In line with the government’s ongoing efforts to improve the business environment, attract foreign investment, and promote economic growth, the Vietnamese National Assembly has recently adjusted numerous laws. These amendments aim to remove urgent institutional obstacles that have been hindering efficient governance and investment processes, while ensuring legal consistency.
In particular, on 29 November 2024, the National Assembly enacted Law No. 57/2024/QH15, amending and supplementing certain provisions of the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment, and the Law on Civil Procurement.
Notably, there are key amendments to the Law on Investment 2020, effective 15 January 2025, that investors should be aware of, which will be outlined in this article.
Key takeaways:
- Projects that fail to meet operational objectives within 24 months from the expected progress completion date specified in relevant granted documents, will be terminated by authorities.
- Data-related services now belong to the list of Conditional Business Lines. (They previously operated under general business regulations without specific conditions).
- A streamlined process for investment projects in the semiconductor and high-tech industries within specific zones significantly reduces the project commencement timeline by 250 to 300 days.
- The authority of Provincial People’s Committees has been expanded to approve investment policies for certain industrial and port projects.
- A new Fund for Investment Support will be established, funded by additional corporate income tax revenue associated with the global minimum tax, to counter potential reductions in FDI attractiveness and attract strategic investors.