Key Updates In The Decree Guiding The Implementation Of The Investment Law

The Government has recently issued Decree No. 96/2006/ND-CP dated March 31, detailing and guiding the implementation of several provisions of the Investment Law. The Decree aims to further improve the legal framework, remove administrative bottlenecks, and create a more open environment to attract high-quality capital flows into key sectors.

One of the most notable breakthroughs is the clarification of the “Special Investment Procedure” (Articles 46 to 50). This mechanism is designed specifically for projects implemented in industrial parks, export processing zones, high-tech parks, and economic zones.

Instead of going through lengthy and complex appraisal procedures related to construction, environmental protection, and fire prevention before obtaining approval as previously required, eligible investors can now choose a registration and commitment-based approach. Accordingly, investors only need to submit an application dossier accompanied by a written commitment to comply with national technical standards and regulations.

Management boards of economic zones and high-tech parks are responsible for reviewing the dossier and issuing the Investment Registration Certificate within 15 working days. This mechanism shifts the management approach from “pre-inspection” to “post-inspection”, helping reduce compliance costs and significantly shorten the time required to bring projects into operation.

To ensure strict enforcement, the Decree also clearly defines the responsibilities of state authorities in inspection and supervision. If a project fails to fulfill its commitments after becoming operational, investors may face strict penalties, including suspension or termination of project operations. This reflects a strong shift in governance mindset—placing trust in enterprises’ self-compliance while still maintaining legal discipline.

Alongside procedural reforms, the new Decree also establishes special investment incentives and support mechanisms (Article 21) aimed at attracting global technology giants and promoting future-oriented industries in Vietnam.

Beneficiaries of these special incentives are now more clearly defined with specific quantitative criteria. Notably, the incentives target projects in strategic technology sectors such as semiconductor chip manufacturing, artificial intelligence (AI), big data centers, and 5G network infrastructure.

For example, semiconductor chip R&D projects or AI data center projects with a total investment of VND 6,000 billion or more, with a minimum disbursement within five years, will be eligible for the highest levels of corporate income tax incentives and land rental incentives.

The Decree also provides special priority for the National Innovation Center (NIC) and startup innovation ecosystems. This demonstrates the Government’s strategic vision—not only focusing on attracting foreign direct investment (FDI) but also emphasizing technology transfer and the development of domestic technological capabilities.

In addition, the list of investment incentive locations has been updated. Notably, free trade zones and international financial centers are classified as areas eligible for the highest level of incentives, creating leverage for the development of new economic models.

The Decree also introduces conditions and mechanisms for reviewing business investment activities by publishing lists of conditional business sectors and sectors that will shift to a post-inspection management approach.

For conditional business sectors, the Decree requires ministries and ministerial-level agencies to annually evaluate the necessity and practicality of these conditions. If a business condition is no longer appropriate or creates unreasonable barriers, the responsible authorities must proactively propose its removal or amendment.

This mechanism helps prevent the re-emergence of unnecessary sub-licenses after reform efforts.

For foreign investors, the Decree also reaffirms a key principle: except for sectors listed in the “Market Access Restriction List,” foreign investors are granted market access and fair treatment equivalent to domestic investors.