In recent years, Vietnam has continued to strengthen its position as an attractive destination for foreign direct investment (FDI), not only within Southeast Asia but also on a global scale. Recent developments, including major administrative reforms and adjustments to the country’s administrative boundaries, have been accompanied by a series of updates to the legal framework—particularly in the field of investment law. These changes promise to create a more favorable business environment while at the same time imposing stricter compliance requirements.
This article aims to provide readers, including foreign investors considering opportunities in Vietnam, with a ý nổi bật of the essential legal reforms that are shaping the country’s investment landscape.
One of the most significant reforms introduced in recent legal updates on investment in Vietnam is the substantial reduction of administrative procedures for investors.
Previously, under Article 53 of Decree No. 31/2021/ND-CP, investors were required to submit up to eight sets of application dossiers to the Ministry of Planning and Investment or four sets to the investment registration authority. This requirement placed a considerable burden in terms of cost and time, particularly for large-scale projects.
The new regulations now provide that investors need to submit only one paper dossier together with an electronic version to the Ministry of Finance or the investment registration authority. At the same time, the processing timeline has been shortened significantly: the appraisal period has been reduced from 10 days to 3–7 days, the issuance of the Investment Registration Certificate (IRC) has been shortened from 15 days to 10 days, and many other procedures have also been reduced—ranging from several days to nearly a month.
Notably, the new framework also introduces a requirement that dossiers must be submitted electronically with a digital signature, which carries the same legal validity as the paper version. This reform aims to minimize duplicate paperwork and enhance the efficiency of regulatory management.
It is clear that the Vietnamese government is actively improving its legal framework to be more practical and business-friendly, thereby fostering economic development and aligning with the national digital transformation agenda.
Another notable amendment in the recent investment regulations is the formal inclusion of the concept of “concentrated digital technology zones” into Vietnam’s legal framework on investment. This reflects the government’s policy direction to elevate the digital technology sector into a strategic industry, with such zones now entitled to the same management mechanisms and preferential policies as industrial parks, export processing zones, and high-tech zones.
Projects in the digital technology field are eligible for a broad range of incentives, including the production and provision of key digital technology products and services; the development of data centers and artificial intelligence (AI) systems; research, development, design, manufacturing, packaging, and testing of semiconductor chips; as well as digital technology projects located in concentrated digital technology zones.
In addition, training activities related to science and technology, innovation, and the national digital transformation program are now included among the incentive-eligible sectors. This is a significant development, as the availability of high-quality human resources has long been considered a “bottleneck” in advancing Vietnam’s digital economy.
Alongside the expansion of sector-specific incentives, the new investment regulations also introduce stricter control mechanisms over capital contributions by foreign investors. Previously, under Article 66 of Decree No. 31/2021/ND-CP, applications for registration of capital contributions, share purchases, or equity acquisitions by foreign investors were only required to indicate the “anticipated transaction value.” While this approach provided flexibility for enterprises that had yet to finalize contractual terms, it created a legal gap: authorities lacked accurate data on the actual scale and inflow of capital, resulting in unreliable statistics and potential risks in foreign exchange management.
Effective from September 3, 2025, registration documents must now disclose the actual transaction value of capital contributions, share purchases, or equity acquisitions. This change ensures that registered data reflects the real value of transactions, reducing discrepancies between declared and actual figures. It also enhances financial transparency, supports regulators in more effectively monitoring foreign investment activities, and mitigates risks of transfer pricing, money laundering, or other fraudulent practices.
Taken together, these reforms demonstrate a balanced approach: while expanding incentives to foster high-tech and innovative sectors such as digital technology, the government is simultaneously tightening transparency and discipline in the management of foreign investment flows into Vietnam.
These new regulations reflect Vietnam’s steady progress toward its goal of becoming a leading hub for high-quality FDI in the region. Legal reforms not only strengthen a transparent and stable investment environment but also create more favorable conditions for business operations.
In this context, foreign investors are strongly encouraged to proactively stay updated on the latest regulatory changes to seize emerging opportunities while minimizing potential risks during project implementation in Vietnam
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