Vietnam, as an emerging economic power in Southeast Asia, attracts many international companies. However, in this land of opportunities, conducting business often requires special operating rights. This guide aims to provide enterprises with a detailed application guide for special operating licenses in the Vietnamese market.

We will delve into the licensing requirements for key industries such as finance, healthcare, education, telecommunications, tourism, transportation, construction, food production, chemical pharmaceuticals, and energy minerals. Each industry section will provide detailed information on license types, application conditions, required documents, application processes, approval time, and related fees. Whether you are considering entering the Vietnamese market or already operating there, this guide will serve as your reference material. Let’s explore the business opportunities in Vietnam together and help your enterprise thrive in this vibrant market.

Special Operating Licenses in the Aviation Industry

With Vietnam’s continuous economic growth and the rise of the middle class, the demand in the aviation market is expanding, offering opportunities for foreign banks. However, due to the close ties between the aviation industry and national security and economic development, the Vietnamese government has implemented strict control measures, especially high thresholds for foreign enterprises entering the industry.

To conduct aviation-related business in Vietnam, companies must obtain the corresponding special operating licenses. These licenses mainly include the Air Transport Business License, Airport Operation License, Aviation Maintenance Service License, Aviation Training Institution License, and Aircraft Leasing Service License. Among them, the Air Transport Business License is the core and most critical one.

For example, to apply for an Air Transport Business License, enterprises must meet a series of strict conditions. First, the registered capital requirement is no less than 2 trillion Vietnamese Dong, approximately 87 million USD, which is a considerable amount for many small and medium enterprises. Additionally, the Vietnamese side must hold at least 51% of the shares, meaning foreign enterprises must find strong local partners. Moreover, companies need at least three aircraft that meet the requirements of the Civil Aviation Authority of Vietnam, equipped with qualified management and pilot teams, and a detailed business plan and safety management system.

The application process for a transport business license is complex and rigorous. Enterprises need to submit a series of aviation application materials to the Ministry of Transport of Vietnam, including the license application form, company charter and business template, shareholder structure and capital contribution proof, team summary resumes, and related qualifications, aircraft purchase or lease contracts, a detailed business plan, safety management system documents, and financial capability proof. Preparing these materials often takes months, and the requirements are extremely strict. Any oversight might lead to rejection or refusal of the application.

After submission, the Ministry of Transport will conduct a preliminary review lasting about 30 working days, followed by a 15-working-day public notice period. Subsequently, an expert review meeting is organized, and based on the review opinions, enterprises may need to modify and improve the application materials. Finally, the application requires government approval before the license can be issued. The entire approval process typically takes 6 to 12 months, sometimes even longer.

Regarding costs, apart from the substantial capital requirements, enterprises must pay various application and management fees. The application acceptance fee is 50 million Vietnamese Dong, and the license issuance fee is 100 million Vietnamese Dong. Additionally, there are annual management fees, generally 0.5% to 1% of the enterprise’s turnover, which impacts long-term operating costs.

It is important to note that due to the unique nature of the aviation industry, regulatory policies may adjust at any time. Enterprises need to closely monitor policy changes and respond promptly. During the application process, multiple government departments, including the Ministry of Transport, the Ministry of Planning and Investment, and others, may be involved. It is advisable for enterprises to hire experienced local legal advisors to handle various complex affairs.

Obtaining an operating license is just the first step for enterprises conducting aviation business in Vietnam. Subsequent steps include acquiring related route operating rights, slot resources, and other critical operational resources. Acquiring these resources also requires a rigorous route plan; enterprises must make long-term plans and be fully prepared.

Despite the high entry barrier into Vietnam’s aviation industry, its massive market potential continues to attract numerous investors. As Vietnam’s economy continues to grow, the demand for aviation is expected to remain strong. For enterprises successfully entering the market, this is undoubtedly an excellent opportunity to share in Vietnam’s economic development dividends.

However, before deciding to enter the Vietnamese aviation market, enterprises need to carefully assess their own strengths and risk tolerance. It is recommended to conduct thorough market research, establish connections with potential local partners, and fully understand related laws and regulations. Only with adequate preparation can enterprises establish a foothold in this market full of opportunities and challenges and achieve long-term development.

Special Operating Licenses in the Healthcare Industry

Vietnam’s healthcare industry has developed rapidly in recent years. With population growth, the expansion of the middle class, and the increasing demand for high-quality medical services, this field is attracting more and more investors. However, due to the importance of healthcare to national welfare, the Vietnamese government has implemented strict regulatory and access systems for the industry.

The main special operating licenses in Vietnam’s healthcare industry include Medical Institution Business License, Drug Production License, Drug Business License, and Medical Device Production and Business License, among others. The Medical Institution Business License is the most fundamental and crucial, applicable to various hospitals, clinics, and specialized medical centers.

For example, applying for a Medical Institution Business License involves strict conditions. Firstly, the applying institution must have suitable premises that meet the specified area standards and environmental requirements. Secondly, it must be equipped with the required number and qualified medical personnel, including doctors. Additionally, medical equipment and drug supplies must meet the prescribed standards. Moreover, a comprehensive quality management system and medical waste disposal system must be established.

For foreign enterprises, although establishing fully foreign-owned medical institutions in Vietnam has been relaxed, certain special requirements still need to be met. For instance, the minimum investment for setting up a general hospital is 20 million USD; for specialized hospitals, it is 10 million USD, and for clinics, the minimum investment is 2 million USD. These amounts are much higher than those required for domestic enterprises, reflecting the government’s strict control over foreign medical institutions.

The process of applying for a Medical Institution Business License is equally complex and stringent. Applicants need to submit a range of materials to the local health department (for larger projects, it may need to be submitted to higher authorities), including:

• Application for Establishing a Medical Institution
• Detailed Feasibility Study Report
• Proof of Site Ownership or Lease
• Medical Equipment List and Qualification Certificates
• Medical Personnel Proofs
• Quality Management System and Medical Waste Disposal Plan
• Fire Safety Certification
• Investor Financial Capability Proof

Preparing these materials often takes months, and the requirements are extremely strict. Any oversight might lead to rejection or refusal of the application.

After submission, the health department will organize an expert review, which typically takes 30 to 60 working days. Upon approval, the health department will conduct an on-site inspection to ensure that the actual situation matches the application materials. If everything meets the requirements, the health department will issue the Medical Institution Business License. The entire process, from preparation to obtaining the license, usually takes 6 to 12 months, sometimes even longer.

It is important to note that even after obtaining the business license, medical institutions must undergo regular inspections and evaluations. The license is usually valid for five years and needs to be renewed gradually. Additionally, if the institution wants to expand its scope or make significant adjustments, it needs to reapply or update the license.

In the pharmaceuticals and medical devices fields, regulation is even stricter. Applying for a Drug Production License requires compliance with Good Manufacturing Practice (GMP) standards and a rigorous product registration process. Similarly, the production and business of medical devices require special licenses, with different requirements for different categories.

