Foreign companies ditch rules to engage in booming businesses

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Foreign national companies deviate from stipulated rules by engaging in investment areas which are not allowed for foreign investors based on the investment regulation.
According to sources, the number of foreign companies which are engaging in investment areas only reserved for local investors has been noted to be increasing from time to time, as various fields of business continue to boom in the country.
As sources who prefer to stay anonymous inform capital, the investment commission has also been made aware of the issue yet there has not been any legal action taken by the commission or other respective government authorities.
According to sources, foreigners from mainly Middle-East, Asia and European countries are said to be engaged in investment areas majorly in; Brokerage services, private employment agency services, producing bakery products and pastries for domestic market, hotel, lodge, resort, motel, guesthouse, and pension services, excluding those that are star-designated; Restaurant, tearoom, coffee shops, bars, and nightclubs.
As per regulation, investment areas not listed under Articles 3, 4 and 5 in the regulation which are Investment Areas Reserved for Joint Investment with the Government Investment Areas, Investment Areas Reserved for Domestic Investors, Reserved for Joint Investment with Domestic and Foreign Investors is said to be open to foreign investors which is subject to applicable by the law.
The investment regulation No. 474/2020 reserves 32 ‘Investment Areas’ only for Domestic Investors including banking, insurance and microfinance businesses, excluding capital goods finance business, Transmission and distribution of electrical energy through integrated national grid system, Primary and middle level health services, Wholesale trade, petroleum products, Retail trade, Export trade of raw coffee, khat, oil seeds, pulses, minerals, hides and skins, products of natural forest, chicken, and livestock including pack animals bought on the market; Construction and drilling services below Grade I; Hotel, lodge, resort, motel, guesthouse, and pension services, excluding those that are star-designated; Restaurant, tearoom, coffee shops, bars, nightclubs, and catering services, excluding star-designated national cuisine restaurant service, Travel agency, travel ticket sales and trade auxiliary services; Tour operation; Operating lease of equipment’s, machineries and vehicles, excluding industry-specific heavy equipment’s, machineries and specialized vehicles, Producing bakery products and pastries for domestic market, Barbershop and beauty salon services, smithery, and tailoring except by garment factories, Quarrying, Lottery and sports betting, Laundry services, Translation and secretarial services, Security services, Brokerage services, Private employment agency services.
Capital’s effort to contact investment commission authorities was not successful.