes (ICSID) Convention. The former MPI had submitted a proposal to the government to join the ICSID Convention, but the government has not moved forward on this initiative. Vietnam is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Investor-State Dispute Settlement Some of the investment treaties and FTAs to which Vietnam is party include provisions for investor-state dispute settlement (ISDS). Technically, foreign and domestic arbitral awards are legally enforceable in Vietnam; however, foreign investors in Vietnam generally prefer international arbitration for predictability. Vietnamese courts may reject foreign arbitral awards if an award is deemed contrary to basic principles of domestic law. According to UNCTAD, since 2013 there have been several ISDS cases brought against Vietnam under the U.S.-Vietnam Bilateral Trade Agreement. Vietnam is a respondent in several ongoing ISDS cases involving investors from the United States, China, Germany, the Republic of Korea, Portugal, and the United Kingdom. International Commercial Arbitration and Foreign Courts Vietnam’s courts are often ineffective in settling commercial disputes due to Vietnam’s underdeveloped legal system. Negotiation between concerned parties or arbitration are the most common means of dispute resolution. The Law on Commercial Arbitration does not allow a foreign investor to refer an investment dispute to a court in a foreign jurisdiction. Vietnamese judges cannot apply foreign laws to a case before them, and foreign lawyers cannot represent plaintiffs in a court of law. In general, the court system in Vietnam works slowly. International arbitration awards, when enforced, may take years from original judgment to payment. Many foreign companies, due to concerns related to time, costs, and bribery-related risks, have reported that they have turned to international arbitration or have asked influential individuals to weigh in on their behalf. Bankruptcy/Insolvency Regulations Under the Bankruptcy Law, bankruptcy is not criminalized unless it relates to another crime. The law defines insolvency as a condition in which an enterprise is more than three months overdue in meeting its payment obligations. The law also contains provisions allowing creditors to commence bankruptcy proceedings against an enterprise and procedures for credit institutions to file for bankruptcy. The Credit Information Center of the State Bank of Vietnam provides credit information services for foreign investors concerned about bankruptcy risks with respect to Vietnamese partners. Industrial Policies Investment Incentives Foreign investors are exempt from import duties on goods imported for their own use that cannot be procured locally, including: components and spare parts for machinery and equipment, inputs for manufacturing, and construction materials. Remote and mountainous provinces and special industrial zones are allowed to grant additional tax breaks and other incentives to prospective investors. Investment incentives, including exemptions of some import tariffs and favorable land rental rates, are available in the following sectors: advanced technology, research and development, waste treatment and management, and primary or vocational education. Incentives are not always available to domestic and foreign investors alike. With Vietnam’s adoption of global minimum tax rules in 2023, tax-based incentives are likely to become less relevant. The government rarely issues guarantees for financing FDI projects. When it does so, it is usually because the project is connected to a national security priority. Joint financing with the government occurs when a foreign entity partners with an SOE. The government’s reluctance to guarantee projects reflects its desire to stay below a 60 percent public debt-to-GDP cap and avoid incurring liabilities from projects that would not be economically viable without the guarantee. This has delayed approval of many large-scale FDI projects. Foreign Trade Zones/Free Ports/Trade Facilitation Vietnam has prioritized efforts to establish and develop different kinds of foreign trade zones (FTZ) over the last decade. Industrial zones (IZ) are dedicated areas for industrial activities; export processing zones (EPZ) are a specific kind of IZ, focused on export-oriented production and activities. Vietnam currently has more than 350 IZs and EPZs. Many foreign investors report that it is easier to implement projects in IZs than in other types of zoned land because they do not have to be involved in site clearance and infrastructure construction. Enterprises in FTZs pay no duties when importing raw materials if they export the finished products. Customs warehouse companies in FTZs can provide transportation services and act as distributors for deposited goods. Companies operating in these economic zones have been able to take advantage of certain tax incentives not available elsewhere in Vietnam. Additional services relating to customs declaration, appraisal, insurance, reprocessing, or packaging require the approval of provincial customs offices. In practice, the time involved for clearance and delivery of goods by provincial customs officials can be lengthy and unpredictable. Performance and Data