For foreign investors entering the Vietnamese healthcare market, aside from meeting the licensing requirements, special attention should be paid to the following points:

• Cultural Differences: Understanding Vietnam’s medical culture and patient preferences is key to success.
• Talent Development: Establishing a training system is crucial due to the shortage of qualified medical personnel.
• Technology Transfer: Introducing advanced medical technology is encouraged by the Vietnamese government, which can be an advantage for foreign enterprises.
• Price Control: Certain medical services and drugs are subject to government price controls, which need to be considered in the business plan.
• Insurance Collaboration: Establishing a good relationship with Vietnam’s health insurance system can expand the potential patient base.

The Vietnamese government is actively promoting the development of healthcare, including encouraging Public-Private Partnership (PPP) models, providing more opportunities for enterprises. However, before deciding to enter the Vietnamese healthcare market, enterprises need to carefully assess their own strengths and risk tolerance. It is recommended to conduct thorough market research, establish connections with local medical institutions, and fully understand related laws and regulations.

Special Operating Licenses in the Education Industry

Vietnam’s education industry is undergoing transformative development. As the government places increasing emphasis on national education, the Vietnamese education market exhibits significant potential and vitality. Education, as a critical field concerning the nation’s future, is subject to strict regulation and access systems by the Vietnamese government.

In Vietnam, educational institutions vary widely, from kindergartens to higher education, vocational training to language teaching, and each type has specific license requirements. The main license types include Kindergarten Operating License, Primary School Operating License, Secondary School Operating License, Higher Education Institution Establishment License, Vocational Training Institution License, Language Training Center License, and International School Establishment License, among others. Among these, the Higher Education Institution Establishment License application conditions are extremely stringent and best reflect the Vietnamese government’s high standards for educational quality.

For example, applying for a Higher Education Institution Establishment License involves exceptionally strict conditions. Firstly, the capital requirement is quite high, with a minimum investment of 1 trillion Vietnamese Dong (approximately 43 million USD), of which 51% must come from the Vietnamese side. This requirement not only reflects the Vietnamese government’s emphasis on education investment but also its policy orientation to encourage local capital participation in higher education development.

Land requirements are also stringent, with universities needing at least 10 hectares of land, which can be slightly reduced in provincial cities. This requirement ensures that higher education institutions have sufficient space for teaching, research, and student activities. For foreign investors, acquiring such a large area of land usage rights in Vietnam can be a significant challenge.

Faculty requirements are another key factor. The applying institution must have a sufficient number of qualified teachers, with the number of PhD holders accounting for 25% of the total faculty. This requirement reflects Vietnam’s emphasis on higher education quality, especially given the relatively scarce availability of highly qualified personnel in Vietnam. Foreign investors may need to consider recruiting faculty from abroad while developing a long-term plan for local teacher training.

Regarding curriculum, newly established higher education institutions must offer at least three major undergraduate disciplines. This requires a comprehensive academic planning that goes beyond focusing on a single field. Additionally, curriculum design must consider Vietnam’s national development needs and local employment market realities.

Teaching facilities, libraries, and laboratories must meet the standards set by the Ministry of Education. This involves not only hardware investment but also software systems, teaching equipment, and more. For certain specialized disciplines, dedicated laboratories or training bases may be necessary.

Quality assurance is a particular focus of the Ministry of Education. The applying institution needs to establish a comprehensive education quality assurance system, including internal quality evaluation mechanisms and teaching effectiveness feedback systems. This requires investors to pay attention not only to hardware investment but also to the construction of educational management systems.

The process of applying for a Higher Education Institution Establishment License is similarly complex and stringent. Applicants need to submit a range of materials to the Ministry of Education, including the education license application form, detailed feasibility study report, draft university charter, land usage rights proof or lease agreement, investor financial capability proof, qualifications of the principal and key management personnel, faculty details, curriculum plan, facilities and equipment list, quality assurance system description, and a 5-10 year development plan. Preparing these materials often takes months, and the requirements are extremely strict. Any oversight might lead to rejection or refusal of the application.

After submission, the Ministry of Education will conduct a preliminary review lasting about 45 working days and organize an expert review meeting. Based on the review opinions, the applying institution may need to modify and improve the application materials. Subsequently, the Ministry of Education will conduct a field inspection to ensure that the actual situation matches the application materials. Finally, the Ministry will submit the application to the government for approval, and only upon government approval can the license be issued. The entire process, from preparation to obtaining the license, typically takes 12 to 18 months, sometimes even longer.

It is noteworthy that during the approval process, the Vietnamese government not only focuses on meeting hard conditions but also considers soft factors. For instance, proposed educational projects must align with national education development plans and social needs. The government encourages the introduction of advanced international educational concepts and methods but also requires curriculum design to consider Vietnam’s cultural characteristics and development needs. Higher education institutions must closely integrate with local industry demands to ensure graduates’ employment prospects. Additionally, the government encourages new higher education institutions to establish partnerships with international universities to enhance educational quality and internationalization.

For other types of educational institutions, while specific requirements may vary, the overall principles are similar. For instance, international schools need to obtain recognition from the educational authorities of their country of origin, in addition to meeting general educational institution requirements. Vocational training institutions need to establish close cooperation with local enterprises to ensure that training content meets market demands. Language training centers have strict requirements for teacher qualifications, and foreign teachers need relevant teaching qualifications. Even in the relatively emerging field of online education, while policies are relatively relaxed, online courses involving degree education still require the appropriate licenses.

For foreign students, some additional requirements and restrictions need special attention. For instance, certain educational fields require a particular format, such as specific educational stages. In most cases, there are strict limits on the proportion of foreign teachers, which requires investors to have a long-term plan for local teacher development. Educational content must not violate Vietnam’s cultural traditions and values, requiring investors to have a deep understanding of Vietnamese culture. Meanwhile, the government encourages the introduction of advanced educational technology and management experience, which can be an advantage for foreign institutions.

Despite the high entry barrier into Vietnam’s education market, its enormous development potential continues to attract numerous investors. The Vietnamese middle class’s demand for quality education continues to grow, and the government actively encourages private and foreign participation in education, especially in higher education and vocational education. With Vietnam’s active integration into the global economy, the demand for internationalized education is also increasing. Educational technology has promising application prospects in Vietnam, providing opportunities for foreign educational institutions with technological advantages. Additionally, Vietnam’s advantageous geographical location can serve as a strategic base for entering the entire Southeast Asian education market.

Opportunities and challenges coexist. Educational policies may adjust at any time, requiring investors to closely monitor and respond promptly. Excellent educational talent is relatively scarce in Vietnam, and recruiting and retaining talent is a significant challenge. Educational concepts and methods need to adapt to the Vietnamese cultural context, which requires time and patience. With market opening, international educational brands are entering, creating fierce competition. Meanwhile, the government increasingly demands high educational quality, requiring continuous investment to maintain high standards. Entering Vietnam’s education market requires a long-term strategic vision and thorough preparation.

