Vietnam is preparing for a significant shift in the way foreign companies enter and operate in the Vietnamese market.

For international businesses considering Vietnam as a manufacturing base, regional headquarters, technology hub, or new consumer market, the question is no longer simply whether Vietnam is attractive.

The more important question is:

How easy will it be to enter and operate in Vietnam over the next few years?

A major answer came on August 24, 2026, when Vietnam's National Assembly passed Law No. 24/2026/QH16, amending and supplementing several provisions of the Investment Law.

The new law will take effect on March 1, 2027. It significantly reduces the number of conditional business sectors and is expected to simplify hundreds of business conditions and administrative procedures.

For foreign investors planning a Vietnam market entry in 2027 and beyond, this reform deserves close attention.

1. Vietnam Is Moving Toward a More Open Investment Environment

Vietnam's 2026 investment reform is part of a broader effort to reduce unnecessary regulatory barriers and improve the predictability of the investment environment.

According to the Government's explanation of Law No. 24/2026/QH16, the reform:

• removes 62 conditional business sectors
• amends 14 other conditional business sectors
• eliminates approximately 786 business conditions
• simplifies approximately 232 administrative procedures
• is expected to reduce compliance costs by approximately VND 175 billion per year
• is expected to reduce compliance time by approximately 7,500 hours per year.

These are not simply changes to a list of industries.

They are intended to reduce the cost and complexity associated with entering and operating a business in Vietnam.

The Government has specifically stated that reducing and simplifying conditional business sectors and related procedures should help:

• reduce market-entry costs;
• simplify administrative processes;
• improve transparency;
• improve predictability of the investment and business environment;
• encourage innovation; and
• mobilize resources more effectively for economic development.

For a foreign company evaluating several Southeast Asian markets, these factors can have a meaningful impact on the total cost and timeline of establishing operations.

2. The Most Important Point: The Reform Takes Effect in 2027

There is an important distinction that foreign investors should understand.

Law No. 24/2026/QH16 was enacted on August 24, 2026, but its main provisions will take effect on March 1, 2027.

Therefore, companies should not interpret the reform as meaning that all 786 business conditions have already disappeared.

Instead, 2026–2027 is a transition period.

For companies currently evaluating Vietnam, this creates an interesting strategic opportunity.

A company considering entering Vietnam in 2027 could begin its:

before the new framework becomes effective.

However, the precise treatment of each industry needs to be reviewed against the applicable regulations and implementing guidance.

The Government has already assigned ministries to prepare detailed regulations for implementation of parts of Law 24/2026/QH16.

That means investors should monitor not only the law itself, but also the implementing decrees and sector-specific regulations that will determine how the reforms work in practice.

3. 62 Conditional Business Sectors Are Being Removed

One of the most significant changes is the reduction of 62 sectors from the list of conditional business sectors, together with amendments to another 14 sectors.

Why does this matter?

A conditional business sector generally means that a company must satisfy additional requirements before or during the operation of that business.

These requirements can involve:

• licenses;
• certificates;
• professional qualifications;
• technical conditions;
• facilities;
• capital requirements;
• personnel requirements; or
• other regulatory conditions.

When a sector is removed from the conditional list, companies can potentially operate without those specific investment-business conditions, although other laws and technical regulations may still apply.

The Government's official explanation is particularly clear on this point: for sectors removed from the conditional-business list, organizations and individuals may conduct business without having to satisfy the former investment-business conditions. Existing licenses may also continue under specified transitional rules.

This could be especially relevant to international companies that previously viewed Vietnam's regulatory requirements as a barrier to entry.

4. Foreign Investors Still Need to Check Market-Access Restrictions

It is important, however, not to interpret the reform as “Vietnam has removed restrictions for foreign investors.”

Foreign investors still operate under a specific market-access framework.

Vietnam's 2025 Investment Law establishes a basic principle:

Foreign investors receive market access conditions equivalent to domestic investors except in sectors included on the restricted market-access list.

For restricted sectors, conditions can include:

• foreign ownership limits;
• permitted investment methods;
• scope of investment activities;
• investor qualifications;
• required Vietnamese partners; and
• other conditions established by Vietnamese law or international treaties.

This distinction is extremely important for companies conducting due diligence.

Removing a business from the conditional-business list does not automatically mean that all foreign ownership restrictions disappear.

Foreign investors should therefore evaluate two separate questions:

Question 1

Is the business sector conditional under Vietnamese investment/business regulations?

Question 2

Is the sector restricted for foreign market access?

These are related—but they are not the same thing.