Localization Requirements The Law on Investment and related regulations identify sectors “with market entry restrictions” and “with conditions” for foreign investors. Market entry requirements and limitations for foreign investment in “conditional” sectors are specified in the Law on Investment and other specialized laws. All investors, foreign or domestic, must obtain formal approval, in the form of business licenses or other certifications, to satisfy “necessary conditions for reasons of national defense, security or order, social safety, social morality, and health of the community.” In addition to market access conditions, the Law on Investment places two additional conditions on foreign investors investing in or acquiring stakes in a Vietnamese company: the investment must not compromise the national defense and security of Vietnam, and the investment must comply with the conditions relating to the use of sea-lands (i.e., land that is directly associated or extending into the ocean), borderlands, and coastal lands in accordance with applicable laws. The term “national defense and security” is not defined under the Law on Investment, requiring investment projects to go through Ministry of National Defense and Ministry of Public Security (MPS) for appraisal. This ambiguity gives regulatory agencies considerable flexibility to restrict investment activities in sensitive sectors or locations. For existing investment projects, the extension of allowed investment terms will not be granted to any project using outdated technology, having any potential negative impact on the environment, or involving any exploitation of natural resources. The Law on Cybersecurity came into effect in 2019. Implementing regulations that went into effect in August 2022 require all domestic companies, including foreign-invested subsidiaries in Vietnam, to store a copy of Vietnamese user data on servers located within Vietnam and establish a physical office in Vietnam under the jurisdiction of Vietnamese law enforcement. If foreign firms, which are nominally exempt from the requirement, are found to be in violation of Vietnamese laws, MPS could force the firms to localize their data as well. Vietnam enacted the Personal Data Protection Decree (PDPD) in April 2023. The PDPD applies to domestic and foreign entities directly engaging in data processing in Vietnam, regardless of industry or business. The PDPD defines “basic personal data” but only vaguely defines “sensitive personal data” as personal data that, when compromised, affects an individual’s rights. The PDPD requires organizations to implement data protection programs, including: appointing a data protection officer or department, conducting data protection impact assessments for cross-border data transfers, and mandatory reporting of data privacy violations. The PDPD does not impede free cross-border data flow. Industry experts have raised concerns about the decree’s broad scope, extra compliance burdens, and required annual review mechanism. While the PDPD is effective from July 2023, it stipulates a two-year grace period for small- and medium-sized businesses to implement data protection programs. Vietnam introduced a draft Personal Data Protection Law (PDPL) in September 2024 to enhance: focusing on consent, data subject rights, breach notifications, creating a data protection authority. Industry commenters generally expect the law to include a broad definition of: “personal data,” strict cross-border data transfer rules, and severe penalties for non-compliance.

The Law on Data, passed in November 2024, prohibits data handling that harms: national interests, public order, or individual rights. The law imposes strict conditions on transferring “sensitive data” abroad. Draft guidelines released in January 2025 to implement the Law on Data require that “core” and “important” data transfers comport with national security and public interest safeguards, stringent data protection measures, and breach reporting guidelines. MPS has become the lead ministry for all data issues and oversees the National Data Center. The business community has voiced concern about a lack of clarity about terms used in the law and draft guidelines, in addition to potential business impacts. An updated Law on Telecommunications was enacted in November 2023, with implementing regulations adopted in July 2024. The law and associated regulations permit 100 percent foreign ownership and licensing exemptions for: over-the-top services, data centers, and cloud services. However, because government users must store data domestically, offshore providers are required to set up local infrastructure for public sector contracts. Protection of Property Rights The state collectively owns and manages all land in Vietnam. Neither foreigners nor Vietnamese nationals can own land. However, the government grants land use and building rights, often to individuals. According to government statistics, as of December 2021 the government has issued land use rights certificates for 96 percent of land in Vietnam. If land is not used according to the land use rights certificate or if it is unoccupied, the rights revert to the government. If investors do not use land leased within 