Business and investment environment
Hanoi, located in the north, is the seat of government of the Socialist Republic of Vietnam, while Ho
Chi Minh City in the south is the largest city and the primary area of economic activity.
Since the enactment of Vietnam’s doi moi (renovation) policy in 1986, Vietnamese authorities have
committed to increased economic liberalization and structural reforms needed to modernize the
economy and to produce more competitive, export-driven industries. This densely populated
country offers low-cost labour and abundant natural resources, which are positive factors for
Vietnam is geared towards achieving long-term sustained growth, and is committed towards further
reforms in the areas of macroeconomic policy, public sector financial management, accelerating
reforms of state-owned enterprises and fair and transparent laws and regulations.
Vietnam is a member of the following regional and global organizations: World Trade Organization
(January 2007), Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation
(APEC), International Monetary Fund (IMF), and World Intellectual Property Organization (WIPO).
The legal system has evolved from a number of origins, mainly the communist legal theory and
French civil law. Following Vietnam’s accession to the World Trade Organization (WTO) on 11
January 2007, and in order to comply with the requirements, the Vietnamese National Assembly
passed the Enterprise Law (EL) and the Investment Law (IL), which both became effective on 1 July
2006. On 26 November 2014, the Vietnamese National Assembly passed the new EL and IL, which
took effect as of 1 July 2015. The new legislation states that investment is allowed in any business
sector as long as it is not prohibited or restricted.
Legislation in Vietnam includes:
- the laws and ordinances drafted by the Ministry. Laws are enacted by the National Assembly
and ordinances are issued by the Standing Committee of the National Assembly;
- an implementing Decree issued by the government; and
- an implementing Circular issued by the same Ministry.
The legal system in Vietnam has evolved rapidly and the legal texts must be published in the Official
Gazette as a compulsory condition before becoming effective.
Forms of Business
Corporate Immigration and Emigration
Investment Guarantee and Protection
Economic and Trade Agreements