NEW PROVISIONS OF THE 2025 LAW ON INVESTMENT

The 2025 Law on Investment was promulgated in the context of Vietnam continuing to promote institutional reform and improve the business environment, with the aim of removing legal barriers, enhancing transparency, and strengthening national competitiveness. 

From March 1, 2026, the 2025 Law on Investment officially came into force, introducing a number of important amendments and supplements compared to the 2020 Law on Investment. These changes are expected to create more favorable conditions for investment activities while improving the effectiveness of state management of investment projects. 

Below are several notable new provisions: 

1. Reform of business conditions 

One of the most significant changes under the 2025 Law on Investment is the continued reform of business conditions through the following measures: 

• Abolishing 38 conditional business lines; 

• Adjusting the regulatory scope of 20 other business lines; 

• Transforming the management approach from “pre-inspection” (licensing and certification) to “post-inspection” (disclosure of conditions and standards) for certain industries listed by the Government. 

The shift from pre-inspection to post-inspection helps significantly reduce the time and cost of market entry for enterprises while enhancing investors’ responsibility for compliance. 

Notably, the 2025 Law on Investment prohibits investment and business activities related to electronic cigarettes and heated tobacco products. 

2. Simplification of procedures for outward investment 

In order to facilitate Vietnamese enterprises expanding into international markets, the 2025 Law on Investment has significantly simplified procedures for outward investment, specifically: 

• Abolishing the approval of investment policy for outward investment; 

• Narrowing the scope of projects required to obtain an Outward Investment Registration Certificate. 

Under the new regulations, only the following projects must obtain an Outward Investment Registration Certificate: 

• Projects with investment capital exceeding the threshold prescribed by the Government; or 

• Projects operating in conditional outward investment sectors under Clause 1 Article 41. 

For other projects, investors are only required to register foreign exchange transactions with the State Bank of Vietnam to transfer investment capital abroad. 

3. Foreign investors are not required to have a project before establishing an enterprise 

Clause 2 Article 19 of the 2025 Law on Investment removes a major practical obstacle: foreign investors are now allowed to establish economic organizations in Vietnam without being required to have an investment project beforehand. 

However, investors must still: 

• Meet market access conditions for foreign investors under Article 8 of the 2025 Law on Investment; and 

• Carry out procedures for obtaining an Investment Registration Certificate when implementing an investment project. 

This provision significantly facilitates market entry for foreign investors in Vietnam. 

4. Clarification of project scope and authorities approving investment policies 

The 2025 Law on Investment directly lists categories of projects subject to investment policy approval, instead of only regulating them according to the authority of specific state bodies as in the 2020 Law on Investment. This improves transparency and practical applicability. These projects mainly include large-scale projects or projects related to sensitive or important sectors affecting national defense and security, such as: Seaports, Airports, Telecommunications, Publishing and journalism, Projects located in national defense and security areas 

The law also clearly stipulates the competence of the National Assembly, the Prime Minister, and the Chairpersons of Provincial People’s Committees in approving investment policies, while strengthening decentralization to shorten administrative processing time. 

5. Removal of certain cases requiring adjustment of investment projects 

Article 33 of the 2025 Law on Investment abolishes two cases that previously required adjustment of investment projects: 

• Changes in total investment capital of 20% or more; 

• Changes in technology that had been subject to appraisal. 

The new regulation simplifies administrative procedures and creates more favorable conditions for investors, avoiding situations where minor changes require formal adjustments of investment policies. 

6. Specific provisions on the duration of investment projects 

Article 31 of the 2025 Law on Investment maintains the rule that: The duration of investment projects must not exceed 50 years for projects outside economic zones; or 70 years for projects located within economic zones. 

The new point is that investors are allowed to adjust the duration of investment projects (either increasing or decreasing) during project implementation, provided that the adjusted duration does not exceed the statutory limits. 

In contrast, the 2020 Law on Investment did not clearly regulate the adjustment of project duration. This addition aims to ensure consistency in investment regulations. 

7. Expansion of the special investment procedure 

According to Article 28 of the 2025 Law on Investment, investors may opt for a special investment procedure for projects located in: Industrial parks, Export processing zones, High-tech zones, Concentrated digital technology zones, Free trade zones, International financial centers, Functional areas within economic zones 

Projects applying this special procedure are not required to carry out the following procedures: Investment policy approval, Technology appraisal, Environmental impact assessment, Construction permits, Fire prevention and fighting procedures 

Instead, investors must submit a written commitment to comply with legal conditions, standards, and technical regulations, together with a project proposal replacing the preliminary environmental impact assessment. 

8. Changes regarding the transfer of investment projects 

Clause 7 Article 51 of the 2025 Law on Investment expands the scope of application for investment project transfer procedures. 

Accordingly, all projects that have obtained an investment policy decision/approval; or been granted or adjusted an Investment Registration Certificate may be transferred in accordance with the Law on Investment. 

Previously, under the Law on Real Estate Business 2023, only certain projects were subject to transfer procedures under the Law on Investment. 

PROCEDURES FOR AMENDING THE PROJECT IMPLEMENTATION LOCATION NOT SUBJECT TO INVESTMENT POLICY APPROVAL↗