Investment and Business Law 2025 – A New Milestone in Vietnam’s Investment Attraction Policy

A Draft Law on Investment and Business has recently been released for public consultation from the business community and legal experts.

According to the draft, the Law governs investment and business activities in Vietnam and from Vietnam abroad, applying to investors as well as relevant agencies, organizations, and individuals engaged in such activities. This move demonstrates Vietnam’s strong commitment to reforming the legal framework for investment and business activities.

If approved, the Law is expected to take effect on July 1, 2026, replacing the current Law on Investment 2020.

Five Key Highlights to Note:

1️⃣ Renamed as the “Law on Investment and Business”
This new title better reflects the nature and scope of regulation — covering not only “investment projects” but also broader investment and business operations in practice.

2️⃣ Simplified Procedures and Greater Decentralization
The draft introduces major procedural reforms by streamlining investment approval processes, removing unnecessary appraisal requirements, and granting more authority to local governments.

3️⃣ Enhanced Investor Autonomy and Removal of Unreasonable Administrative Barriers
The draft reaffirms that investors will no longer be subject to mandatory requirements such as using domestic goods, meeting localization ratios, or locating offices in designated areas. These previously known “reverse protection” measures are now officially abolished.

4️⃣ Investment and Business Conditions to Be Announced by the Government
Instead of being rigidly stipulated in the law, the list of conditional business sectors and related specific conditions will be issued by the Government, ensuring flexibility and responsiveness to real-world developments.

5️⃣ Establishment of an Investment Support Fund and New Incentive Policies
The draft proposes the creation of an Investment Support Fund financed by global tax (GloBE) revenues, aiming to attract strategic investors and support large-scale projects.

You can also refer to the comparison table between the Draft Law and the current 2020 Law on Investment to see the key differences more clearly.
DEDICA hopes this summary helps readers grasp the updates easily and follow Vietnam’s ongoing policy reform process with greater insight.