Commercial areas prohibited by Vietnamese laws?
“Businesses are free to do business in all areas of activity that are not prohibited by law” is one of the business rights recognized in applicable business law. What are the prohibited areas of activity that foreign investors should be aware of when considering investing in Vietnam?
- PROHIBITED BUSINESS ZONES
According to article 6 of the applicable investment law, there are 8 prohibited areas of activity, including:
- Trade in narcotic substances
The prohibited narcotic substances are specified in Annex I of the Investment Law 2020, comprising 47 types, which can be followed by typical narcotic substances: Cetorphine, Acetyl-alpha-methylfenany, Alphacetylmethadol, Alpha-methylfentanyl, Beta- hydroxyfentanyl, Brolamphetamine, Cannabis and cannabis preparations, Heroin, opium and opium preparations …
- Trade in chemicals and minerals
According to Annex II of the Investment Law 2020, there are 18 types of chemicals and minerals prohibited for investment and trade, including some typical substances: combustion of sulfur-containing gases, tear gas; Dodecyl benzene sulfonic acid
- Trade in specimens of wild flora and fauna
Prohibited commercial specimens of wild plants and animals are specified in Annex 1 of the International Convention on Endangered Species of Wild Plants and Animals, divided into the industry of vertebrates, including mammals, birds, reptiles, amphibians, cartilages, fish, barramundi and echinoderms, arthropods, molluscs and zygotes.
Specimens of threatened and rare wild animals and plants of group I come from nature, prohibited for business and investment are specified in Annex III of the Investment Law of 2014. magnolia, pine industry . Animals include mammals, reptiles, birds …
- Trafficking in human beings; trade in human tissues and body parts
- Commercial activities relating to asexual human reproduction
- Firecracker trade
- Provision of debt collection services.
As a result, organizations and individuals are not permitted to conduct business investment activities in the industries and trades mentioned above.
- LEGAL CONSEQUENCES OF DOING BUSINESS IN A PROHIBITED BUSINESS ZONE
According to the provisions of the Company Law 2020, one of the conditions for granting a certificate of company registration to an organization or an individual is that the field of activity of the company is not prohibited. When registering business areas prohibited by Vietnamese laws, organizations and individuals will not be able to obtain a certificate of business registration.
In addition, doing business in a no-trade zone, if detected, may be subject to criminal prosecution for the prostitution trade; illicit trafficking in drugs, trade in firecrackers, trade in human tissues, tissues and organs. The highest level of aggravation can go as far as life imprisonment.
- REGULATIONS RESPECTING THE PRODUCTION AND USE OF NARCOTIC SUBSTANCES, CHEMICALS, MINERALS, SAMPLES OF PLANTS AND WILD ANIMALS IN ANALYSIS, TESTS, SCIENTIFIC RESEARCH, MEDICINE, PRODUCTION OF PHARMACEUTICAL PRODUCTS, CRIMINAL INVESTIGATION, SAFE PROTECTION
The production and use of narcotics, chemicals, minerals, specimens of plants and wild animals for the purposes of analysis, testing, scientific research, medicine, production of pharmaceuticals, criminal investigation, security protection are carried out as follows:
- The narcotic substances specified in Annex 1 of the Investment Law may be produced and used by relevant government agencies in accordance with government regulations on the List of Narcotic Substances and Precursors and the 1961 Convention on Combating Narcotics and Precursors. drugs, the 1988 United Nations Convention to Combat Illicit Traffic in Narcotic Drugs and Psychotropic Substances
- The chemicals and minerals specified in Annex 2 of the Investment Law may be produced and used by relevant government agencies in accordance with government regulations on the management of chemicals subject to the Convention. prohibiting the development, production, possession, use and destruction of chemical weapons and guidance documents of the Rotterdam Convention on the Prior Informed Agreement Procedure for Certain Dangerous Chemicals and Medicines genuinely protectors traded internationally
- The species of wild flora and fauna specified in Annex 3 of the Investment Law shall be exploited by the competent authorities in accordance with the government regulations on the management of forest plants and animals. Threatened, precious and rare forests and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).