Vietnam Enacts Investment Law 2025, Overhauling Investment Landscape

The National Assembly of Vietnam has passed the Law on Investment 2025, which comprehensively regulates business investment activities both domestically and overseas. This new law establishes a framework to clarify the approval process for investment guidelines, the issuance and management of Investment Registration Certificates, and aims to strengthen the attraction of domestic and foreign investment. The law details provisions concerning the "approval of investment guidelines," where competent authorities approve the objectives, location, scale, schedule, and duration of investment projects. It also clarifies the role of the "investment registration authority" responsible for issuing, adjusting, and revoking Investment Registration Certificates, thereby systematizing the project registration process. Furthermore, the law mentions the establishment of a "national database on investment" covering all investment projects nationwide and a "national investment information system" for monitoring, evaluating, and analyzing the investment situation, aiming to improve transparency and efficiency in investment management. Definitions for various types of investment projects, such as "new investment projects," "expanded investment projects," and "innovative startup investment projects," are also clarified. This indicates an intention to promote investment in innovative businesses that leverage intellectual property, technologies, and new business models. This law applies to all business investment activities in Vietnam, regulating the activities of domestic investors, foreign investors, and foreign-invested economic entities. Specifically, market access conditions for foreign investors will be stipulated based on a list of business lines accessible to them. Vietnam, under its one-party system, pursues economic growth, with Foreign Direct Investment (FDI) being a crucial pillar of its development. This latest amendment to the investment law is part of Vietnam's strategy to achieve sustainable economic growth by providing a more streamlined investment environment and attracting investment in technological innovation and high-value-added industries. Amidst strong economic ties with China, improving the investment climate is also a notable move for international companies seeking to diversify their supply chains. Source: Bao Chinh Phu