Scenario: a domestic investor asks whether the investment prohibitions apply only to foreigners — planning a debt-collection agency ‘since we’re local’. The answer stops the plan: Article 6 of the Investment Law 143/2025/QH15 prohibits the listed business lines for all investors, domestic and foreign alike. ‘Prohibited’ is not a foreign-investor concept; it is a market concept.
The complete list: 11 prohibited groups
Article 6 of the Investment Law 143/2025/QH15 (effective 1 March 2026) prohibits:
- Trading in narcotics listed in Appendix I of the Law;
- Trading in chemicals and minerals listed in Appendix II;
- Trading in specimens of wild fauna and flora exploited from nature as listed in Appendix I of CITES, and specimens of endangered, precious and rare forest plants, forest animals and aquatic species of Group I exploited from nature as listed in Appendix III;
- Prostitution business;
- Human trafficking; trading in human tissues, corpses, body parts and fetuses;
- Business related to human cloning;
- Firecracker trading;
- Debt collection services;
- Trading in national treasures;
- Export of relics and antiques;
- Trading in e-cigarettes and heated tobacco products.
The law carves out narrow exceptions: production and use of the items in the first three groups for analysis, testing, scientific research, healthcare, pharmaceutical production, crime investigation and national defense/security follow Government regulations.
Prohibited vs restricted market access: the distinction that saves deals
Three different legal regimes are constantly confused:
- Prohibited (Article 6): no one may do it — domestic or foreign. No license can legalize it.
- Conditional business lines (Article 7, Appendix IV): anyone may do it after meeting conditions and obtaining the required license or certification.
- Restricted market access for foreign investors (Article 8): foreign investors face additional conditions — ownership ratios, investment forms, activity scope, investor capacity — published in the Government’s market access list.
A sector can sit in the second or third box and still be fully open in practice once conditions are met; a sector in the first box is closed by statute, and structuring around it (nominees, offshore contracts) does not cure the illegality.
Penalties for crossing the line
Article 16 of Decree 122/2021/ND-CP sets fines of VND 200–300 million for conducting investment business in prohibited lines, plus remedial measures: forced termination of the activity and disgorgement of illegal gains. Beyond administrative fines, related conduct (narcotics, human trafficking, firecrackers) triggers criminal liability under the Penal Code — the administrative fine is the lightest possible outcome.
Frequently asked questions
1. Do the prohibitions apply to Vietnamese investors too?
Yes — Article 6 applies to all investors without distinction.
2. Can a prohibited activity be licensed exceptionally?
No. Prohibition is statutory; no authority can license what the law prohibits (except the narrow scientific/medical/defense exceptions in the law itself).
3. Is debt collection really prohibited?
Yes — debt collection services are expressly listed in Article 6; the industry was abolished as a business line.
4. What is the fine for operating a prohibited line?
VND 200–300 million under Decree 122/2021/ND-CP, plus termination and disgorgement of illegal profits.
5. How do the appendices change?
The Government reviews the prohibited lines and appendices as socio-economic conditions evolve and submits amendments to the National Assembly — investors should track the current appendices, not old lists.
This article has been quality-reviewed by the FLAW AI Legal Council