CaliToday (17/10/2025): In a significant move to enhance its economic competitiveness and create a more favorable investment climate, the Vietnamese government has officially proposed the abolition of all business conditions for 21 specific sectors. The initiative is a key part of a broader national effort to streamline bureaucracy and reduce administrative burdens on enterprises.
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| Deputy Minister of Finance Nguyen Thi Bich Ngoc presented the draft Law on Investment (amended). |
The proposal, submitted for review, aims to create a more open and transparent business environment by removing unnecessary barriers to market entry. These "business conditions" often refer to a complex web of licenses, certificates, and specific legal capital requirements that companies must meet before they can operate. For years, these regulations have been cited by both domestic and international business communities as a source of red tape, increasing costs and delaying projects.
By eliminating these requirements for the 21 targeted industries, the government intends to unleash entrepreneurial potential, stimulate competition, and attract a new wave of investment. The move is expected to have a particularly strong impact on small and medium-sized enterprises (SMEs), which are often disproportionately affected by cumbersome regulatory compliance.
While the full list of the 21 sectors has not yet been publicly detailed, such deregulation efforts typically target industries where conditions are deemed redundant, overly restrictive, or no longer aligned with modern market realities.
A Welcomed Step, But Calls for Deeper Reform Persist
The government's proposal has been widely welcomed by business associations and economic experts, who view it as a positive and concrete step towards meaningful reform. They acknowledge that this action signals a strong commitment from the government to listen to the concerns of the private sector.
However, alongside the praise, there is a strong consensus that this should be the beginning, not the end, of the reform process. Many in the business community argue that a far more extensive review of all existing business conditions is necessary.
"This is a crucial and positive development," commented an economic analyst based in Ho Chi Minh City. "But the reality is that businesses still face a multitude of other permits and 'sub-licenses' (known locally as giấy phép con) issued by various ministries and local authorities. To truly create a level playing field, the review must be broader and more aggressive."
These lingering concerns highlight the complexity of Vietnam's regulatory landscape. The call for continued review and further cuts underscores a desire for a fundamental shift in administrative culture—from one of control and gatekeeping to one of facilitation and support for businesses.
The proposal will now undergo further review before a final decision is made. Its successful implementation, and the government's response to the calls for deeper reform, will be closely watched as a key indicator of Vietnam's long-term commitment to improving its ease of doing business and solidifying its status as a dynamic and attractive investment destination in Southeast Asia.