12 consecutive months or delay land use by 24 months from the original investment schedule, the government is entitled to reclaim the land. Investors can seek an extension but not for more than 24 months. Vietnam is building a national land registration database, and some localities have already digitized their land records. State protection of property rights is still evolving. The law does not clearly specify circumstances in which the government may invoke eminent domain. Under the Housing Law and Real Estate Business Law, the government can take land if it deems it necessary for socio-economic development in the public or national interest and the prime minister, National Assembly, or Provincial People’s Council approves such action. However, the law only loosely defines “socio-economic development.” Disputes over land rights continue to be a significant driver of social protests in Vietnam. Foreign investors also may be exposed to land disputes through merger and acquisition activities when they buy into a local company or implement large-scale infrastructure projects. Foreign investors can lease land for renewable periods of 50 years, and up to 70 years in some underdeveloped areas. This allows titleholders to conduct property transactions, including mortgages on property. Some investors have encountered difficulties amending investment licenses to expand operations onto land adjoining existing facilities. Investors also note that local authorities may seek to increase requirements for land use rights when current rights must be renewed, particularly when the investment in question competes with Vietnamese companies. In early 2024, Vietnam adopted a new Land Law that, together with an updated Housing Law and Real Estate Business Law, aims to facilitate improved opportunities for investment in property, including by foreign investors. Vietnam is a contracting party to the Cape Town Convention (CTC) and the Protocol on Matters Specific to Aircraft Equipment. U.S. Embassy Hanoi has been approached about a dispute under the CTC. Intellectual Property Vietnam remains on the Special 301 Report Watch List and Saigon Square Shopping Mall in Ho Chi Minh City remains on the Notorious Markets List. Vietnam does not have a strong record on protecting and enforcing intellectual property (IP) rights. Fractured authority and a lack of coordination among ministries and agencies responsible for enforcement are the primary obstacles, and capacity constraints related to enforcement persist, in part, due to a lack of resources and IP expertise. Vietnam has no specialized IP courts or judges and continues to rely heavily on administrative enforcement actions, which prioritize ending infringing behavior rather than imposing penalties on violators and have consistently failed to deter widespread counterfeiting and piracy. There have been some positive developments since 2020, such as: the issuance of a national IP strategy, public awareness campaigns and training activities, and reported improvements on border enforcement in some parts of the country. Vietnam’s IP Law was amended in 2022 and took effect at the beginning of 2023. The law brings Vietnam’s IP regulations into line with its commitments under the CPTPP and EVFTA. IP enforcement remains a challenge, and the United States is monitoring the implementation of the IP provisions of the CPTPP and EVFTA. 2024 marked the first time ever that an IP criminal case was brought to trial in Vietnam, and an additional case was brought to trial in 2025, which indicate steps forward for IP enforcement in Vietnam. However, the 2025 USTR Special 301 Report recommends that enforcement authorities should bring more criminal cases against significant piracy sites and consider seeking prison sentences, monetary fines, and other criminal penalties at the higher levels that are available under Vietnamese law. The United States is closely monitoring and engaging with the Vietnamese government on the ongoing implementation of amendments to the Penal Code, particularly with respect to criminal enforcement of IP violations. Counterfeit goods are widely available online and in physical markets. Issues persist with: online piracy (including the use of piracy devices and applications to access unauthorized audiovisual content), a lack of effective criminal measures for cable and satellite signal theft, and both private and public sector software piracy. Vietnam’s system for protecting against the unfair commercial use and unauthorized disclosure of undisclosed tests or other data generated to obtain marketing approval for pharmaceutical products needs further clarification. In its international agreements, Vietnam has committed to strengthening its IP regime. In September 2019, Vietnam acceded to the Hague Agreement Concerning the International Registration of Industrial Designs, and the United States is monitoring implementation of that agreement. Vietnam officially joined the World Intellectual Property Organization (WIPO) Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure in June 2021, the WIPO Copyright Treaty in November 2021, and the WIPO Performances and Phonograms Treaty in April 2022. In July 2022, Vietnam released a roadmap to implement the Budapest Treaty. The United States, through the U.S.