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Viet Nam
Industrial Park Status
Text by Saito Hiroshi
The 52th: Changes to the Investment Law
This time, we will be discussing the main changes to Vietnam’s investment law, which was revised last July, as well as the impact on business practices and points to note.
I would like to explain this using a list.
| tem (basic provisions | )Current status, old l | aw (2020 law)after changes | ,impact on practice of the new law, points to note |
| 1. The number of industries subject to conditional investment reorganization | will be reduced to 198 (up to 234 at the time of the July 2025 amendment) | .(Note: Restrictions on crypto assets and personal data will continue.) | The new regulations will come into effect on July 1, 2026. |
| (Article 7, Appendix IV) | A management method that requires obtaining permits and certifications in certain fields before starting investment | or business activities. In place of permits and certifications, business requirements and conditions for post-inspection management are published. Businesses can operate if they meet the requirements, and the system is shifting to one in which the authorities conduct post-inspection | .The process has shifted from obtaining a permit before operating to one in which compliance with requirements is based on personal responsibility. It is now more important than ever for companies to establish an internal compliance system that can withstand post-inspection by the authorities. |
| 2. Special Investment Incentives | Conventional general preferential treatment frameworks for high-tech activities and energy, etc. (See the diagram on the right for a list) | A special preferential treatment framework will be established for innovation centers, R&D, digital technology, semiconductors, AI-related businesses, etc. | Details will be stipulated in subordinate legislation under the Corporate Tax Act and the Land Act, so we will have to wait for their promulgation in the future. |
(Article 17) |
| 3. Procedural steps for company establishment | After obtaining an IRC (Investment Registration Certificate), it was necessary to obtain an ERC (Enterprise Registration Certificate). | You can now establish a company (obtain an ERC) without waiting for an IRC. (*Required: The industry must comply with foreign investment regulations.) | It is possible to open accounts and hire personnel earlier. However, due to the need to await enforcement of the regulations, parallel procedures are required to avoid the risk of not obtaining IRC for a long time. |
(Article 19) |
| 4. Subject to investment policy approval | The target projects were specified by separate clauses for each person with approval authority. The clauses were written separately depending on who was approving, making it difficult to understand the overall picture of the target projects. | The types of projects that require approval are listed in one article, organized into 20 categories (large-scale land use, large-scale infrastructure, etc.). | Having all project requirements for approval listed in one place reduces the risk of overlooking something during pre-research and planning. |
(Article 24) |
| 5. Reorganization of Approval Authority | Approved by the Provincial People’s Committee (organizational authority), etc. | Approval authority has been clarified and organized into the following four categories: The National Assembly ② The Prime Minister (8 categories) ③ Personal approval by the head of the province (Chairman of the Provincial People’s Committee) (13 categories) ④ Management committees for each jurisdiction | Approval at the local level will shift from a deliberative “committee (organization)” to “individual approval” from the top, which is expected to speed up decision-making and procedures (specific procedural methods are subject to government regulations in the future). |
(Article 25) |
| 6. Establishment of special investment procedures | Even within special economic zones and industrial parks, businesses must go through a series of separate licensing procedures, including environmental impact assessments, construction permits, and fire safety. | In projects in industrial parks, high-tech zones, etc. (where investment policy approval is not required), investors can be exempt from a series of procedures such as technical assessment and environmental impact assessment by committing to comply with legal standards. | The shift to a model that allows for quick progress without review, but requires full responsibility if any violations of the rules are discovered later. Before construction begins, the company’s technical and environmental teams will need to confirm compliance with standards and establish a system to ensure compliance with laws and regulations. |
(Article 28) |
| 8. The maximum operating period for investment projects | will be capped at 50 years (70 years for special economic zones) | .This limit will remain the same, but it will be possible to shorten it as well as extend it. | If manufacturing industries and other sectors neglect capital investment for many years, the technology will be deemed outdated, and there is a risk that the extension of the investment period will be denied and the business will no longer be able to continue. Therefore, it is essential to carry out planned equipment updates and environmental measures reviews several years before the expiration date. |
(Article 31) | Only the extension of the activity period is stipulated. | It is clearly stated that extension is not possible if outdated technology is used or there is a risk of environmental pollution. |
Summary: As mentioned above, the procedures themselves have been simplified and the time required for approval has been shortened, but if a violation is discovered during a follow-up inspection,
責任を追及され罰金を請求されるリスクがあるため、従前以上に法令順守が求められている。
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
