The Investment Law 2025, promulgated by the National Assembly, introduces a number of significant changes aimed at further improving the investment and business environment, simplifying administrative procedures, and enhancing the competitiveness of the economy. Compared to the Investment Law 2020, the new provisions clearly reflect a shift from ex-ante control to ex-post supervision, while also increasing flexibility in the management of investment activities. Below, Võ & Associates presents several notable revisions under the Investment Law 2025.

1. Adjustments to business investment lines:

Compared to the 2020 Law on Investment, Appendix IV of the 2025 Law on Investment (No. 143/2025/QH15) has reduced and amended the scope of certain conditional business investment lines. Specifically, it abolishes 38 conditional business lines and adjusts the scope of 20 conditional business investment lines compared to the 2020 Law on Investment. Some abolished business lines include: tax procedure services; customs procedure services; insurance auxiliary services; labor subleasing services; commercial inspection services; temporary import for re-export of frozen foods; temporary import for re-export of used goods, etc. The list of conditional business lines is stipulated in Article 7 and Appendix IV of the 2025 Law on Investment and shall take effect from July 1, 2026.

Additionally, under the “post-audit” administrative management mechanism, the 2025 Law on Investment categorizes conditional business investment lines into two (02) groups: (i) conditional business investment lines requiring licenses or certificates prior to conducting business investment activities; and (ii) conditional business investment lines managed through the declaration of business requirements and conditions for post-audit management. Accordingly, as stipulated in Article 7 of the 2025 Law on Investment, the Government shall promulgate the list of these two groups of business lines, which is currently in the process of finalization.

2. Amendments and supplements to investment-incentivized business lines:

Article 15 of the 2025 Law on Investment introduces a new approach to amending and supplementing the list of investment-incentivized business lines. Specifically, instead of exhaustively listing each business line eligible for investment incentives, this Article establishes general principles for determining such business lines. Accordingly, prioritized sectors for investment attraction will focus on strategic objectives in fields such as high technology, the semiconductor industry, digital transformation, renewable energy, and the green economy. Concurrently, the authority to determine the detailed and specific list of business lines eligible for investment incentives is delegated to the Government. This allows the Government to make timely adjustments in alignment with the socio-economic context and developmental orientation of each period.

3. Foreign investors may establish economic organizations to implement investment projects prior to procedures for the issuance or adjustment of the Investment Registration Certificate:

A notable new point of the 2025 Law on Investment is permitting foreign investors to establish economic organizations to execute investment projects before carrying out the procedures for the issuance or adjustment of the Investment Registration Certificate, as stipulated in Clause 2, Article 19 of the 2025 Law on Investment. Pursuant to Article 19 of the 2025 Law on Investment, this provision contributes to shortening the market entry time for foreign investors, opening up broader opportunities for the actual implementation of investment projects.

4. Clarification of the scope of projects subject to investment policy approval – special investment procedures:

Article 24 of the 2025 Law on Investment specifically lists 20 projects subject to investment policy approval. Furthermore, the authority has been amended and supplemented in Article 25 of the 2025 Law on Investment as follows:

• The National Assembly shall only approve the investment policy for projects requiring the application of special mechanisms and policies.
• The Prime Minister shall approve the investment policy for 08 groups of projects.
• The Chairman of the Provincial People’s Committee (replacing the Provincial People’s Committee as previously regulated) shall approve 13 groups of projects.

In addition, the 2025 Law on Investment supplements new provisions on special investment procedures applicable to investors with projects in zones with special functions, such as industrial parks, high-tech zones, international financial centers, etc. Under the new regulations, investors with projects in these zones are entitled to opt for the special procedure mechanism under Article 28 of the 2025 Law on Investment to be exempted from procedures regarding investment policy approval, environmental impact assessment reports, construction permits, etc., and replaced by a self-commitment mechanism, significantly shortening the legal completion time for investment and facilitating rapid project deployment.

5. Adjustments to regulations on operational term and project implementation schedule:

The 2025 Law on Investment adjusts regulations on the operational term and implementation schedule of projects towards greater flexibility and convenience for investors. Specifically, Clause 1, Article 31 of the 2025 Law on Investment expands the subjects eligible for a maximum operational term of 70 years to include investment projects for the construction and commercial operation of infrastructure in high-tech zones, high-tech industrial parks, concentrated digital technology zones, and projects subject to special investment incentives and support. Besides, pursuant to Clause 3, Article 33 of the 2025 Law on Investment, only 05 cases require enterprises to adjust the investment policy. The new regulation simplifies procedures, creating favorable conditions for investors and avoiding the necessity of investment policy adjustments for minor changes. The removal of the requirement for investors to adjust the investment policy approval decision upon changing technology allows investors to continuously update and adopt new technologies to enhance the project’s operational efficiency. These new provisions of the 2025 Law on Investment aim to institutionalize state policies on private economic development, driving double-digit economic growth to attract domestic and foreign investment for technology-intensive projects such as renewable energy, high technology, and advanced science and engineering, thereby creating strong momentum for rapid and sustainable development.

6. Adjustments to regulations on outbound investment:

The 2025 Law on Investment has adjusted regulations on outbound investment activities towards streamlining procedures and reducing the cases requiring an Outbound Investment Registration Certificate. Specifically:

First, unlike the 2020 Law on Investment, which explicitly regulated outbound investment capital sources and the implementation of outbound investment activities, Article 43 of the 2025 Law on Investment does not institutionalize provisions on outbound investment capital sources, the transfer of investment capital abroad, the repatriation of profits, or loan incentives. Instead, these contents will be detailed in the guiding Decree.

Second, the 2025 Law on Investment has eliminated the procedure for issuing the Outbound Investment Registration Certificate for the cases specified in Clause 3, Article 42 of the 2025 Law on Investment, including:

• Projects with outbound investment capital below the threshold prescribed by the Government and not belonging to conditional outbound investment business lines;
• Outbound investment projects associated with national defense and security, implemented under agreements between the Government of Vietnam and the governments of other countries;
• Outbound investment projects of state-owned economic groups, state general corporations, and other economic organizations as prescribed by the Government. For the aforementioned projects, investors are only required to carry out foreign exchange transaction registration procedures in accordance with the law on foreign exchange management.

Third, the 2025 Law on Investment has abolished the procedure for outbound investment policy approval (formerly under the authority of the National Assembly and the Prime Minister under the 2020 Law on Investment) to grant maximum autonomy and cut administrative procedures, allowing investors to freely expand into the international market.

The above are the sharing of lawyers, providing information not for consulting purposes and not consulting opinions, Vo & Associates is not responsible in all cases.

Contact Information

📞 Hotline: +84 909 865 891 (Zalo, WhatsApp)

📧 Email: hello@vo-associates.vn

🌐 Website: https://vo-associates.vn

🏢 Room 105, 1st floor, Cityview Building, 12 Mac Dinh Chi Street, Sai Gon Ward, Ho Chi Minh City.

Best regards./.