Special Operating Licenses in the Telecommunications and Internet Services Industry

Vietnam’s telecommunications and internet services industry is experiencing rapid development. With the fast growth of the digital economy, increased smartphone penetration, and strong promotion of digital transformation, Vietnam’s telecommunications and internet market showcases immense potential and vitality. Due to the industry’s involvement in national information security and public interest, the Vietnamese government has enforced strict regulation and access systems for telecommunications and internet services.

Vietnam’s telecommunications and internet service licenses are mainly divided into the following categories: Telecommunications Network Infrastructure License, Telecommunications Service License, Internet Service Provider License (ISP), Data Center Service License, and Value-Added Telecommunications Service License. Among these, the Telecommunications Network Infrastructure License has particularly stringent requirements, reflecting the Vietnamese government’s emphasis on telecommunications infrastructure construction.

For instance, applying for a Telecommunications Network Infrastructure License involves exceptionally strict conditions. Firstly, the capital requirement is quite high, with a minimum registered capital requirement of 5 trillion Vietnamese Dong (approximately 215 million USD) for national networks, and even higher for larger networks. This requirement underscores the Vietnamese government’s emphasis on telecommunications infrastructure investment and ensures operators have the capability for long-term stable operations.

Technical capability requirements are equally stringent. Applying enterprises need to have the technical capacity to build, operate, and maintain telecommunications networks, including having a sufficient number of qualified technical personnel. For national networks, a detailed network coverage plan, including phased construction targets and timelines, must be provided.

Network security is another critical consideration. Applying enterprises must formulate comprehensive network security plans, including data protection and emergency response plans. This involves not only technical security measures but also management systems and personnel training. Foreign enterprises may need to provide additional assurance of their reliability to alleviate government concerns about potential national security risks.

Service quality commitment is also a significant component of the license application. Applying enterprises need to provide detailed service quality assurance plans, including specific indicators such as network availability and customer service response times. The government will regularly evaluate these indicators, and failure to meet them may result in license revocation.

The application process for a Telecommunications Network Infrastructure License is complex and rigorous. Applicants need to prepare a range of materials for submission to the Ministry of Information and Communications, including the license application form, detailed feasibility study report, company charter, investor background and financial capability proof, technical plan, network security plan, service quality commitment, and a 5-10 year development plan. Preparing these materials often takes months, and the requirements are extremely strict. Any oversight might lead to rejection or refusal of the application.

After submission, the Ministry of Information and Communications will conduct a preliminary review lasting about 60 working days and organize an expert review meeting. Based on the review opinions, the applying enterprise may need to modify and improve the application materials. Subsequently, the Ministry will conduct a field inspection to ensure that the actual situation matches the application materials. Finally, the Ministry will submit the application to the government for approval, and only upon government approval can the license be issued. The entire process, from preparation to obtaining the license, typically takes 12 to 18 months, sometimes even longer.

For other types of telecommunications and internet service licenses, while specific requirements may vary, the overall principles are similar. For instance, the capital requirement for an Internet Service Provider (ISP) License is relatively lower, but the requirements for network security and content management are equally strict. The Value-Added Telecommunications Service License focuses more on service innovation and market demand; the application process is relatively simple but still requires proof of technical capability and security measures.

It is important to note that the Vietnamese government has special regulations regarding foreign participation in telecommunications and internet services. Currently, restrictions on foreign investment in providing telecommunications network infrastructure services are increasing, usually requiring cooperation with local enterprises, with foreign ownership not exceeding 49%. However, in the value-added telecommunications services field, foreign ownership is relatively unrestricted, and 100% foreign-owned enterprises can apply for related licenses.

Additionally, the Vietnamese government pays special attention to data localization and cross-border data flow. According to Vietnam’s cybersecurity law, certain types of data must be stored within Vietnam, which imposes additional requirements on multinational telecommunications and internet services. When obtaining licenses, enterprises need to clearly explain their data storage and processing strategies to ensure compliance with relevant regulations.

Despite the large number of entrants into Vietnam’s telecommunications and internet services market, its enormous growth potential continues to attract the masses. With a population of nearly 100 million, Vietnam has a high level of youth engagement and a rapid acceptance of new technologies and services. The government is actively promoting the “Digital Vietnam” strategy, providing a favorable policy environment for industry development. The gradual popularization of 5G networks, widespread application of the Internet of Things, and rapid growth of e-commerce are all creating huge potential market opportunities for telecommunications and internet services.

However, opportunities and challenges coexist. The existing market is fiercely competitive, with telecommunications companies like VNPT and Viettel expanding their market share, requiring new entrants to have clear market positioning and diversification strategies. While the policy environment is generally favorable, uncertainties remain, especially regarding regulations on network security and data privacy protection, which may continue to evolve. Additionally, infrastructure construction and network coverage in rural areas pose challenges to service development.

For foreign investors entering Vietnam’s telecommunications and internet services market, the following strategies are recommended:

• Conduct in-depth research on the Vietnamese market: Understand user needs, consumption habits, and market trends to find precise positioning.
• Seek reliable local partners: Especially in network infrastructure, collaboration with local enterprises can accelerate market entry and reduce policy risks.
• Focus on technological innovation: Look for breakthroughs in cutting-edge technologies such as 5G, cloud computing, and artificial intelligence to provide innovative services.
• Emphasize localization strategies: Including product localization, talent localization, and marketing localization to better adapt to the Vietnamese market.
• Establish good government relations: Proactively communicate with regulatory authorities, understand policy trends, and demonstrate the company’s contribution to Vietnam’s digital economy development.
• Pay attention to network security and data protection: Establish strict security systems to win the trust of users and the government.
• Focus on rural markets: Although rural infrastructure construction is urgent, it also harbors enormous growth potential.

Special Permits for Tourism and Hotel Industry

Vietnam’s tourism industry benefits from its rich natural resources, unique cultural heritage, and strong government support, making it one of the most popular tourist destinations in Southeast Asia. With the rise of the middle class and the continuous growth in international tourist numbers, Vietnam’s tourism and hotel market shows tremendous potential and vitality. However, as an important industry related to national image and economic development, the Vietnamese government has implemented strict regulations on the tourism and hotel industry. This guide will provide a comprehensive and detailed introduction to the application processes and requirements for special business licenses needed to conduct tourism and hotel-related businesses in Vietnam.

The main types of licenses in Vietnam’s tourism and hotel industry include travel agency operating licenses, hotel operating licenses, tour guide certificates, and tourist attraction operating licenses. Among these, high-star hotel operating licenses and international travel agency operating licenses have extremely strict application conditions, which best reflect the Vietnamese government’s high requirements for tourism service quality.

Taking the five-star hotel operating license as an example, the application conditions are exceptionally stringent. Firstly, location is crucial, requiring the hotel to be situated in an area with convenient transportation and beautiful surroundings. For beachfront resorts, a direct private access to the beach is necessary. Secondly, there are high requirements for hardware facilities. The number of rooms must reach at least 80, including various types of suites. Public areas need to include lounges, lobbies, restaurants, meeting rooms, fitness centers, swimming pools, and other facilities, with strict regulations on area and decoration standards.