-Vietnam Trade and Investment Framework Agreement and other bilateral fora, continues to urge Vietnam to address IP issues and provide interested stakeholders with meaningful opportunities for input as it proceeds with these reforms. The United States and Vietnam signed a Customs Mutual Assistance Agreement in December 2019, which will facilitate bilateral cooperation in IP enforcement. For more information, please see the following reports from the Office of the U.S. Trade Representative: Special 301 Report Notorious Markets Report Additional information about national laws and points of contact at local IP offices are available on WIPO’s country profiles . Financial Sector Capital Markets and Portfolio Investment The country has two stock markets: the Ho Chi Minh City Stock Exchange (HOSE), which lists publicly traded companies; and the Hanoi Stock Exchange (HNX), which lists bonds and derivatives. The Securities Law states that Vietnam Exchange, a parent company for both exchanges, with board members appointed by the government, will manage trading operations. By the end of June 2025, HNX plans to complete transferring all its listed stocks to HOSE and focus on bonds and derivatives; HOSE will focus on listed stocks, fund certificates, warrants, and stocks for the unlisted public company market, which is currently managed by the HNX. Morgan Stanley Capital International classifies Vietnam as a frontier market due to FOLs as well as shortcomings related to equal rights for foreign investors, information flow, foreign exchange liberalization, and market infrastructure. The frontier market designation precludes some of the world’s biggest asset managers from investing in Vietnam. Vietnam did not meet its goal of being considered an emerging market in 2020 and pushed back the timeline to 2025. Vietnam took a step toward meeting criteria for an upgrade in November 2024 by introducing measures to eliminate pre-funding requirements for securities trades. Foreign investors often face difficulties in making portfolio investments because of cumbersome bureaucratic procedures. Furthermore, in the first three months of 2021, surges in trading frequently crashed the HOSE’s decades-old technology platform, resulting in investor frustration. Vietnam put into place an interim trading platform in July 2021 that has addressed the HOSE’s overload issues while it awaits a new trading system. As of early 2024, the HOSE had begun conducting trial runs of a new trading system, which will help meet market requirements, including with respect to: market information, market surveillance, settlement, and registration and depository. There is sufficient liquidity in the market to enter and maintain sizable positions. Combined market capitalization at the end of 2024 was approximately $288 billion, equal to 63 percent of Vietnam’s GDP, with the HOSE accounting for $208 billion. The government maintains a target for stock market capitalization reaching 100 percent of GDP by 2025 and 120 percent of GDP by 2030. The government maintains a similar target for outstanding bond market debt reaching 58 percent of GDP—with corporate debt accounting for at least 25 percent of GDP—by 2030. Vietnam complies with the International Monetary Fund’s (IMF) Article VIII. The government notified the IMF that it accepted the obligations of Article VIII, Sections 2, 3, and 4, effective November 8, 2005. Money and Banking System Vietnam’s banking sector has been stable since recovering from the 2008 global recession. Nevertheless, the State Bank of Vietnam (SBV), Vietnam’s central bank, estimated in 2023 that 25 percent of Vietnam’s population is underbanked or lacks bank accounts due to a preference for cash, distrust in commercial banking, limited geographical distribution of banks, and a lack of financial acumen. The World Bank’s Global Findex Database 2017 estimated that only 31 percent of Vietnamese over the age of 15 had an account at a financial institution or through a mobile money provider. The COVID-19 pandemic increased strains on the financial system as a growing number of debtors were unable to make loan payments. In 2024, the ratio of on-balance sheet non-performing loans continued to climb, above 5 percent, up from 4.56 percent at the end of 2023 and from 2.0 percent at the end of 2022. By the end of 2024, the banking sector’s estimated total assets stood at $908 billion, of which $379 billion belonged to seven state-owned (including majority state-owned) commercial banks, accounting for over 41 percent of total assets in the sector. Though classified as joint-stock (private) commercial banks, following are all majority-owned by SBV: the Bank for Investment and Development of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), and Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank). SBV also holds 100 percent of Agribank. In early 2025, SBV completed the transfer of four underperforming banks to new owners Local banks generally allocate credit on market terms, but the authorities maintain an annual cap on credit growth, and the banking sector is not as sophisticated or well-capitalized as those in advanced economies. Foreign