When investing in Vietnam, do foreign investors always need to obtain investment approval? Which cases are mandatory, and which are exempted? What legal risks may arise if the approval is not properly obtained? These are common concerns among many FDI enterprises when carrying out investment procedures in Vietnam, especially as investment regulations are becoming increasingly strict.
In practice, DEDICA Law finds that many foreign investors confuse investment registration with investment policy approval. This misunderstanding may result in application rejection, project delays, or even administrative penalties.
Investment policy approval refers to the decision by a competent state authority to approve, in principle, an investment project before the investor is allowed to proceed with subsequent procedures.
Under the current Law on Investment, not all projects of foreign investors are required to obtain investment approval. However, projects that have a significant impact on socio-economic development, national defense, security, land use, or the environment must go through this approval process.
Many FDI enterprises mistakenly believe that company incorporation alone is sufficient. Only when expanding projects, leasing land, or changing business lines do they realize that investment approval should have been obtained from the outset.
Depending on the scale and nature of the project, foreign investors may need approval from different authorities, including:
The National Assembly
The Prime Minister
Provincial People’s Committees
Each level has different conditions, documentation requirements, and processing timelines. If the competent authority is incorrectly identified, the application process may be delayed for months, seriously affecting business plans.
Understanding when investment approval is required not only helps investors comply with the law but also protects the entire project from the very beginning.
DEDICA Law always recommends that foreign investors conduct a legal due diligence review before project implementation. This review helps determine:
Whether the project is subject to investment approval
Which authority has approval competence
Whether conditional business lines apply to foreign investors
Potential risks related to land, licenses, and planning
Many cases handled by DEDICA show that a single incorrect assessment can cause investors to lose hundreds of millions of VND in opportunity costs due to project delays.
With extensive experience in foreign investment consulting and direct work with state authorities, DEDICA Law provides:
Advice on optimal investment structures to minimize approval requirements
Preparation of investment policy approval applications
Representation before competent authorities
Consulting on project adjustment, expansion, and investor changes
Ongoing legal advisory services for FDI enterprises after establishment
DEDICA’s strength lies not only in “handling paperwork,” but in helping investors clearly understand risks, choose optimal legal solutions, and save long-term legal costs.
Are you a foreign investor or an FDI enterprise unsure whether your project requires investment approval?
Delays or procedural errors may result in lost business opportunities, penalties, or project suspension.
Contact DEDICA Law for tailored legal strategies.
📞 Hotline: (+84) 39 969 0012 (WhatsApp, WeChat & Zalo supported)
🕒 Working hours: Monday – Friday (8:30 – 18:00)
Contact us now for a free initial consultation with our professional lawyers.
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