Service standards are another key consideration factor. Five-star hotels need to provide 24-hour room service, concierge service, business centers, etc., and service personnel must be proficient in English, with some positions requiring knowledge of other foreign languages. Hotels also need to establish comprehensive quality management systems, including customer feedback and employee training programs. Additionally, safety management is of paramount importance, requiring advanced fire prevention systems, security mechanisms, and detailed emergency response plans.

For international travel agency operating licenses, the requirements are equally strict. Firstly, the registered capital requirement is high, typically not less than 500 billion Vietnamese dong (approximately $21.5 million USD). Secondly, an experienced management team is required, with the main person in charge having at least 4 years of work experience in the tourism industry. The agency also needs to have a fixed place of business with an area of not less than 100 square meters. In terms of business scope, it must be able to provide comprehensive tourism services, including itinerary design, transportation arrangements, accommodation bookings, and guide services.

The application process for these high-level licenses is complex and time-consuming. Taking the five-star hotel operating license as an example, applicants need to submit a series of materials to the Vietnamese Ministry of Culture, Sports and Tourism, including the license application form, detailed feasibility study report, hotel design drawings, list of facilities and equipment, service standard descriptions, management team resumes, financial capacity proof, and safety management plans. The preparation of these materials often takes several months and the requirements are extremely strict. Any oversight in details may result in the application being returned or rejected.

After submission, the Ministry of Culture, Sports and Tourism will conduct a preliminary review for about 45 working days and organize expert review meetings. Based on the review opinions, the applicant may need to modify and improve the application materials. Subsequently, an on-site inspection will be conducted to ensure that the actual situation matches the reported materials. Finally, the Ministry of Culture, Sports and Tourism will make the final decision. The entire process, from initial preparation to final license obtainment, usually takes 6 to 12 months, sometimes even longer.

It’s worth noting that even after obtaining the operating license, hotels and restaurants still need to undergo regular inspections and evaluations. The license is typically valid for 5 years and needs to be reapplied for upon expiration. Additionally, if significant adjustments or expansions of business scope are to be made, reapplication or license update is required.

For foreign investors, there are some additional requirements and restrictions to be particularly aware of. For example, in the travel agency sector, foreign shareholding must not exceed 49%. In the hotel industry, while 100% foreign ownership is allowed, there are restrictions in some special areas. Furthermore, foreign enterprises need to pay special attention to cultural issues to ensure that their business activities do not offend Vietnamese cultural taboos or political red lines.

Despite the large number of entrants into Vietnam’s tourism and hotel market, its huge development potential continues to attract investors. The Vietnamese government is actively promoting tourism to become a pillar industry of the national economy, including measures such as simplifying visa policies, improving infrastructure, and increasing promotion efforts. With the rise of Vietnam’s middle class and the improvement of international reputation, the demand for high-end hotels and boutique tourism products is constantly increasing. Moreover, niche markets such as business tourism, eco-tourism, and medical tourism are developing rapidly, providing lucrative opportunities for investors.

Market competition is fierce, especially in popular tourist cities like Hanoi, Ho Chi Minh City, and Da Nang, where the high-end hotel market is receiving increasing attention. This poses more stringent requirements for restaurant management. Labor costs continue to rise, and training and retaining excellent talent has become a major challenge. Furthermore, the impact of natural disasters (such as typhoons and floods) and public health events on the industry cannot be ignored.

For foreign investors entering Vietnam’s tourism and hotel market, the following strategies are recommended:

• Conduct in-depth market research: Understand the characteristics and needs of different regions, analyze market features, and find precise positioning.
• Focus on quality and uniqueness: In fierce competition, high quality and uniqueness are key to success.
• Emphasize sustainable development: The Vietnamese government is increasingly focusing on ecological protection; incorporating sustainable concepts into operations can win favor from both the government and consumers.
• Strengthen localization: Respect and integrate into local culture, cultivate local talent, which helps to enhance brand recognition.
• Focus on risk management: Establish sound risk assessment and response mechanisms, especially for natural disasters and public health events.
• Utilize technology: Fully leverage new technologies in marketing, customer service, and operational management to enhance competitiveness.
• Establish good government relations: Proactively communicate with local governments, understand policy trends, and participate in local community development.

Special Permits for Transportation and Logistics Industry

Vietnam’s transportation and logistics industry is in a golden period of rapid development. With the strong growth of Vietnam’s manufacturing industry and the rapid rise of e-commerce, the country’s transportation and logistics needs are experiencing explosive growth. The Vietnamese government also recognizes the importance of improving transportation and logistics systems in promoting economic development and is heavily investing in infrastructure construction while actively introducing advanced technologies. However, as an important industry related to economic lifelines and public safety, Vietnam has implemented strict regulatory and access systems for the transportation and logistics industry.

The main types of licenses in the transportation and logistics industry include road transport operating licenses, maritime operating licenses, air freight agency licenses, Vietnamese freight service licenses, and express delivery service licenses. Among these, the requirements for comprehensive logistics service licenses are extremely stringent, best reflecting the Vietnamese government’s expectations for improving the overall level of the logistics industry.

Taking the comprehensive logistics service enterprise license as an example, the application conditions are exceptionally strict. Firstly, the registered capital requirement is high, typically not less than 100 billion Vietnamese dong (approximately $4.3 million USD). This requirement aims to ensure that enterprises have sufficient financial strength to invest in necessary facilities and equipment and can undertake large-scale logistics projects.

Secondly, the technical and facility requirements are equally stringent. Enterprises are required to own or have long-term leases for sufficient transportation tools, including trucks and containers. At the same time, they need to have standard facilities equipped with modern logistics management systems. For cold chain logistics, the requirements are even more stringent, necessitating specialized refrigerated transport vehicles and temperature-controlled warehouses.

Talent requirements are another key factor. Enterprises must have experienced management teams and professional operators. Key management personnel usually need to have at least 5 years of work experience in the logistics industry and must hold relevant professional qualification certificates. For businesses involving the transportation of dangerous goods, specially trained and certified personnel are required.

Information systems are at the core of modern logistics. Applicant enterprises need to be equipped with advanced logistics information management systems capable of full-process tracking, real-time monitoring, and data analysis. At the same time, the system must have the ability to interface with relevant departments such as customs, ports, and airports.

Safety and quality management are equally important. Enterprises need to establish comprehensive safety management systems, including transportation safety, traffic safety, information security, and other aspects. Quality system management must comply with international standards, such as ISO 9001 certification. For logistics of special goods such as food and pharmaceuticals, corresponding qualifications and certifications are required.

The process of applying for a comprehensive logistics service license is complex and time-consuming. Applicants need to submit a series of materials to the Vietnamese Ministry of Transport, including the license application form, detailed business plan, company profile, financial statements, list of facilities and equipment, personnel qualification certificates, information system description, and safety and quality management systems. The preparation of these materials often takes several months and the requirements are extremely strict. Any oversight in details may result in the application being returned or rejected.

