What is the Amended Investment Law?
The Investment Law 2025 (Law No. 143/2025/QH15) aims to simplify regulations and attract Foreign Direct Investment (FDI) in Vietnam, especially in priority areas such as science, green economy, high-value manufacturing, semiconductors, and AI.
With the New Investment Law, you can now establish a legal entity in Vietnam before obtaining an Investment Registration Certificate (IRC). This cuts down registration by 3 days, Direct Investment Capital Account (DICA) opening without IRC, and parity with domestic firms.
Important Timeline:
The law becomes officially effective on March 1, 2026. While the core framework is approved, implementation will be further clarified by upcoming government Decrees.
Key Highlights of the New Investment Law
Moving from “Pre-approval” to “Post-check”
These changes reduce administrative barriers, restructure incentives, and streamline approvals. You can benefit from faster market entry and targeted support in high-tech sectors.
Reduction of Sub-licenses
Vietnam has abolished business conditions for several sectors, including tax and customs services, labor outsourcing, and cold storage logistics.
You simply declare your compliance and start operating immediately; authorities will conduct inspections later.
Entity Establishment First
Previously, you needed an Investment Project (IRC) before you could incorporate a company (ERC). With the new Investment Law, you can now establish your legal entity first allowing you to:
- Hire staff
- Sign contracts
- Market your brand
“Fast-Track” Zone Procedures
Projects located in Industrial Parks, High-Tech Zones, or Free Trade Zones are now EXEMPT from obtaining the following:
- Construction Permits
- Fire Safety Approvals
- Environmental Impact Assessment (EIA)
A simple “Compliance Commitment” is all that’s required, saving you at least 6 to 12 months of waiting.
Capital & Tech Flexibility
You no longer need to undergo tedious “Investment Policy Adjustment” procedures when changing your total investment capital (even if it increases by over 20%) or updating your production technology.
Flexible Project Lifespan
You don’t have to wait until the end of a project to ask for an extension. You now have the right to increase or decrease the project duration at any time to better align with your financial plans and market strategy.
Simplified Project Transfer and Exit Strategy
The scope for transferring investment projects has been widened. It is now much easier to sell, buy, or transfer projects once they have received initial approval, providing a much more flexible exit strategy or profit-realization path.
What Does this Mean for Your Business?
The new investment law in Vietnam simplifies market entry in the country. It allows you to establish a legal entity without needing an IRC and abolishes licensing for 38 conditional sectors and shifts to post-inspection compliance. This enables faster operations with greater autonomy for foreign investors.
How We Can Help You Get Started
Emerhub can help you make the most out of the Amended Investment Law in Vietnam while remaining fully compliant with the country’s corporate laws.
Market Entry Strategy
Provide end-to-end incorporation services from the initial consultation to obtaining your company’s incorporation papers.
Post-check Compliance
Drafting “Compliance Commitments” and managing inspections for seamless operations.
Zone Optimization
Identifying “Fast-track” zones and handling the specialized Commitments for High-Tech projects.
Stay up-to-date with the latest corporate regulations
Build your Business in Vietnam with Emerhub
FAQs About the New Investment Law in Vietnam
While your initial setup will follow current rules, your company will automatically gain the new flexibilities regarding capital adjustments, project lifespan, and simplified transfers as soon as the law takes effect.
By establishing your legal entity (ERC) first, you gain the right to hire employees, sign labor contracts, and secure office space under your company name while your project (IRC) details are still being finalized.
The risk of the post-check mechanism is that you operate based on a declaration. If an inspector finds you are non-compliant later, you could face fines or suspension. Emerhub mitigates this by conducting internal audits for you before any state inspection occurs.
Key sectors include tax and customs agent services, labor outsourcing, and cold storage logistics. In these sectors, you no longer need pre-operating permits—you simply declare compliance and begin.
Under the new law, updating your technology no longer requires the tedious “Investment Policy Adjustment.” This is a major win for manufacturers who need to modernize equipment frequently to stay competitive.
In designated High-Tech or Industrial zones, you are exempt from Construction Permits, Fire Safety Approvals, and Environmental Impact Assessments (EIA). These three processes are typically the longest hurdles in a project timeline.
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