Author:
- Tran Phuong Nam – Lawyer
- Tran Trung Hieu – Paralegal
The Investment Law No. 143/2025/QH15 (“Investment Law 2025”), effective from March 1, 2026, introduces significant changes to investment procedures in Vietnam. One of the key highlights is a shift in how the government manages investments—from checking everything in advance to supervising things afterward. It also clearly narrows down which projects need investment policy approval. This change is meant to reduce the “ask–give” situation, cut out unnecessary administrative steps, and still keep proper control over higher-risk projects.
1. Scope of Projects Subject to Investment Policy Approval
Unlike the 2020 Investment Law (which mainly classified projects based on the authority of different bodies without directly listing them), the Investment Law 2025 significantly narrows the scope of projects that must go through investment policy approval. Under Article 24, it clearly lists 20 types of projects that require approval, grouped as follows:
- Projects using large-scale or sensitive land/resources:projects involving large-scale conversion of forest land (special-use, protection, production forests); conversion of 500 hectares or more of rice land; projects requiring large-scale resettlement; projects located in areas affecting national defense and security; projects requesting allocation of sea areas.
- Projects in special or sensitive sectors:nuclear power; casinos and betting; oil and gas processing; air transport business; telecommunications with network infrastructure; forestry; publishing and press activities carried out by foreign investors.
- Projects related to heritage or special urban areas:projects in protected zones of national monuments or world heritage sites; projects in restricted development areas or historic inner-city areas of special-grade cities.
- Large-scale infrastructure and real estate projects:housing and urban area development (where the investor already has land use rights); golf courses; industrial zones, export processing zones, digital technology zones; major seaports; airports and key aviation infrastructure.
- Projects with special requirements: projects requesting land allocation, land lease, or land-use conversion approval (except for certain exempted cases); projects requiring special mechanisms or policies beyond existing laws; and other projects under the Prime Minister’s approval authority as prescribed by law.
This narrowing is clearly shown through the removal of investment policy approval requirements for many common types of projects, such as:
- Commercial housing and urban area projects where investors are selected through auctions or bidding (except for projects of particularly large scale with significant socio-economic impact).
- Projects of investors who have won auctions for mineral exploitation rights.
- Projects for building technical infrastructure of industrial clusters.
Now, this approval procedure mainly focuses on projects that are sensitive in nature, directly affect national defense and security, or involve strategic resources and key infrastructure (such as seaports, airports, telecommunications, sea areas, etc.).
Regarding the authority to approve investment policies, Article 25 of the 2025 Investment Law provides that: the National Assembly only approves projects requiring special mechanisms or policies. The Prime Minister approves 8 groups of projects. The Chairperson of the provincial People’s Committee (instead of the provincial People’s Committee as before) approves 13 groups of projects. This clearer allocation of authority, together with the narrowing of project scope, is not only an administrative reform but also helps remove many legal obstacles, creating positive and far-reaching impacts for investors.
2. Impact on investors
The narrowing of the scope of projects requiring investment policy approval brings clear legal and commercial advantages, first and foremost eliminating the “delay causing missed opportunities” for businesses. Instead of having to wait for months (or even years) to obtain policy approval from state authorities, ordinary production, commercial, and service projects can now directly proceed with applying for an Investment Registration Certificate or business registration. This streamlining allows investors to seize market opportunities more quickly, which is especially important in the context of constantly shifting global supply chains. In addition, reducing administrative barriers at the initial stage also strongly encourages mergers and acquisitions (M&A) of projects, giving investors greater flexibility in structuring transactions and expanding their autonomy over the project lifecycle. Notably, by clearly specifying the list in Article 24, the 2025 Investment Law enhances transparency regarding legal risks, minimizes inconsistent interpretations by regulatory authorities, and reduces the room for the “ask–give” mechanism, thereby creating a safer and more predictable investment environment.
Overall, the introduction of the 2025 Investment Law marks a significant step forward in unlocking private sector resources. However, the liberalization of procedures always comes with post-audit risks. Proactively building a solid legal framework from the very beginning will be key to ensuring sustainable project development.
Time of writing: 12/03/2026
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You can refer for more information:
- The New Landscape Of Conditional Business Investment Sectors From 2026: Reductions And Transformations
- Statute of Limitations in Commercial Contract Disputes and Risk Control Measures for Enterprises
- Foreign Direct Investment Procedures: Issuing Enterprise Registration Certificate (ERC) Before Investment Registration Certificate (IRC)
- 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