After submission, the Ministry of Transport will conduct a preliminary review for about 60 working days and organize expert review meetings. Based on the review opinions, the applicant enterprise may need to modify and improve the application materials. Subsequently, an on-site verification will be conducted to ensure that the actual situation matches the reported materials. Finally, the transportation department will make the final decision. The entire process, from initial preparation to final license obtainment, usually takes 6 to 12 months, sometimes even longer.

It’s worth noting that even after obtaining the operating license, logistics enterprises still need to undergo regular inspections and evaluations. The license is typically valid for 5 years and needs to be reapplied for upon expiration. Additionally, if the business scope is to be expanded or significant adjustments are to be made, reapplication or license update is required.

For foreign investors, there are some additional requirements and restrictions to be particularly aware of. For example, in certain logistics sub-sectors, foreign shareholding may be restricted. Especially for logistics businesses involving national security or important materials, restrictions may apply. Furthermore, foreign enterprises need to pay special attention to labor regulations, ensuring the employment of a sufficient proportion of Vietnamese employees and providing necessary training.

Despite the large number of entrants into Vietnam’s transportation and logistics market, its huge development potential continues to attract the masses. Vietnam is actively promoting the modernization of its logistics industry, including the construction of deep-water ports, airport upgrades, and improvement of highway networks. The development of logistics brings enormous opportunities for logistics and manufacturing industries. With the deepening of regional economic integration, Vietnam’s position as a logistics hub in Southeast Asia is becoming more prominent.

While existing infrastructure is improving, there is still a severe shortage, especially in rural and remote areas. Labor costs continue to rise, and hiring workers is increasingly becoming a bottleneck for industry development. Environmental protection requirements are urgent, posing new challenges to the operations of logistics enterprises. Moreover, market competition is fierce, with local logistics enterprises growing rapidly, requiring foreign enterprises to find precise positioning.

For foreign investors entering Vietnam’s transportation and logistics market, the following strategies are recommended:

• Focus on niche markets: Such as cold chain logistics, dangerous goods transportation, cross-border e-commerce logistics, and other high value-added areas.
• Invest in technological innovation: Utilize new technologies such as artificial intelligence and the Internet of Things to improve operational efficiency.
• Establish strategic partnerships: Develop deep cooperation relationships with local enterprises and e-commerce platforms.
• Emphasize talent cultivation: Establish localized talent training systems to improve employee skills and loyalty.
• Focus on sustainable development: Adopt environmentally friendly technologies and practices to enhance corporate social responsibility image.
• Flexible business models: Consider adopting asset-light investment models, reducing investments through resource sharing with local partners.
• Closely monitor policy changes: Logistics industry policies may be adjusted, requiring constant readiness to respond.

Special Business Licenses for the Construction and Real Estate Industry

Vietnam’s construction and real estate industry is experiencing unprecedented growth. With accelerating urbanization, the rapid rise of the middle class, and continuous inflow of foreign investment, Vietnam’s construction and real estate market shows enormous potential and vitality. As this industry directly impacts national economic development, urban planning, and public interest, the Vietnamese government has implemented strict regulations and entry requirements for the construction and real estate sector.

The main types of licenses in Vietnam’s construction and real estate industry include construction contractor licenses, real estate development licenses, real estate brokerage licenses, and architectural design licenses. Among these, the real estate development license has particularly stringent requirements, reflecting the Vietnamese government’s commitment to promoting healthy industry development and protecting consumer rights.

Taking the real estate development license as an example, the application conditions are exceptionally strict. Firstly, there is a high registered capital requirement, typically no less than 200 billion Vietnamese dong (approximately $8.6 million USD). This requirement aims to ensure sufficient financial strength to complete projects and prevent issues such as unfinished buildings. For large-scale projects, capital requirements may be even higher.

Secondly, proof of land use rights is crucial. Applicant companies must prove they have legal rights to use the project land. This often involves complex land compensation, resettlement, and relocation procedures, especially in urban expansion areas, which can be time-consuming and challenging.

Project planning and design is another key factor. Applicant companies need to provide detailed project plans, including architectural designs, infrastructure planning, and environmental impact assessments. These plans must comply with local urban development master plans and be approved by relevant departments. For large-scale projects, public consultation may also be required.

Technical capability and experience requirements are equally stringent. Companies must demonstrate their ability to manage large real estate projects, usually by providing evidence of past successful projects. Key management personnel must possess professional qualifications and extensive industry experience. For projects involving special buildings (such as high-rise buildings or large public facilities), technical requirements are even higher.

Financial viability is another important aspect. Applicant companies need to provide detailed financial plans, including funding sources, investment return analyses, and cash flow projections. Government financial authorities carefully assess the project’s financial viability to ensure the company has the capacity to complete the project.

Environmental protection and social responsibility are increasingly emphasized aspects. Projects must meet environmental standards, including wastewater treatment, air quality control, and green space ratios. For large-scale projects that may impact local communities, social impact assessment reports and corresponding mitigation measures are required.

The process of applying for a real estate development license is complex and time-consuming. Applicants need to submit a series of documents to local planning and investment departments, including the license application form, detailed project proposal, proof of land use rights, architectural design drawings, environmental impact assessment report, financial feasibility report, and company qualification certificates. Preparing these materials often takes several months or even longer, with extremely strict requirements. Any oversight in details could lead to the application being returned or rejected.

After submission, relevant departments will conduct an initial review for about 90 working days and organize expert review panels. Based on the review opinions, applicant companies may need to revise and improve their application materials multiple times. Subsequently, on-site inspections are conducted to ensure actual conditions match the reported materials. Finally, a final decision is made. The entire process, from preparation to final approval, typically takes 12 to 18 months, and for large complex projects, it may take even longer.

It’s worth noting that even after obtaining a development license, real estate developers still need to obtain other relevant permits and approvals at various stages of project implementation, such as construction permits, fire safety permits, and environmental acceptance. After project completion, final acceptance is required before the property can be delivered for use.

Foreign investors need to pay special attention to some additional requirements and restrictions. For instance, real estate projects in certain strategic locations or sensitive areas may have restrictions on foreign participation. Cooperation with local enterprises is often encouraged. Additionally, foreign companies need to be particularly mindful of land use rights regulations, as Vietnamese law strictly limits land ownership by foreign entities and individuals.

In the construction contracting field, foreign contractors wishing to undertake projects in Vietnam need to obtain a construction contractor license and meet some special requirements. For example, they must collaborate with qualified Vietnamese contractors and may need to transfer technology or train local employees in certain cases. For particularly large or technically complex projects, there may be more flexible policies, but these are still evaluated on a case-by-case basis.

Despite the high barriers to entry into Vietnam’s construction and real estate market, its enormous development potential continues to attract attention. Vietnam is undergoing rapid urbanization, with sustained demand for housing, office buildings, commercial spaces, and infrastructure. Many large-scale infrastructure projects are being promoted, such as new airports, metro systems, and highway networks, bringing huge opportunities for the construction industry. Meanwhile, as living standards improve, demand for high-quality housing, green buildings, and smart homes is also increasing.

