Key Amendments Under Vietnam's 2025 Law on Investment: The Latest Developments and Practical Responses Foreign Investors Should Know
The 2025 Law on Investment, which took effect on March 1, 2026, introduces significant regulatory changes for foreign investors, including streamlined investment procedures, a revised list of conditional business lines, and greater flexibility in project operations.
01 - Company Formation Is Now Permitted Before Obtaining an Investment Registration Certificate (IRC)
Foreign investors are now permitted to establish an economic organization (company) before obtaining or amending an IRC, provided that the market-entry conditions are satisfied at the time the company is established.
02 - 36 Conditional Business Lines Removed, 15 New Lines Added, and 27 Lines Revised
36 business lines — including labor recruitment, worker dispatch (labor leasing), construction, and beauty-related services — have been removed from the list of conditional business lines. 15 new lines have been added, including personal data processing services and data-trading platform operation (aligning with the Law on Personal Data Protection, effective January 1, 2026). The conditions attached to the existing 27 lines have also been revised and clarified. These changes take effect from July 1, 2026.
03 - A New Mechanism to Adjust an Investment Project's Operating Duration Up or Down
Investors may now adjust a project's operating duration, whether extending or shortening it, while the project is still ongoing, provided it remains within the statutory maximum term. Previously, an extension could only be considered after the term had expired.
04 - Clarification of Projects Subject to Investment Policy Approval and of Decision-Making Authority
For projects located within industrial parks, export processing zones, hi-tech zones, and economic zones, the management board of the relevant zone is now expressly given approval authority, and it has been clarified that this authority vests in the Chairperson of the provincial People's Committee rather than the provincial People's Committee itself.
05 - Streamlining Cases Where No Amendment to Investment Policy Approval Is Required
Even where total investment capital increases or decreases by 20% or more, no amendment approval is required as long as the change does not affect the fundamental nature of the project.
06 - Extended Grace Period for Schedule Adjustments on Projects with Approved Investment Policy
The permissible delay threshold for project progress has been extended from 12 months to 24 months.
07 - An Additional Prohibited Sector for Outbound Investment
The manufacture and sale of e-cigarettes and heated tobacco products has been added to the list of business lines prohibited for outbound investment, increasing the number of prohibited sectors from 10 to 11.
08 - Exemption from the Outbound Investment Registration Certificate (IRC) Requirement in Certain Cases
Outbound investment in business lines below a small investment threshold with no attached conditions, in fields relating to national defense and security, and by state-owned enterprise groups, is no longer subject to the IRC requirement.
[Summary] Transitional arrangements have been put in place so that investment licenses and preferential treatment lawfully obtained before the effective date remain valid until their original expiration.