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| An advertising campaign by Metfone, Viettel’s telecommunications brand in Cambodia__Photo: VNA |
The Ministry of Finance (MOF) has proposed abolishing the requirement for investment policy approval of outbound projects, which currently falls under the authority of the National Assembly and the Prime Minister. The proposal, included in the draft revised Law on Investment now open for public comment, is aimed at streamlining administrative procedures, cutting compliance costs, and reducing processing time.
According to the ministry, the reform would help enhance the competitiveness of Vietnamese enterprises and enable them to take advantage of overseas investment opportunities more swiftly.
Under the current Law on Investment, overseas investment is governed under a mechanism in which competent authorities define prohibited and conditional business sectors and grant overseas investment registration certificates. Particularly, projects valued at VND 20 trillion (USD 800 million) or higher, or those subject to special policy mechanisms, must secure approval from the National Assembly. Meanwhile, projects worth VND 800 billion (USD 32 million) or more, as well as those in the banking, insurance, securities, press, broadcasting, television, and telecommunications with an investment capital amount of at least VND 400 billion (USD 16 million), must seek approval from the Prime Minister.
The current appraisal process for each outbound investment project involves assessing the necessity of the project and potential risks in the host country, along with examining criteria such as type, scale, location, and implementation schedule of, and policies applicable to, the project. According to the MOF, however, this mechanism has become outdated, as it creates barriers that limit investors’ ability to seize opportunities abroad. To address this, the draft suggests shifting from the existing approval process to a simpler system under which investors would register their overseas fund transfers directly with the State Bank of Vietnam (SBV).
Further explaining the rationale for the change, the MOF said the management of overseas investment would become more substantive and practical under the new approach. By the time investors register with the SBV, they would already hold written approvals from host countries, such as investment licenses, business establishment certificates, or capital contribution and share purchase contracts. In other words, their projects are already close to implementation.
Moreover, the proposed approach is expected to strengthen state management by enhancing oversight of foreign exchange activities. In particular, the SBV would be able to promptly compile statistics and monitor both the disbursement of investment capital and the repatriation of funds through the banking system, ensuring timely assessments and adjustments when impacts arise on the balance of payments or foreign exchange reserves. At the same time, the banking system could respond quickly to cases of non-compliance with reporting requirements, including by suspending outward fund transfers or freezing investment capital accounts in urgent situations.
The MOF noted that since the SBV already serves as the managing agency for indirect overseas investment, extending its mandate to cover also direct overseas investment would be appropriate, as it allows for comprehensive monitoring of outward capital flows. The ministry added that the SBV’s verification of capital transfers would also help strengthen anti-money laundering efforts.
According to the Foreign Investment Agency, as of the end of July 2025, Vietnam had 1,928 valid overseas investment projects with total registered capital of more than USD 23.15 billion. Laos remained the largest recipient, attracting over USD 5.8 billion across 275 projects, followed by Cambodia with USD 2.94 billion across 219 projects.- (VLLF)