Issues such as difficulty in acquiring land, complex procedures, and limited financing channels still plague many investors. Market competition is intensifying, especially in some overheated urban areas. Rising labor costs and solving labor issues also put pressure on the construction industry. Furthermore, strict environmental requirements have set higher standards for building materials and construction techniques.

For foreign investors entering Vietnam’s construction and real estate market, the following strategies are recommended:

• Conduct in-depth market research: Thoroughly understand different regions, analyze market characteristics and demands, and find suitable positioning.
• Seek reliable local partners: Cooperating with companies familiar with local conditions can effectively address complex approval procedures and cultural differences.
• Focus on sustainable development: Adopt green building technologies and environmentally friendly materials, which not only align with policy directions but are also increasingly favored by consumers.
• Pay attention to emerging markets: Besides traditional hotspots, focus on development opportunities in second and third-tier cities.
• Innovate financing models: Consider viable financing channels, such as partnerships or REITs, to address funding pressures.
• Invest in digital transformation: Utilize BIM technology, artificial intelligence, etc., to improve design and construction efficiency.
• Emphasize risk management: Establish a comprehensive risk assessment and control system, especially for market fluctuations and policy changes.
• Actively participate in community development: Enhance brand image and social recognition by participating in local community building.

Although entry barriers are high and regulations are strict, this market offers enormous development opportunities for companies with strength, vision, and the ability to provide high-quality products and services. Only by being well-prepared and formulating long-term development strategies can enterprises win a place in this vibrant market.

Special Business Licenses for the Food and Beverage Production Industry

Vietnam’s food and beverage production industry is in a golden period of rapid development. Vietnamese consumers have an urgent and growing demand for high-quality, domestically produced food and beverages. At the same time, Vietnam’s rich agricultural resources provide an excellent raw material base for the food and beverage production industry. However, as a crucial industry directly related to public health and safety, the Vietnamese government has implemented strict regulatory and entry systems for food and beverage production.

The main types of licenses in Vietnam’s food and beverage production industry include food production licenses, food safety certificates, beverage production licenses, and special-purpose food production licenses (such as infant formula). The food production license is the most fundamental and critical type of license, applicable to most food and beverage production enterprises.

Taking the food production license as an example, the application conditions are exceptionally strict. Firstly, there are high requirements for production facilities. Companies must have production premises that meet food safety standards, including appropriate plant layout, food hygiene facilities, temperature control systems, etc. Production equipment must be of qualified quality and able to ensure hygiene and safety during the production process. For certain special foods (such as dairy products, meat products), dedicated production lines and testing equipment are required.

Secondly, there are strict requirements for personnel qualifications. Companies must have quality control personnel and food safety management personnel with professional backgrounds and qualifications. Key position personnel usually need to undergo government-approved food safety training and obtain corresponding certificates. For some special food productions, nutritionists or technical personnel in related fields may also be required.

The food safety management system is another critical factor. Companies must establish a comprehensive food safety management system, including raw material control, production process control, finished product inspection, and traceability systems. Companies are typically required to implement the HACCP (Hazard Analysis and Critical Control Points) system, and in some cases, may need to obtain international food safety management system certifications such as ISO 22000.

Companies need to demonstrate their ability to obtain safe and stable raw material supplies. This includes establishing a strict supplier management system for raw materials, conducting regular testing of raw materials, and maintaining detailed records of raw material purchases. Companies using imported raw materials also need to provide international certifications or quarantine certificates for the materials.

Product standards and formulations are another important aspect. Companies need to develop detailed product standards for each product, including sensory indicators, physicochemical indicators, and microbiological indicators. Product formulations must comply with Vietnamese food safety regulations, with strict restrictions on the use of additives in particular. Some special foods (such as health foods, special dietary foods) may also require scientific evidence or clinical trial data.

The process of applying for a food production license is complex and time-consuming. Applicants need to submit a series of materials to the Vietnamese food safety authority, including the license application form, company qualification certificates, production facility list, equipment list, key personnel qualification certificates, food safety management system documents, product standards and formulations, sample test reports, etc. Preparing these materials often takes several months and the requirements are extremely strict. Any oversight in details could lead to the application being returned or rejected.

After submission, relevant departments will conduct an initial review for about 30-45 working days and organize expert review panels. Based on the review opinions, applicant companies may need to revise and improve their application materials. Subsequently, on-site inspections are conducted to check if the production meets the requirements. Finally, the food safety authority or authorized agency will make a final decision. The entire process, from preparation to final license acquisition, typically takes 6 to 12 months, sometimes even longer.

It’s worth noting that even after obtaining a production license, food and beverage production companies are still subject to regular inspections and supervision. Licenses are usually valid for 3 years, after which reapplication is required. Additionally, if a company wants to expand its production scope, change production location, or undergo major technical renovations, it also needs to reapply for or update the license.

Foreign investors need to pay special attention to some additional requirements and restrictions. For example, certain food sectors considered strategic or important (such as rice processing, production of certain traditional foods) may have restrictions on foreign investment. Foreign companies also need to be particularly mindful of localizing product formulations and labels to ensure compliance with Vietnamese cultural customs and regulatory requirements.

Despite the high barriers to entry into Vietnam’s food and beverage production market, its enormous development potential continues to attract attention. Vietnam has a population of 97 million, with a high proportion of young people and continuously increasing consumer power. As living standards improve, consumers are increasingly concerned about food safety and nutritional health, providing a huge market space for high-quality foods and innovative products.

The existing market urgently desires localization, and domestic brands are rapidly emerging, requiring foreign companies to find precise market positioning. The stability and quality control of raw material supply is a long-term challenge, especially for products requiring large amounts of local raw materials. Food trends change rapidly, requiring companies to have the ability to quickly develop and promote new products. Moreover, food safety issues have always been a focus of public attention, and any quality problems can severely damage a brand.

For foreign investors entering Vietnam’s food and beverage production market, the following strategies are recommended:

• Focus on product innovation: Develop innovative products that meet market demands by combining local Vietnamese tastes with international trends.
• Establish reliable supply chains: Build long-term partnerships with local agricultural producers to ensure raw material quality and supply stability.
• Invest in advanced production technology: Introduce internationally advanced production and quality control technologies to improve production efficiency and product quality.
• Emphasize brand building: Build brand and consumer trust through multi-channel marketing.
• Focus on health and sustainability: Develop product lines that align with emerging consumer trends such as health, organic, and environmentally friendly products.
• Strengthen localized R&D: Quickly establish localized R&D teams to respond to changing market demands.
• Strict quality control: Establish internal quality standards that exceed regulatory requirements to win consumer trust.
• Explore diverse sales channels: In addition to traditional channels, actively explore emerging sales channels such as e-commerce and social media.

Special Business Licenses for the Chemical and Pharmaceutical Manufacturing Industry

The chemical and pharmaceutical manufacturing industry in Vietnam is at a critical juncture of rapid development and transformation. With the rising demand for healthcare and accelerating industrialization, Vietnam is experiencing strong growth in the demand for chemicals and pharmaceuticals. As this industry directly impacts public health, environmental safety, and national strategic development, the Vietnamese government has implemented extremely strict regulatory and entry systems for chemical and pharmaceutical production.