investors can acquire credit in the local market, but both foreign and domestic firms often seek foreign financing since domestic banks do not have sufficient capital at appropriate interest rate levels for a significant number of projects. Recent legal changes have also tightened single and group borrower limits imposed on banks. Currently, the total FOL in a Vietnamese bank is 30 percent. Specifically for foreign investors, there is also a five percent limit for non-strategic individual investors, a 15 percent limit for non-strategic institutional investors, and a 20 percent limit for strategic institutional partners. These limits are subject to change following the passage of legislation in early 2024 that lowered similar limits for domestic shareholders. In 2025, Vietnam lifted the FOL to 49 percent for banks that acquire or participate in restructuring “weak” banks. The U.S. Mission in Vietnam did not find any evidence that a Vietnamese bank had lost a correspondent banking relationship in the past three years; there is also no evidence that a correspondent banking relationship is currently in jeopardy. Vietnam was added to the Financial Action Task Force’s list of jurisdictions under increased monitoring in June 2023. Vietnam passed an updated Law on Credit Institutions in 2024 that contains measures meant to, among other things, improve financial stability, expand SBV’s powers of intervention, combat cross-ownership, tighten ownership limits, and codify related regulations into law. Foreign Exchange and Remittances Foreign Exchange There are no legal restrictions on foreign investors converting and repatriating earnings or investment capital from Vietnam. A foreign investor can convert and repatriate earnings, provided the investor has the supporting documents required by law, proving that they have completed financial obligations, including with respect to corporate income tax declarations and payments. SBV sets the interbank lending rate and announces a daily interbank reference exchange rate. SBV determines the latter based on the previous day’s average interbank exchange rates, while considering movements in the currencies of Vietnam’s major trade and investment partners. Remittance Policies Vietnam mandates that in-country transactions be made in Vietnamese dong. The government allows foreign businesses to remit lawful profits, capital contributions, and other legal investment earnings via authorized institutions that handle foreign currency transactions. Although foreign companies can remit profits legally, sometimes these companies encounter bureaucratic difficulties, as they are required to provide supporting documentation such as: audited financial statements, import/foreign-service procurement contracts, and proof of tax obligation fulfillment. SBV also requires foreign investors to submit notification of profit remittance abroad to tax authorities at least seven working days prior to the remittance. The inflow of foreign currency into Vietnam is less constrained. There are no recent changes or plans to change remittance policies that either tighten or relax access to foreign exchange for profit remittances. Sovereign Wealth Funds The wholly state-owned State Capital Investment Corporation (SCIC), established in 2005, acts as a sovereign wealth fund for Vietnam. SCIC has been under the supervision of MOF since February 2025, following the dissolution of the Committee for Management of State Capital at Enterprises (CMSC). SCIC does not follow the Santiago Principles, nor does it participate in the International Forum of Sovereign Wealth Funds. It is best described as a strategic fund. SCIC’s entire portfolio is invested in Vietnam, and its investment of dividends and proceeds does not appear to have any ramifications for U.S. investors. SCIC’s financial statements are audited and can be found on SCIC’s website . SCIC’s financial report as of December 31, 2024, indicated $2.5 billion in assets under management. State-owned Enterprises The 2020 Enterprises Law, which came into effect at the beginning of 2021, defines an SOE as an enterprise that is more than 50 percent owned by the government. Vietnam does not officially publish a list of SOEs, but according to a 2022 report by the OECD, Vietnam has approximately 2,100 SOEs. According to government statistics in 2023, SOEs accounted for 29 percent of Vietnam’s GDP and 28 percent of government budget revenue, while counting approximately one million employees among their ranks. Between 2018 and 2025, CMSC managed 19 of Vietnam’s most significant SOEs with a view to increased transparency and accountability. Following CMSC’s dissolution in February 2025, ownership of the SOEs it had been overseeing—representing a combined $46 billion in capital—was transferred largely to MOF. SOEs do not operate on a level playing field with domestic or foreign enterprises and continue to benefit from preferential access to resources such as land and capital, as well as political largesse. Third-party market analysts note that a significant number of SOEs: have extensive liabilities, including pensions owed; maintain real estate holdings in areas not related to SOEs’ ostensible remit, and demonstrate a lack of