On November 29, 2024, the National Assembly enacted the Law amending several articles of the Law on Planning, the Law on Investment, the Law on Investment under the Public-Private Partnership Model, and the Law on Bidding (“Law No. 57/2024/QH15”).

Law No. 57/2024/QH15 introduces substantial amendments and additions to the Law on Investment, set to take effect on January 15, 2025. The following outlines the key changes to the Law on Investment.

1. Two additional business sectors are now prohibited from investment, namely: Trading national treasures and Exporting relics and antiques.

2. The power to grant investment policy approval (“IPA”) for investment projects on construction and operation of infrastructure of industrial zones and export processing zones has been moved from the Prime Minister to the provincial-level People’s Committees.

3. Supplement provisions regarding the Fund for Investment Support:

The Fund for Investment Support is established by the Government, funded by additional corporate income tax revenue in accordance with legal regulations and other legal sources. Its purpose is to stabilize the investment environment, encourage and attract strategic investors, multinational corporations, and provide support to domestic enterprises in sectors requiring investment incentives. The operational model, legal status, annual budget sources, and other details will be defined and issued by the Government.

4. Supplement provisions regarding the special investment procedures:

The special investment procedures apply to investment projects in the fields of semiconductor industry and high-tech industry in industrial zones, export processing zones, high-tech zones, concentrated information technology zones, free trade zones, and functional areas within economic zones.

Notably, these special procedures remove the requirements for several key approvals, including IPA, technology appraisal, EIAR approval, 1/500 construction detailed master plan approval, construction permit, firefighting and prevention approval. As a result, investors can obtain an investment certificate within just 15 days after their application has been reviewed and approved by the relevant management board of an industrial park, export processing zone, high-tech park, or economic zone.

The key new provisions of Law No. 57/2024/QH15 are expected to create favorable conditions for investors, attract both domestic and foreign capital, and stimulate national economic growth.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Baongoc Nguyen, Senior Legal Adviser, Vietnam