In Vietnam, the main types of licenses for chemical and pharmaceutical production include chemical production licenses, pharmaceutical production licenses (GMP certificates), drug registration certificates, and special chemical production licenses (such as for pesticides, industrial explosives, etc.). Among these, the pharmaceutical production license (GMP certificate) has particularly stringent requirements, reflecting the Vietnamese government’s high emphasis on drug quality and safety. Therefore, we will use the pharmaceutical production license (GMP certificate) as an example to detail the application conditions and process.

The conditions for applying for a pharmaceutical production license (GMP certificate) are exceptionally strict, covering multiple aspects including production facilities, equipment, quality management systems, personnel qualifications, document management systems, product registration, supply chain management, environmental protection, and occupational safety.

Regarding production facilities, companies must have manufacturing facilities that comply with WHO-GMP (Good Manufacturing Practice for pharmaceutical production) or EU GMP standards. This includes clean rooms, air conditioning systems, water treatment systems, compressed air systems, etc. Different types of pharmaceuticals (such as solid dosage forms, injectables, biological products, etc.) have different cleanliness requirements. For example, sterile product manufacturing areas typically need to achieve ISO 5 (Class 100) cleanliness levels.

Equipment requirements are equally stringent. All production equipment must meet the special requirements for pharmaceutical manufacturing, including material, cleanliness, and calibration aspects. Critical equipment such as mixers, granulators, tablet presses, and filling lines must have qualification and validation documents. Automated control systems need to comply with electronic record management standards such as 21 CFR Part 11. These requirements aim to ensure the controllability of the production process and consistency of product quality.

The quality management system is the core of pharmaceutical production. Companies must establish comprehensive quality management systems, including Quality Assurance (QA) and Quality Control (QC) systems. This includes raw material and finished product testing, in-process controls, stability studies, validation management, change control, deviation management, product recall systems, etc. It requires the implementation of Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP), and Good Storage and Distribution Practice (GSP). The purpose of this system is to ensure that the product meets predetermined quality standards at every stage.

Personnel qualifications are a key parameter in ensuring drug quality. Key personnel such as production managers, quality managers, and qualified persons must have pharmaceutical or related professional backgrounds and many years of relevant work experience. Qualified persons are required to have a master’s degree in pharmacy or related fields. All production and quality control personnel must receive systematic GMP training. These requirements aim to ensure sufficient professional knowledge and experience to manage the complex pharmaceutical production process.

The document management system is an important component of GMP. Companies need to establish a comprehensive document management system, including quality manuals, Standard Operating Procedures (SOPs), process procedures, testing methods, batch records, etc. All documents must comply with GMP requirements, such as version control and review approval processes. A good document management system can ensure the traceability and consistency of the production process.

Product registration is a crucial step before a drug can be marketed. Each final pharmaceutical product needs to apply for a separate registration certificate. This requires providing comprehensive product information, including pharmaceutical research data, pharmacological and toxicological study data, clinical trial data, etc. For generic drugs, complete product information is usually required, including pharmaceutical research data, pharmacological and toxicological study data, and clinical trial data. Bioequivalence study data needs to be provided. The purpose of product registration is to demonstrate the safety, efficacy, and quality of the drug.

Supply chain management is key to ensuring drug quality. Companies must establish strict supplier management systems to ensure the quality of all raw materials, excipients, and packaging materials. On-site audits are required for key raw material suppliers. This process aims to control drug quality from the source.

Environmental protection and occupational safety reflect corporate social responsibility. Companies must comply with strict environmental protection standards, including wastewater treatment, gas emissions, solid waste treatment, etc. At the same time, comprehensive occupational health and safety measures need to be established. This is not only a legal requirement but also the foundation for sustainable business development.

The process of applying for a pharmaceutical license (GMP) is complex and lengthy. A series of materials need to be submitted to the Vietnam Drug Administration, including the license application form, proof of corporate legal status, detailed facility floor plans and equipment lists, key personnel resumes and qualification certificates, quality management system documents (including quality manual, main SOPs, etc.), GMP self-inspection report, process validation report, environmental impact assessment report, occupational safety and health management plan, etc. The preparation of these materials usually takes 6-12 months and the requirements are extremely strict. Any oversight in details may lead to the application being abandoned or rejected.

After submitting the application, the Drug Administration will first conduct a review for about 60 working days and organize an expert group for on-site inspection. The inspection usually lasts 3-5 days, covering all GMP-related aspects. Based on the inspection results, companies may need to make corrections and undergo re-inspection. The entire process from starting preparation to finally obtaining the GMP certificate usually takes 18-24 months, sometimes even longer. This in-depth process reflects the Vietnamese government’s strict control over pharmaceutical production.

It’s worth noting that GMP certificates are usually valid for 3 years and need to be reapplied for. During the validity period of the certificate, companies are subject to regular and unannounced inspections. If a company wants to expand its production scope, replace key equipment, or undertake major technical renovations, it also needs to reapply for or update the GMP certificate. This ongoing supervision ensures long-term quality control in drug production.

For chemical production, although the overall requirements may not be as strict as pharmaceutical production, control in certain areas (such as hazardous chemicals, pesticides, etc.) may be more stringent. For example, in addition to general production facility and safety requirements, hazardous chemical production licenses also require detailed emergency plans, specialized storage facilities, professional transportation, etc. Pesticide production licenses require toxicological evaluation plans, environmental impact assessment reports, field trial reports, etc. There are extremely strict requirements for pollution control and emission treatment in the production process. Special chemicals (such as industrial explosives) require approval from the Ministry of Health and infectious diseases control authorities in addition to licenses from the Ministry of Industry and Trade. There are special requirements for company background, personnel qualifications, quarantine measures, etc.

For foreign investors, some additional requirements and restrictions need special attention. Certain chemical and pharmaceutical fields considered sensitive or strategic may have entry restrictions or shareholding limitations for foreign capital. While the Vietnamese government encourages the introduction of advanced technologies, in some fields, foreign companies may be required to conduct appropriate technology transfers. Key management positions may be required to be held by Vietnamese citizens, or a certain proportion of local raw materials may be required to be used. For sensitive information such as clinical trial data and production data, local data storage in Vietnam may be required. These requirements aim to protect national interests and promote local industry development.

Although the barriers to enter the Vietnamese chemical and pharmaceutical production market are high, its enormous development potential still attracts a large number of investors. The Vietnamese pharmaceutical market is growing at a rate of 10-15% annually and is also a key area for government development in the chemical industry. With population growth, accelerating aging, and increasing healthcare awareness, the demand for high-quality drugs and innovative pharmaceuticals will continue to grow. At the same time, Vietnam is accelerating its industrialization process, and the demand for various chemicals is also growing rapidly. This provides huge market opportunities for companies with strong capabilities.

