Police seize a batch of smuggled e-cigarettes in Nghệ An Province. — VNA/VVNS Photo

HÀ NỘI — Việt Nam is moving to ban all investment and business activities related to electronic cigarettes and heated tobacco products in a bid to protect public health and tighten control over emerging addictive substances.

The proposal was discussed at the 50th session of the National Assembly Standing Committee on Friday, as lawmakers reviewed the revised Investment Law – a key piece of legislation to streamline investment procedures and update the list of conditional and prohibited business sectors.

Presenting the draft, Deputy Minister of Finance, Nguyễn Thị Bích Ngọc, said the new law would simplify project approval requirements and narrow the scope of projects requiring prior investment consent.

Under the proposal, only projects involving sensitive sectors, such as seaports, airports, telecommunications, publishing and journalism, or those with significant environmental impact or national security implications, would require approval.

A notable addition to the draft is the ban on investment and business in electronic cigarettes and heated tobacco, in line with Resolution 173 adopted by the National Assembly in November 2024.

The resolution calls for a nationwide prohibition on the production, trade, import, storage, transportation and use of these products, as well as other substances that cause addiction or harm to human health.

The draft law also proposes removing 21 business sectors currently classified as conditional, including accounting and tax service activities, which no longer meet the criteria set out in Article 7 of the existing Investment Law.

The changes reflect a shift from 'pre-licensing control' to a 'post-check' mechanism, intended to make market access easier while maintaining effective oversight.

Phan Văn Mãi, Chairman of the National Assembly’s Economic and Financial Committee, welcomed the reform efforts but urged further streamlining of business conditions.

He stressed that only those justified by constitutional grounds, such as national defence, security, public order, morality and community health, should remain. He also proposed the development of clear metrics for assessing regulatory quality and transparency on compliance costs.

Mãi recommended the Government consider limited exceptions for production solely intended for export or for specialised purposes such as scientific research, testing, medical use or national defence.

In response, Deputy Minister of Finance Ngọc said his ministry would coordinate with the Ministry of Health and other relevant agencies to review the proposal carefully, ensuring it is practical and effective before submission to the Government.

Concluding the session, National Assembly Vice Chairman Vũ Hồng Thanh said the revised law must remove regulatory bottlenecks, provide a stable and consistent legal framework and promote decentralisation and administrative reform.

He emphasised that the law must align with the Constitution, other related legislation and Việt Nam’s international commitments.

If approved, the measure would represent Việt Nam’s strongest action to date against new forms of tobacco, reinforcing its stance on public health protection amid a global surge in vaping and heated tobacco use. — VNS