Vietnam’s 2020 Law on Investment became effective in January 2021, bringing significant improvements relating to investment incentives, market entry and business conditions, such as requirements on starting a business in Vietnam. The USAID Linkages for Small and Medium Enterprises (LinkSME) project is providing technical assistance to the Government of Vietnam to guide the implementation of the new law. On March 26, the Government of Vietnam issued implementation guidelines (Decree 31) that incorporate the recommendations from the LinkSME activity, including listing all restricted and conditional business sectors, and streamlining the investment appraisal process.
So what? USAID is helping improve the business environment in Vietnam through increased transparency and more efficient policy implementation, which will save time and costs to investors, make Vietnam a more attractive destination for foreign direct investment, and accelerate its path to sustainability.
