Law on Investment No. 143/2025/QH15, which becomes effective from 01 March 2026 (“LOI”) marks a further step in the modernization of Vietnam’s investment framework. The LOI introduces reforms aimed at improving the business environment and reducing administrative burdens for investors, and aligning the country’s investment framework with international practices.
One key change is the reduction of conditional business sectors, as reflected in the revised list of conditional business lines under LOI and its implementing provisions. Conditional sectors where businesses must meet specific regulatory requirements before operating have been streamlined to remove unnecessary barriers. This reform is intended to facilitate market entry, lower compliance costs for enterprises, and encourage competition across industries, while maintaining regulatory safeguards for sectors related to national security, public health.
Another key reform in Vietnam’s market entry mechanism by LOI is that foreign investors are now permitted to establish an economic organization prior to obtaining the Investment Registration Certificate (“IRC”). The mandatory “IRC-first” sequence under the former investment law is officially dismantled.
The law also simplifies procedures for industrial investment projects, particularly those located in industrial parks and economic zones. Under the special investment procedures, investors are entirely exempted from obtaining investment policy approvals, environmental impact assessment (EIA) reports, and construction permits. Instead of traditional licensing, they simply need to submit a written commitment to comply with relevant standards, along with a project proposal outlining environmental mitigation measures. By reducing procedural overlaps and clarifying the responsibilities of competent authorities, the new framework aims to shorten approval timelines and facilitate faster project implementation.
In addition, the law introduces simplified procedures for outbound investment, including revised provisions on the approval authority and registration requirements for overseas investment projects. By reducing the number of projects requiring high-level government approval and allowing streamlined registration and foreign exchange procedures with the Ministry of Finance, the law enables investors to respond more efficiently to international investment opportunities.
Overall, these reforms aim to strengthen Vietnam’s attractiveness as an investment destination while supporting the international expansion of Vietnamese enterprises and promoting deeper integration into global investment flows.
