Golden Opportunity For Investors: 5 Key Benefits From The New Investment Law

Vietnam’s investment landscape is entering a phase of rapid expansion, driven by significant reforms introduced under the 2020 Investment Law and its latest amendments. This is not merely a legal update—it represents a roadmap of opportunities enabling investors to maximize returns, minimize risks, and scale operations efficiently.

Below are the most advantageous changes investors should take note of:

1. Foreign Investors No Longer Required to Have a Project Before Company Incorporation

Under the 2025 Investment Law, foreign investors are now allowed to establish a company without having a prior investment project, provided they meet market access conditions applicable to foreign investors.

Previously, establishing a company without an attached investment project was only permitted in specific sectors such as innovation centers, R&D centers, large-scale data center infrastructure, cloud computing infrastructure, 5G and above mobile infrastructure, and other digital infrastructure (as amended under Law No. 90/2025/QH15).

2. Expansion of the Special Investment Procedure

According to Article 28 of the 2025 Investment Law, investment projects located in industrial zones, export processing zones, high-tech parks, centralized digital technology zones, free trade zones, international financial centers, and functional zones within economic zones (except those requiring investment policy approval under government regulations) may opt for a special investment procedure.

Projects under this procedure are exempt from: Investment policy approval,Technology appraisal,Environmental impact assessment (EIA),Detailed planning procedures,Construction permits,Other approvals in construction and fire safety

Investors are only required to submit a commitment to comply with applicable standards and propose the project. This marks a strong shift from a “pre-approval” (ex-ante) mechanism to a “post-audit” (ex-post) approach, significantly reducing licensing time and administrative procedures before operations.

3. Revisions to Investment Incentive Policies

The new law expands access to investment incentives for businesses operating in: Science and technology development, Innovation, Digital transformation, Digital technology industries, Semiconductor industry. It also encourages transitions toward new economic models such as: Green economy, Circular economy, Digital economy, Sharing economy.

These changes incentivize businesses to invest in clean technologies, digital transformation, and sustainable development.

Additionally, the law promotes participation in global value chains and the development of industrial clusters.

Amendments to Articles 15 and 16 broaden the scope of eligible enterprises while directing capital flows toward high-tech, digital, and sustainable sectors—creating advantages for innovative and long-term strategic businesses.

4. Removal and Addition of Conditional Business Lines

Certain business lines have been removed from the list of conditional sectors, including: Tax procedure services, Customs brokerage services, Employment services, Labor outsourcing services… (Annex IV, 2025 Investment Law).

From July 1, 2026, the law introduces a fundamental shift from pre-licensing control to post-compliance supervision, reducing administrative burdens.

Conditional business sectors will be divided into two groups:

• Sectors requiring licenses/certificates before operation (ex-ante control)
• Sectors not requiring prior licensing, where businesses only need to declare compliance and will be subject to post-audit supervision

5. Clarification of Investment Policy Approval Requirements

The law clearly defines 20 categories of projects subject to investment policy approval, improving transparency and helping businesses identify legal obligations early in the project preparation stage.

The authority to approve investment policies has also been restructured in a way that benefits businesses by reducing processing time and administrative complexity:

• The National Assembly approves only projects requiring special mechanisms or policies deviating from existing laws or resolutions
• The Prime Minister approves 8 groups of projects
• Provincial People’s Committee Chairpersons (instead of the full Committee as previously) approve 13 groups of projects

6. Abolition of Investment Policy Approval for Outbound Investment

Previously, certain outbound investment projects required an additional step of obtaining investment policy approval before being granted an outbound investment registration certificate. The removal of this requirement: Eliminates an administrative step, Enhances investor autonomy, Simplifies legal procedures, Shortens project preparation and implementation timelines.

Under Article 42 of the 2025 Investment Law, investment policy approval for outbound investment now only applies to: Projects exceeding capital thresholds set by the Government, Projects in conditional outbound sectors such as banking, insurance, securities, press, broadcasting, television, and real estate

✅ Conclusion

These reforms signal a clear shift toward a more open, transparent, and business-friendly investment environment in Vietnam. With reduced administrative barriers, expanded incentives, and streamlined procedures, the new Investment Law creates a strong foundation for both domestic and foreign investors to thrive.

Dương Nguyễn