Author:
- Nguyen Thi Huyen Anh – Senior Lawyer
- Vo Nguyen Truc Linh – Legal Department
In the context of today’s rapid technological advancements, intellectual property infringements have grown significantly in both frequency and severity, causing substantial losses to right holders. When their interests are compromised, these entities face a critical decision: choosing between court litigation and commercial arbitration for dispute resolution. This choice is not merely about choosing a forum for dispute resolution, but is a strategic consideration for safeguarding confidential information and brand reputation. Each method possesses distinct advantages and disadvantages, as they differ significantly in terms of enforcement mechanisms, costs, and timelines. Therefore, a profound understanding of these methods provides businesses with a comprehensive overview to make informed decisions in both dispute resolution and their overall corporate operations.
1. Scope of Application and Compatibility with Strategic Technology Projects
Clause 1, Article 28 of the Law on Investment 2025 provides that investors may opt for special investment procedures for investment projects implemented in specialized areas, including: industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, free trade zones, international financial centers and functional areas within economic zones. However, this mechanism shall not apply to projects subject to investment policy approval as prescribed by the Government.
In practice mega-projects relating to the research, design, testing, and manufacturing of semiconductor chips or artificial intelligence data centers, invariably prioritize locating their headquarters in high-tech zones or concentrated digital technology zones. Therefore, Article 28 of Law on Investment 2025 appears to be specifically designed to support this category of projects, creating a perfect synergy between location-based incentives and streamlined investment procedures.
2. Exemption Privileges: Maximum Reduction of Time Expenses
The most notable feature of the Special Investment Procedure is the exemption from a series of pre-clearance administrative requirements. Specifically, Clause 2, Article 28 of the Law on Investment 2025 allows projects registered under these procedures to be fully exempted from implementing the following procedures: investment policy approval, technology appraisal, preparation of environmental impact assessment (EIA) reports, preparation of detailed planning and notably, the issuance of Construction Permits as well as approvals related to construction and fire prevention and fighting.
Instead of spending years sequentially obtaining approvals from multiple specialized authorities from the central to local levels to obtain a multitude of sub-licenses, investors now only require an Investment Registration Certificate. This document serves as the primary legal basis for the State to proceed with land allocation, land lease, change of land use purpose and the execution of other administrative procedures so that the project can immediately commence implementation. For high-tech enterprises—where product lifecycles are extremely short and technology evolves daily—this shortening of investment preparation time provides a significant competitive advantage.
3. Transformation of the Regulatory Model: From Pre-Clearance to Post-Clearance with Investor Accountability
Alongside these procedural advantages, the law also demands commensurate self-responsibility from investors through a strict post-clearance management mechanism.
In exchange for not having to prepare an environmental impact assessment report and apply for a construction permit, Article 28 of Law on Investment 2025 requires investors to provide a written commitment to comply with the conditions, standards and technical regulations on construction, environmental protection, and fire prevention and fighting. The investment project proposal must include an assessment of potential environmental impacts, along with mitigation measures in lieu of a preliminary assessment report and concurrently provide an explanation for the use of technologies restricted from transfer (if any).
Furthermore, the safety of the works remains prioritized through the involvement of independent verification organizations. Prior to the official groundbreaking and commencement of construction, the investor is obligated to send a written notice to the local construction order management authority and the Management Board of the project area. The accompanying dossier must include the Economic – Technical Report prepared and approved by the investor, together with the Verification Result Report conducted by an independent and qualified organization. This independent verification report will comprehensively evaluate the safety of the works, fire prevention and fighting, environmental protection and compliance with current technical regulations.
Conclusion
The introduction of the Special Investment Procedures is not merely an administrative reform, but a strong affirmation of Vietnam in its commitment to accompany global technology corporations. By transferring proactivity to investors and replacing the traditional approval-based model with a modern commitment – post-clearance mechanism, this new legal framework will undoubtedly serve as a solid launching pad for Vietnam to capture the new generation of FDI inflows.
To optimize these privileges and establish internal compliance control mechanisms to meet the stringent post-clearance requirements of state management authorities, technology corporations will require strategic legal advice from law firms with profound practical expertise.
Time of writing: 10/03/2026
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You can refer for more information:
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- The Mediation Mechanism In Civil Procedure: Legal Nature And The Risk Optimization Problem For Enterprises
- Special Investment Procedures: New Policies Applicable to High-Tech and Semiconductor Projects
- Applying the force majeure clause to exempt liability under the contract
- Conditions for Granting a License for Establishment of a Representative Office of Foreign Traders in Vietnam
- Closure of a Representative Office of a Foreign Trader in Vietnam
