Slashing business conditions to facilitate enterprises

The Government has submitted to the National Assembly for consideration a draft law amending the Law on Investment, proposing the slash of 58 conditional investment and business lines. The move is expected to create more room for enterprises to enter the market.

Seaport operation services are no longer included in the list of conditional business lines. In the photo: A corner of Phuoc An Port. Photo: Vuong The

However, a key issue is that the cuts must not merely reduce the number of sectors on the list but must genuinely help reduce procedures, costs, and barriers for enterprises.

Cutting business procedures

According to the Government's proposal, the draft Law amending and supplementing Article 6 and Appendix IV on the list of conditional investment and business lines of the Law on Investment is expected to slash 58 conditional investment and business lines. The goal is to continue simplifying investment and business conditions, make a strong shift from pre-inspection to post-inspection, and create an open and transparent investment environment while ensuring effective state management.

This marks the next step following July 1, 2026, when the number of conditional investment and business lines was reduced from 198 to 142 under the Government's Resolution No. 66.17/2026/NQ-CP on cutting and amending conditional investment and business lines. Within a short period, the Government has issued 11 resolutions related to reducing business conditions and administrative procedures.

Previous reviews focused on business lines that no longer genuinely need to be controlled through business conditions, sectors that can be managed through technical standards and regulations, or shifted to post-inspection, as well as conditions that are unclear, overlapping, or already controlled through other management tools.

According to Minister of Finance Ngo Van Tuan, the slash of 58 conditional investment and business lines and the amendment of the scope of 16 sectors are expected to eliminate approximately 786 business conditions and 232 administrative procedures, thereby reducing compliance costs by about VND 175 billion per year. The time required to complete procedures will be reduced by about 7,500 hours per year, contributing to more favorable conditions for citizens and enterprises in production and business activities.

According to experts, as the entire country strives to achieve double-digit economic growth, facilitating businesses is extremely important. In particular, the private sector is facing dual pressures from long-standing structural limitations and unpredictable external fluctuations. Small- and medium-sized enterprises and business households are the most vulnerable groups. Correct and timely legislative decisions provide significant support for the resilience of the business community.

Ensuring effectiveness and substance

At the National Assembly session on August 5, during discussions on the draft Law amending and supplementing Article 6 and Appendix IV on the list of conditional investment and business lines of the Law on Investment, Trinh Xuan An, a National Assembly deputy from Dong Nai City, stated that the reduction of investment and business conditions must be carried out properly and effectively, rather than focusing solely on reducing their number. The key issue is not how many conditional investment and business lines are removed, but what tools the State will use to manage them after the cuts, while still ensuring the public interest and effective state management.

Products of Dong Nai enterprises are displayed at the Vietnam Private Sector Forum 2026.

Similarly, in assessing the reduction of business conditions, Dau Anh Tuan, Deputy General Secretary and Head of the Legal Affairs Department of the Vietnam Chamber of Commerce and Industry (VCCI), stated that the Government has issued many policies to reduce business conditions, which are highly anticipated by the business community. Signs of a perfunctory approach during implementation, such as mechanically merging two conditional business sectors into one simply to reduce the number, have been resolutely rectified by Government leaders. This demonstrates that reform must not only be formal but also substantive and effective.

Nevertheless, the gap between policy and reality remains very wide. In practice, many "hidden business conditions," overlapping regulations, and shortcomings in implementation have become major barriers for enterprises. According to Dau Anh Tuan, the determination to pursue reform at the central level is very clear, but implementation at lower levels has yet to keep pace. Localities need to regard the effectiveness of handling recommendations as a measure of performance rather than merely going through the motions, thereby creating momentum to stimulate enterprises' demand for investment and business activities.

For Dong Nai, creating an investment and business environment and attracting enterprises are matters of major concern to the locality. At the local dialogue session of the Vietnam Private Sector Forum 2026 held on August 7, Nguyen Kim Long, Member of the Dong Nai City Party Committee’s Standing Board and Permanent Vice Chairman of the City People's Committee, affirmed that administrative procedure reform would continue, barriers would be removed, and a favorable environment would be created for enterprises. The city's management will make a strong shift toward facilitating, serving, connecting resources, and accompanying enterprises. Dong Nai will continue to promote administrative reform, review processes, and clearly define focal points, responsibilities, deadlines, and results to avoid wasting enterprises' time and resources.

According to experts, the reduction of administrative procedures and business conditions must avoid a situation in which many business conditions, after being abolished, are "transformed" into technical standards and regulations with more complex requirements, causing enterprises' compliance costs to continue rising.

By Vuong The – Translated by Minh Hong, Minho