transparency with respect to operations and financing. Some of Vietnam’s SOEs operate internationally. The OECD has reviewed the corporate governance of SOEs in Vietnam, finding that Vietnam still faces many challenges in further improving SOE governance and efficiency despite having taken important steps in recent years to make relevant improvements. Privatization Program Vietnam officially started privatizing SOEs in 1998. While the number of Vietnamese SOEs has narrowed considerably since the 1990s, privatization efforts have slowed considerably in recent years, owing largely to unrealistic deadlines, unclear directions from the government, heavy bureaucracy, governmental insistence on maintaining stakes in SOEs even after privatizations, and reluctance on the part of prospective investors. Vietnam has laws to combat corruption by public officials, and they extend to all citizens. Corruption, including bribery, is criminalized primarily under the Anti-Corruption Law and Penal Code. Nevertheless, corruption remains rife. Corruption is due in large part to low levels of transparency, accountability, and media freedom, as well as poor remuneration for government officials and inadequate systems for holding officials accountable. Competition among agencies for control over businesses and investment projects has created overlapping jurisdictions and bureaucratic procedures that, in turn, create opportunities for corruption. Legal and regulatory frameworks for controlling conflicts of interest are inadequate. Civil society organizations have encouraged the government to establish a single independent agency with oversight and enforcement authority to ensure enforcement of anti-corruption laws and regulations. Vietnam is party to the UN Convention against Corruption. Resources to Report Corruption Communist Party Central Committee Internal Affairs Mr. Phan Dinh Trac, Chairman 4 Nguyen Canh Chan, Ba Dinh, Hanoi Tel ephone : +84 0804-3557 Towards Transparency Ms. Nguyen Thi Kieu Vien, Executive Director Floor 4, No 37 Lane 35, Cat Linh Street, Dong Da, Hanoi, Vietnam Tel ephone : +84 24-37153532 Political and Security Environment Vietnam is a unitary single-party state, and its political and security environment is largely stable. An attack on government offices in the central border province of Dak Lak killed nine people in June 2023. Protests and civil unrest have been rare in recent years, though there are occasional demonstrations related to environmental, labor, land, and other disputes. Vietnam strictly controls the media and internet use. Vietnam ranks 174th out of 180 jurisdictions in the 2024 Reporters Without Borders’ World Press Freedom Index. The NGO operating environment remains restrictive. In August 2019, online commentators expressed outrage over the slow government response to an industrial fire in Hanoi that released unknown amounts of mercury. Other localized protests in 2019 and early 2020 broke out over alleged illegal dumping in waterways and on public land, as well as perceived government attempts to cover up potential risks to local communities. Citizens sometimes protest China’s actions, usually online. In June 2019, when Chinese Coast Guard vessels harassed the operations of Russian oil and gas company Rosneft in Vietnam’s highest-producing natural gas field, Vietnamese citizens protested via Facebook and, in a few instances, in public. In April 2016, after the Formosa Steel plant discharged toxic pollutants into the ocean and killed a large number of fish, affected fishermen and residents in central Vietnam began a series of regular protests against the company and the government’s lack of response to the disaster. Protests continued into 2017 in multiple cities until security forces largely suppressed the unrest. Many activists who helped organize or document these protests were subsequently arrested and imprisoned. Labor Policies and Practices Although Vietnam has made some progress on labor issues in recent years, including, in theory, allowing the formation of independent unions, the sole union that has any real authority is the CPV-controlled Vietnam General Confederation of Labor. Workers will not be able to form independent unions legally until the government issues guidance on implementation of the 2019 Labor Code, including decrees on procedures to establish and join independent unions, and determines the level of autonomy independent unions will have in administering their affairs; this guidance remains pending. Vietnam has been a member of the International Labor Organization (ILO) since 1992 and has ratified nine of the core ILO conventions (Conventions 100 and 111 on discrimination, Conventions 138 and 182 on child labor, Conventions 29 and 105 on forced labor, Conventions 155 and 187 on occupational safety and health, and Convention 98 on collective bargaining). Labor dispute resolution mechanisms vary. Individual labor disputes and rights-based collective labor disputes must go through a defined process that includes: labor conciliation, labor arbitration, and a court hearing. Only interest-based collective labor disputes may legally be pursued via demonstration, and only after going through conciliation and arbitration. However, in