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| Production activities at the branch of Toyoda Gosei Hai Phong Co., Ltd. in Tien Hai industrial park, Hung Yen province __Photo: VNA |
To implement the tasks set out in Politburo Resolution 10-NQ/TW on development of the foreign-invested economic sector, the Ministry of Finance (MOF) has released the second draft of a law amending the 2025 Law on Investment.
The proposed revisions focus on issues that directly affect foreign investors’ market entry and project implementation, particularly market access conditions, scope of special investment procedures, and legal obstacles facing projects that use sea areas assigned by the State.
Easing market access for foreign investors
Under the draft, the Government would be empowered to consider easing market access conditions in the sectors and fields in which market access restrictions on foreign investors are currently imposed, depending on socio-economic conditions and state management requirements in each period. Any relaxation, however, would have to ensure publicity, transparency, consistent application of law, and non-discrimination among investors.
It is worth noting that the proposal does not envisage opening all restricted sectors at once or removing all existing conditions. Instead, adjustments would continue to be considered on a sector-by-sector basis, taking into account regulatory requirements, national defence and security, and national interests.
The draft also signals a broader approach to assessing foreign-invested projects. Rather than focusing solely on committed capital, authorities would consider factors such as a project’s contribution to supply chain development, workforce training, state budget revenue, environmental protection and domestic technological capacity.
In addition, the draft proposes introducing criteria for assessing the economic efficiency of foreign-invested projects. Such criteria could help change the way localities evaluate the effectiveness of investment promotion, shifting attention away from simply competing for higher numbers of projects and larger volumes of registered capital.
Extending the “green lane” beyond functional zones
Alongside changes to market access conditions, the draft proposes expanding eligibility for special investment procedures under the “green lane” mechanism.
Under Article 28 of the 2025 Law on Investment, investors may opt for special investment procedures for projects implemented in industrial parks, export processing zones, hi-tech parks, digital technology zones, free trade zones, international financial centres, and functional zones within economic zones. The mechanism would apply to projects regardless of sector or field, except those required to obtain investment policy approval under the Government's regulations.
To facilitate priority investment projects located outside the above zones, the draft proposes extending the mechanism to projects in sectors and fields eligible for special investment incentives and support, provided that the projects are implemented in land areas managed by state agencies or organisations.
The proposal is intended to institutionalise policies providing special procedures for large-scale strategic technology projects with inter-regional impacts and the capacity to lead supply chains, as well as hi-tech projects involving commitments on transfer of technology to Vietnamese enterprises.
The “green lane”, however, would not mean lowering standards or lessening investor responsibility. According to the MOF, reducing pre-licensing inspections would need to be accompanied by stronger post-licensing supervision, clearer investor responsibilities and measures to address commitment failure.
Removing obstacles for projects using sea areas
The draft proposes allowing competent authorities to simultaneously grant investment policy approval and investor approval for sea-use projects that are “not subject to auction or bidding in accordance with law”.
At the same time, the Government would be tasked with setting out explicit criteria for procedural exemptions applicable to household-level aquaculture and small-scale recreational activities. Those criteria would include project scale, type of activity and environmental impact. Nevertheless, if the scope of exemptions is too broad, it could create gaps in regulatory oversight. Conversely, overly stringent criteria could undermine the goal of simplifying procedures for citizens.- (VLLF)