In the generic drug field, the dependence on imported active pharmaceutical ingredients leads to difficulties in cost control. Intellectual property protection is about to be strengthened. Urgent environmental requirements bring enormous pressure to chemical production companies. The shortage of skilled technical talents is a long-term challenge faced by the industry. These factors all need to be carefully considered and addressed when entering the market.

For foreign investors entering the Vietnamese chemical and pharmaceutical production market, a series of strategies are recommended. First, focus on innovation, invest in R&D for innovative drugs or high value-added specialty chemicals, with a focus on areas with severe homogenization. Emphasize compliance, establish industry-standard quality management systems and environmental measures, and make compliance a core competitiveness. In addition, it’s important to establish local R&D centers to develop products that meet the needs of the Vietnamese market. Establishing deep cooperation with local enterprises, universities, or research institutions can accelerate market entry and technological innovation.

Talent cultivation is another key strategy. Companies should establish systematic talent training systems, especially for cultivating high-quality management talents that meet international standards. Consider extending to upstream active pharmaceutical ingredients or key intermediates to improve supply chain stability and cost control capabilities. Utilizing technologies such as artificial intelligence and big data to enhance R&D efficiency and production management, and achieve digital transformation is also a future development trend. Finally, maintaining good communication with industry associations and regulatory authorities and actively participating in the formulation of industry standards can help companies better respond to policy changes.

The Vietnamese chemical and pharmaceutical production market has huge potential. Although the entry barriers are high and regulations are strict, it provides enormous development space for companies with strength, innovation capabilities, and the ability to provide high-quality products.

Special Business Licenses for the Energy and Mineral Development Industry

The energy and mineral development industry in Vietnam is at a crucial turning point. Vietnam’s energy demand is rapidly climbing, while its rich mineral resources have attracted the attention of many consumers. However, due to the strategic importance of energy security and natural resources, the Vietnamese government has implemented strict regulatory and entry systems in this field.

In Vietnam, the main types of licenses for energy and mineral development include oil and gas exploration and development licenses, coal mining licenses, renewable energy project licenses, power generation licenses, and various mineral exploration and mining licenses. Among these, oil and gas exploration and development licenses have extremely stringent requirements, best reflecting the Vietnamese government’s control over strategic resources.

Taking the oil and gas exploration and development license as an example, the application conditions are exceptionally strict. Firstly, the capital requirements are extremely high, usually requiring investment commitments of hundreds of millions of dollars. This includes not only investments in the exploration phase but also possible development phase investments. Applicant companies need to provide detailed proof of financial capability, including bank guarantees or parent company guarantees.

Technical capability is another key factor. Applicant companies must demonstrate their technical strength to conduct complex geological exploration and oil extraction. This usually requires providing past project experience, especially successful cases under similar geological conditions. Companies also need to detail the proposed exploration and extraction technologies to be used, and how to address potential technical challenges.

Environmental protection and safety management are important components of the license. Companies need to submit comprehensive environmental impact assessment reports, detailing the potential impacts of the project on marine ecology, coastal areas, and fisheries, as well as corresponding mitigation measures. At the same time, detailed safety management plans need to be formulated, including prevention and emergency measures for sudden events such as oil spills, fires, and explosions.

Localization commitments are also a key aspect emphasized by the Vietnamese government. Applicant companies need to commit to using a certain proportion of Vietnamese labor and local suppliers. This includes formulating detailed talent cultivation plans and local supply chain development plans. For key management positions, the government may require gradual localization.

The process of applying for an oil and gas exploration and development license is complex and lengthy. Applicants need to prepare a series of materials for the Vietnam Oil and Gas Group (PetroVietnam), including the license application form, detailed exploration and development plans, proof of financial capability, technical capability statements, environmental impact assessment reports, safety management plans, localization commitments, etc. The preparation of these materials usually takes 6-12 months and the requirements are very strict.

After submitting the application, PetroVietnam will conduct an initial review and organize expert review meetings. The review process may last several months, during which multiple rounds of supplementary materials and defense may be required. If the initial review is passed, negotiations with the government are still needed to reach an agreement on specific contract terms. Finally, the project needs to be approved by the Prime Minister. The entire process from starting preparation to finally obtaining the license usually takes 2-3 years, sometimes even longer.

For other energy and mineral fields, such as coal mining and renewable energy projects, although specific requirements may differ, the overall principles are similar. For example, coal mining license applications need to pay special attention to mine safety and environmental restoration plans. Renewable energy projects (such as wind power and solar energy) need to provide detailed resource assessment reports and grid connection plans.

The Vietnamese government is actively promoting energy structure transformation and encouraging the development of renewable energy. Therefore, investments in fields such as wind and solar energy may enjoy some preferential policies, such as tax reductions and land use rights preferences. However, these projects still need to go through strict approval procedures, especially in terms of environmental impact and grid connection.

For mineral development, the Vietnamese government is increasingly inclined towards capacity control. The approval of new mineral exploration and mining licenses has become stricter, especially for strategic minerals such as rare earths. Applicant companies not only need to prove their technical and financial capabilities but also need to propose detailed mineral processing and value-adding plans, as well as environmental restoration plans.

For foreign investors, some additional requirements and restrictions need special attention. For example, in some energy and mineral fields, cooperation with Vietnamese state-owned enterprises may be required. Foreign shareholding ratios may be restricted, especially in strategic fields. In addition, technology transfer and stricter localization requirements may be more stringent than in other industries.

Although the barriers to entering the Vietnamese energy and mineral development market are high, its huge development potential still attracts a large number of investors. Vietnam is facing endless energy challenges, with electricity demand expected to grow at a rate of about 8% annually over the next decade. This creates enormous opportunities for power generation and new energy development. At the same time, Vietnam’s rich mineral resources, especially strategic minerals such as rare earths, tungsten, and titanium, also provide attractiveness for mining investors.

However, factors such as energy price fluctuations, increasing environmental pressure, and insufficient infrastructure all pose challenges to industry development. In addition, issues such as complex geological conditions, continuous shortage of technical talents, and financing difficulties also need to be seriously considered by investors.

For foreign investors entering the Vietnamese energy and mineral development market, the following strategies are recommended:

• In-depth market research: Comprehensively understand Vietnam’s energy policies and mineral resource allocation to seek suitable investment directions.
• Focus on technological innovation: Introduce advanced exploration and extraction technologies to improve resource utilization efficiency and environmental protection levels.
• Strengthen local cooperation: Establish strategic cooperative relationships with Vietnamese state-owned enterprises or capable local companies to jointly address market challenges.
• Emphasize sustainable development: Incorporate environmental protection and community development into corporate strategy to win government and public support.
• Flexible business models: Consider adopting various investment models such as BOT and PPP to reduce risks and enhance project attractiveness.
• Localization of talent: Establish long-term local talent cultivation plans to gradually achieve localization of the management team.
• Pay attention to policy changes: Maintain close communication with regulatory authorities and industry associations to respond quickly to policy adjustments.

The energy and mineral development market in Vietnam has huge potential. Although entering the market is challenging, for companies with strength, innovation capabilities, and the ability to provide high-quality products and services, it offers enormous development opportunities.