practice, wildcat strikes organized by ad hoc groups – mostly related to disputes over wages and allowances – are not uncommon and are usually resolved through negotiation with management. In 2024, the number of wildcat strikes nationwide decreased to 60, from around 150 in 2023. An employer is permitted to dismiss employees due to: technological changes, organizational changes (in cases of a merger, consolidation, or cessation of operation of one or more departments), when the employer faces economic difficulties, or for disruptive behavior in the workplace. There are no waivers on labor requirements to attract foreign investment. U.S. firms across multiple sectors report challenges finding workers with necessary skills. Despite having a high educational universalization rate, Vietnam has a relatively low-skilled workforce compared to many other countries in the region. Data by ManpowerGroup show that in 2022, less than 12 percent of the labor force comprised skilled workers, a level almost unchanged from three years previously. Only 5 percent of Vietnamese workers can speak English, a relatively low figure compared to other countries in the region. Labor productivity is also low compared to that of regional peers. As of 2019, the average annual income of foreign expatriates working in Vietnam was higher than the world average, $78,750 compared to $75,996 worldwide. However, since 2019, getting and renewing work permits for foreign expatriates has become more difficult due to a new requirement that all foreign expatriates hold a bachelor’s degree as well as at least three years of working experience abroad in specialized training suitable for the expected job position in Vietnam, or else at least five years of working experience abroad and a practicing certificate suitable for the intended job position. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs The Overseas Private Investment Corporation, DFC’s predecessor, signed a bilateral agreement with Vietnam in 1998. DFC currently has several active projects in Vietnam, with commitments exceeding $700 million to date. DFC is actively pursuing new financing and investment opportunities in Vietnam. Contact for More Information Economic Section U.S. Embassy 7 Lang Ha, Ba Dinh, Hanoi, Vietnam Telephone: +84-24-3850-5000 Contact Us EXECUTIVE SUMMARY Section 1. Policies toward Foreign Direct Investment Limits on Foreign Control and Right to Private Ownership and Establishment Other Investment Policy Reviews Business Facilitation Outward Investment Limits on Foreign Control and Right to Private Ownership and Establishment Other Investment Policy Reviews Business Facilitation Outward Investment Section 2. Investment and Taxation Treaties Section 3. Legal Regime Transparency of the Regulatory System International Regulatory Considerations Legal System and Judicial Independence Laws and Regulations on Foreign Direct Investment Competition and Antitrust Laws Expropriation and Compensation Dispute Settlement ICSID Convention and New York Convention Investor-State Dispute Settlement International Commercial Arbitration and Foreign Courts Bankruptcy/Insolvency Regulations Transparency of the Regulatory System International Regulatory Considerations Legal System and Judicial Independence Laws and Regulations on Foreign Direct Investment Competition and Antitrust Laws Expropriation and Compensation Dispute Settlement ICSID Convention and New York Convention Investor-State Dispute Settlement International Commercial Arbitration and Foreign Courts ICSID Convention and New York Convention Investor-State Dispute Settlement International Commercial Arbitration and Foreign Courts Bankruptcy/Insolvency Regulations Section 4. Industrial Policies Investment Incentives Foreign Trade Zones/Free Ports/Trade Facilitation Performance and Data Localization Requirements Investment Incentives Foreign Trade Zones/Free Ports/Trade Facilitation Performance and Data Localization Requirements Section 5. Protection of Property Rights Real Property Intellectual Property Intellectual Property Section 6. Financial Sector Capital Markets and Portfolio Investment Money and Banking System Foreign Exchange and Remittances Foreign Exchange Remittance Policies Sovereign Wealth Funds Capital Markets and Portfolio Investment Money and Banking System Foreign Exchange and Remittances Foreign Exchange Remittance Policies Foreign Exchange Remittance Policies Sovereign Wealth Funds Section 7. State-owned Enterprises Privatization Program Privatization Program Section 8. Corruption Resources to Report Corruption Resources to Report Corruption Section 9. Political and Security Environment Section 10. Labor Policies and Practices Section 11. U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs Section 12. Contact for More Information We use cookies to make our website work better and improve your experience. By continuing to use the site, you agree to our privacy policy. Manage services Manage {vendor_count} vendors Read more about these purposes We use cookies to make our website work better and improve your experience. By continuing to use the site, you agree to our privacy policy. Manage services Manage {vendor_count} vendors Read more about these purposes