I. Legal basis

• Investment Law 2025

The Investment Law 2025 shall take effect on March 1, 2026, except for certain provisions which shall take effect on July 1, 2026. The Investment Law 2025 represents a significant step forward in completing the legal framework for investment, with a clear orientation aimed at establishing a more open and transparent environment for investors.

II. Clarify the scope of the project for Investment Policy approval

Article 24 of the Investment Law 2025 specifically lists 20 types of projects that are required to undergo the investment policy approval procedure as a basis for implementation.

Accordingly, for investment projects involving infrastructure development in certain critical and sensitive sectors such as seaports, airports, telecommunications, publishing, and journalism; projects proposed to utilize land or maritime areas; projects with significant environmental impacts or with potential for serious environmental consequences; or projects implemented in areas affecting national defense and security, the investment policy approval procedure must be carried out.

Previously, the Investment Law 2020 did not directly specify which groups of projects were required to obtain investment policy approval, but only regulated this according to the authority of each agency. The new approach provides clearer, more consistent, and more readily applicable provisions.

III. Promote the decentralization of authority for Investment Policy approval

Regarding the authority for investment policy approval, Article 25 of the Investment Law 2025 provides:

• The National Assembly shall approve the investment policy only for projects requiring the application of special mechanisms and policies.
• The Prime Minister shall approve the investment policy for eight groups of projects.
• The Chairperson of the Provincial People’s Committee (replacing the former Provincial People’s Committee) shall approve the investment policy for thirteen groups of projects.

Thus, the new law has strengthened the decentralization of investment policy approval authority from the National Assembly to the Prime Minister, and from the Prime Minister to the Chairperson of the Provincial People’s Committee, with the aim of reforming administrative procedures and expediting the investment policy approval process.

IV. Expand the application of special investment procedures

Pursuant to Article 28 of the Investment Law 2025, investors shall have the right to choose to register their investment under the special investment procedure for projects in industrial zones, export processing zones, high-tech zones, concentrated digital technology zones, free trade zones, international financial centers, and functional areas within economic zones, except for projects that are required to obtain investment policy approval in accordance with Government regulations.

Projects registered under the special investment procedure are not required to undergo the investment policy approval procedure, technology appraisal, preparation of environmental impact assessment reports, preparation of detailed planning, issuance of construction permits, or other procedures for approval, consent, or authorization in the fields of construction and fire prevention and fighting. Investors are only required to commit to meeting applicable standards and regulations and to submit the project proposal. The competent authority shall conduct post-approval inspection instead of pre-approval control.

Accordingly, compared with the Investment Law 2020, the new law further expands the scope of projects eligible for the ‘green channel’ mechanism, thereby providing maximum administrative procedure facilitation within these zones.

V. Amend and supplement provisions on Investment Incentives and support policies

1. Sectors and industries eligible for Investment Incentives

The latest Investment Law 2025, No. 143/2025/QH15, has amended and supplemented the provisions on sectors and industries eligible for investment incentives in Articles 15 and 16, in the direction of defining such sectors and industries as those prioritized for investment attraction to promote the development of science and technology, innovation, digital transformation, digital technology industries, and the semiconductor industry; the development of green economy, circular economy, sharing economy, digital economy, and new economic models; the development of industry clusters and value chains, attracting investment in modern management with high added value, widespread impact, and integration into global production and supply chains; the development of renewable energy, new energy, and clean energy; ensuring national energy security; and the like. These provisions are intended to align with the orientation of drafting a law that “stipulates framework issues and matters of principle under the authority of the National Assembly,” while enabling the Government to proactively determine sectors and industries eligible for investment incentives in accordance with each period.

2. Special Investment Incentives and Support

The new law has amended and supplemented the provisions on special investment incentives and support in Article 17 of the Investment Law, assigning the Government to provide detailed regulations on the investment capital scale and disbursement schedule for projects eligible for special investment incentives, in a manner appropriate to the specific characteristics of each sector and field.

VI. Foreign investors are not required to have a project prior to establishing an enterprise

Clause 2, Article 19 of the Investment Law 2025 allows foreign investors to establish an enterprise without having a prior investment project, provided that they meet the market access conditions. Compared with the Investment Law 2020 (which required having a project before establishing an enterprise), this represents a significant change, creating a more open investment environment, promoting FDI attraction, and ensuring equality between domestic and foreign investors.

VII. Conclusion

It can be observed that the 2025 Law on Investment introduces substantial reforms aimed at enhancing transparency, simplifying administrative procedures, and strengthening decentralization, thereby establishing a more open, flexible investment environment aligned with international practices. The clarification of the scope of projects subject to investment policy approval, the promotion of decentralized authority, the expansion of the “green channel” mechanism through special investment procedures, as well as the reform of investment incentive policies, have significantly contributed to reducing market entry barriers and compliance costs for investors.

In particular, the provision allowing foreign investors to establish enterprises without a prior investment project represents a significant shift in regulatory approach, moving from ex-ante control to ex-post supervision, while enhancing the competitiveness of Vietnam’s investment environment in attracting high-quality capital inflows.

In this context, enterprises and investors should proactively update themselves on the new regulations, reassess their investment strategies, select appropriate investment models and locations, and effectively leverage incentive mechanisms and streamlined procedures in order to optimize business opportunities.

VIII. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

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For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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