How to invest FDI in green construction material manufacturing in Vietnam?
Vietnam is witnessing a strong rise in the green construction material industry, a sector that attracts foreign investors due to its long‑term growth potential and the government’s strong commitment to sustainable development. In this context, foreign direct investment (FDI) flowing into environmentally friendly building material production is increasing rapidly, raising a major question: How to invest effectively, legally, and cost‑efficiently when entering this field in Vietnam?
Investment potential and trends in green building materials in Vietnam
Today, “sustainable development” is no longer merely a symbolic concept but has become a mandatory standard in the construction industry. Vietnam, with its rapid urbanization, huge infrastructure demands, and an ambition to reach net zero emissions by 2050, is creating a promising market for enterprises producing environmentally friendly building materials.
What is the market demanding?
Materials such as non‑fired bricks, ultra‑light concrete, bio‑paints, energy‑efficient glass, recycled materials … are favored because of their resource‑saving features, emission reduction, and reusability. In addition, the Vietnamese government has issued many investment incentive policies in this field, especially in industrial zones, hi‑tech parks, and key economic regions.
Which incentive policies are opening opportunities for investors?
According to the 2020 Investment Law and its guiding documents, production of environmentally friendly materials belongs to the list of industries granted investment incentives. Specifically:
Exemption or reduction of corporate income tax in the first 4 years, 50% reduction for the next 9 years (if conditions are met).
Import tax exemption for machinery, equipment, materials that cannot be produced domestically.
Support for land use, exemption or reduction of land lease fees depending on area and specific project.
Legal steps required to implement an FDI project producing green materials
To invest in green construction materials manufacturing in Vietnam legally and effectively, investors need to carefully prepare both legal documentation and business strategies. Lack of mastery of procedures may lead to delays, incurred costs, or refusal of licensing.
Investment registration procedure
The first step is to apply for an Investment Registration Certificate at the Department of Planning and Investment where the project is to be located. The dossier includes the investment project proposal, documents demonstrating financial capacity, land lease contract (if any), environmental protection commitments …
If the project belongs to a conditional field or requires environmental impact assessment (for example, producing new materials, using non‑popular technology …), the investor must carry out additional approval procedures at sectoral authorities.
Establishing an FDI company
After being granted the Investment Registration Certificate, the investor proceeds to establish a company in Vietnam under the Enterprise Law. This is necessary to have legal entity status to execute the project.
Obtaining factory construction permit, environmental permit
Depending on the project scale, the investor needs to apply for construction permits, approval of basic design, fire safety assessment, and especially environmental permit. Not complying with these procedures may result in project suspension.
Legal consulting – A key factor to guide investors on the right path
One often underestimated factor but decisive for success of FDI projects in building materials in Vietnam is legal consulting. Vietnam’s market has peculiarities in law, business culture, and administrative mechanism requiring investors to have thorough preparation and professional accompaniment.
Role of legal firms in FDI investment
Advise on optimal investment structure, ensuring investor’s control and financial interests.
Prepare investment dossiers and represent in dealings with governmental bodies.
Check legality of contracts, site, machinery, technology used.
Assist in obtaining and adjusting all necessary permits throughout project lifecycle.
Advise on strategy for handling legal risks, disputes, administrative complaints if present.
DEDICA – A reliable companion for FDI investors
With many years of experience in advising foreign investment, DEDICA is proud to be a legal advisory firm for numerous investors across many different fields. The team of lawyers at DEDICA not only understands Vietnamese law deeply but also business cultural specifics of Western, Korean, Chinese practices, helping FDI clients save time, cost and avoid unnecessary risks.
Investing FDI into environmentally friendly building material manufacturing in Vietnam is a strategic choice in the global sustainable development trend. However, to succeed, investors need not only capital and technology but also legal understanding and a well‑planned implementation roadmap. Let DEDICA accompany you on this journey, from the very first steps to when the project operates stably and sustainably.
Contact DEDICA Law Firm for in‑depth legal consultation!
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