Vietnam introduces simplified processes and expands investment opportunities
Vietnam’s Law No. 57/2024/QH15 (“Law No. 57”) amending the Law on Planning, the Law on Investment, the Law on Investment under the Public-Private Partnership Model, and the Law on Bidding came into effect on 15 January 2025, with the exception of some provisions which come into effect on 1 July 2025.
This article focuses on some of the key amendments Law No. 57 makes to the Law on Investment.
Amendments to Law on Investment
List of prohibited and conditional business sectors
Law No. 57 expands the business sectors in which investment is prohibited to include trading in national treasures and exporting relics and antiques.
It also amends the sectors in which investment is allowed, with conditions, to remove electrical consultancy services and fire prevention and firefighting and add new sectors including unmanned aircraft and related equipment and data platform services and analysis.
Special investment procedures
Law No. 57 introduces special investment procedures applicable to the following:
- Export processing zones
- Investment projects in industrial zones
- Concentrated information technology zones
- High-tech zones
- Functional zones in economic zones in the following fields:
- building innovation centres, research and development centres; and
- investing in the field of semiconductor integrated circuit industry, design technology, manufacturing of components, integrated electronic microcircuits, flexible electronics, chips, semiconductor materials.
- Free trade zones
- High-tech sector is given priority in developing and manufacturing products on the list of high-tech products encouraged for development per the Prime Minister’s decision.
Investors are now able to obtain an Investment Registration Certificate (“IRC”) within 15 days of the date of receipt of their full application dossier by the relevant management board of industrial parks, export processing zones, high-tech zones, or economic zones (“Management Board”). Where two or more investors propose a project with a request for the State to lease the same land or change the land use purpose for the same location, the Management Board shall utilise a first-come-first-served approach, where each subsequent investor is considered should its predecessor fail the investment assessment and not receive an IRC. Foreign investors are allowed to establish an economic organisation to implement the investment project before registering for investment.
Investors are no longer required to obtain separate investment policy approvals, technology appraisal and approvals, or permits in the areas of construction, environmental protection, and fire prevention and fighting for applicable projects. Commitments must instead be provided to meet all legal standards relating to construction, environmental protection, and fire safety. Projects must also include detailed evaluations of their potential environmental impact and propose measures to mitigate negative effects.
Other amendments
Amendments to Law on Investment under the Public-Private Partnership Model
The amendments to the Law on Investment under the Public-Private Partnership Model as made by Law No. 57 seeks to promote investment in future public-private partnership (“PPP”) projects. The amendments remove restrictions relating to the sectors in which PPP projects were allowed and removes the requirement for minimum capital. The rationale for this change appears to be to attract investment in small-scale infrastructure projects.
Law No. 57 increases the proportion of State capital participating in PPP projects to a maximum of 70% of the total investment for projects with large site clearance costs or implemented in economically disadvantaged areas. The project appraisal and approval process has also been streamlined and strongly decentralised to localities.
Amendments to Law on Bidding and Law on Planning
Law No. 57 amends the Law on Bidding by adding provisions on the selection of investors in special cases, allowing more instances for direct appointment, and improving provisions on pre-bidding. The Law on Planning is amended in several instances, including the introduction of a simplified procedure for the adjustment of the national, regional, or provincial planning when certain conditions are met.
