Effective from March 1, 2026, Vietnam's Investment Law 2025 officially came into force, marking another significant milestone in the country's efforts to improve its investment environment. The new legislation aims to simplify administrative procedures, enhance transparency, and strengthen Vietnam's attractiveness as a destination for foreign direct investment (FDI).
For businesses planning to establish or expand manufacturing operations in Vietnam, understanding these regulatory updates is essential for developing effective investment strategies and ensuring smooth project implementation.
Below are five key highlights of the Investment Law 2025.
1. Enterprise Incorporation Allowed Before Obtaining an Investment Registration Certificate (IRC)
One of the most notable changes is that foreign investors may now complete enterprise incorporation procedures and obtain an Enterprise Registration Certificate (ERC) before completing the application for an Investment Registration Certificate (IRC), provided they comply with Vietnam's foreign market access regulations.
This change helps shorten investment preparation timelines and facilitates faster project implementation.
2. Expansion of the Special Investment Procedure
The Investment Law 2025 expands the scope of projects eligible for the special investment procedure, including projects in high technology, innovation, research and development (R&D), international financial centers, and other strategic sectors.
Except for projects that require investment policy approval under government regulations, eligible projects will be subject to a post-audit (post-inspection) mechanism instead of pre-approval (pre-inspection), significantly reducing administrative processing time and accelerating project implementation.
3. Reduction in Conditional Business Lines
The list of conditional business sectors has been significantly reduced from 227 to 142 industries and business lines.
This reform lowers compliance costs, simplifies administrative procedures, and creates a more transparent and business-friendly investment environment.
4. Simplified Procedures for Investment Project Adjustments
The new law eliminates many circumstances requiring approval for adjustments to investment policy decisions, retaining only five mandatory cases.
This provides investors with greater flexibility when expanding operations, adjusting production activities, or implementing new investment plans.
5. Greater Flexibility in Adjusting Project Operating Terms
Under the new regulations, investors may request an extension or adjustment of a project's operating term during project implementation, rather than only when the project is approaching expiration.
This enables businesses to take a more proactive approach to long-term investment planning and optimize their development strategies.
Vietnam Continues to Enhance Its Appeal for FDI
The amendments introduced under the Investment Law 2025 demonstrate Vietnam's continued commitment to improving its investment climate through greater transparency, efficiency, and alignment with international best practices. These reforms also provide a stronger foundation for attracting high-quality FDI, particularly in high-tech industries, advanced manufacturing, and innovation-driven sectors.
As Vietnam continues to refine its investment policies, choosing an industrial park with well-developed infrastructure, a strategic location, and experienced investment support services can help businesses accelerate project implementation while minimizing regulatory risks.
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With over 30 years of experience in industrial park development, ROX iPark offers not only high-quality industrial infrastructure but also comprehensive support throughout site selection, project implementation, and regulatory compliance. We are committed to providing a business-friendly investment environment that enables investors to seize opportunities and achieve sustainable growth in Vietnam.