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| Electronic components being produced at Sumida Co. Ltd. (Japan) in Tinh Phong Industrial Park, Quang Ngai province__Photo: VNA |
The Government on September 3 issued Decree 239/2025/ND-CP (Decree 239) amending a number of articles of Decree 31/2021/ND-CP (Decree 31) detailing and guiding a number of articles of the Investment Law.
The new decree, taking effect on the date of its signing, contains notable new provisions concerning determination of geographical areas eligible for investment incentives in case of change of administrative boundaries; incentives for digital technology parks; application of e-dossiers in administrative procedures; and simplification of procedures for approving investment policy and granting investment registration certificates.
The decree not only helps address bottlenecks in reality but also reaffirms the Government’s determination to reform institutions and create an open business environment for investors.
Determination of geographical areas eligible for investment incentives based on two-tier local administration model
Article 21 of Decree 31 set out principles for determining geographical areas eligible for investment incentives in case new administrative units are established under resolutions of the National Assembly Standing Committee or the Government due to the rearrangement or adjustment of boundaries of commune-level administrative units in areas with different socio-economic conditions. However, this provision applied to district-level administrative units that are no longer organized in the system of administrative units.
Therefore, the new decree makes amendments to this provision for determination of geographical areas eligible for investment incentives with regard to commune-level administrative units established as a result of the rearrangement of administrative units and the organization of the two-tier local administration system.
Specifically, commune-level administrative units of district-level administrative units that were classified as geographical areas with extremely difficult socio-economic conditions before the rearrangement are now regarded as geographical areas with extremely difficult socio-economic conditions. Meanwhile, commune-level administrative units of district-level administrative units that were classified as geographical areas with difficult socio-economic conditions before the rearrangement are now treated as geographical areas with difficult socio-economic conditions.
Particularly, commune-level administrative units formed from multiple commune-level administrative units in geographical areas with different socio-economic conditions before the rearrangement are now regarded as geographical areas eligible for investment incentives based on the majority of the number of commune-level administrative units currently enjoying the incentives.
If the number of commune-level administrative units in geographical areas with extremely difficult socio-economic conditions is equal to the number of commune-level administrative units in geographical areas with difficult socio-economic conditions, the newly established commune-level administrative units are determined as geographical areas with extremely difficult socio-economic conditions.
If the number of commune-level administrative units in geographical areas with difficult socio-economic conditions is equal to the number of commune-level administrative units in geographical areas ineligible for investment incentives, the newly established commune-level administrative unit are determined as geographical areas with difficult socio-economic conditions.
If the number of commune-level administrative units in geographical areas with extremely difficult socio-economic conditions is equal to the number of commune-level administrative units in geographical areas ineligible for investment incentives, the newly established administrative units are determined as geographical areas with extremely difficult socio-economic conditions.
For commune-level administrative units established under resolutions of the National Assembly Standing Committee on the basis of division, separation or upgrading of old administrative units currently in geographical areas eligible for investment incentives, or due to the rearrangement or adjustment of boundaries of commune-level administrative units in geographical areas with different socio-economic conditions, their eligibility for investment incentives will be determined as for commune-level administrative units formed from multiple commune-level administrative units in geographical areas with different socio-economic conditions before the rearrangement as mentioned above.
Provincial-level People’s Committees will determine and announce their commune-level geographical areas eligible for investment incentives and those eligible for special investment incentives, and send information thereon to the Ministry of Finance for monitoring and summarization.
Addition of regulations on incentives for digital technology parks
For the first time, the term “digital technology park” is included in the provisions on investment registration, placing it on par with industrial park, export processing zone and hi-tech park in terms of incentives, procedures and management mechanisms.
Under Article 1.3 of the new decree, if a digital technology park established under the Government’s regulations is approved by a competent authority to be removed from a master plan or permitted to be repurposed, or if the operation of an investment project on construction and commercial operation of infrastructure of a digital technology park is terminated under the investment law, other investment projects implemented in the digital technology park continue to enjoy investment incentives stated in their investment licenses, business licenses, investment incentive certificates, investment certificates, investment registration certificates, investment policy decisions, investment policy approval decisions or other documents of the competent state agencies or in accordance with the relevant regulations effective at the time of investment in such industrial parks, export processing zones or digital technology parks.
Investment procedures
Electronic copies and digital signatures required for dossiers for investment procedure performance
Decree 239 adds provisions requiring investors to submit electronic copies of their dossiers for performance of investment procedures. It states that electronic copies of dossiers must contain digital signatures as specified by the law on e-transactions and these electronic copies are of the same legal validity as paper dossiers submitted to the Ministry of Finance and the investment registration agency. Investors are held responsible for the accuracy, consistency and completeness of contents of paper dossiers and electronic dossiers they have submitted. In case of a discrepancy between a paper dossier and its electronic copies, the paper dossier will be used as a valid one.
The Ministry of Finance and the investment registration agency have to publicize addresses and method(s) of receiving electronic dossiers from investors on the National Investment Portal, the Portal of the Ministry of Finance, and portals of local state management agencies in charge of investment.
Currently, under Decree 31, investors can choose to submit their dossiers for settlement of administrative procedures in person, online or by post.
Shortened time limit for grant of investment registration certificates
Under the new decree, the investment registration agency will issue an investment registration certificate to the applying investor within 10 days after receiving a valid dossier, down by five days compared to the 15-day time limit specified in Decree 31.
The total time limit for investment policy approval under the new decree is also much shorter than that specified in Decree 31 (38 days against 65 days, for projects subject to the Prime Minister’s investment policy approval).
For projects subject to investment policy approval by provincial-level People’s Committees (including also projects in industrial parks, export processing zones, hi-tech parks or economic zones) the new time limit is 26 days (against the current 50 days).
Decree 239 also adds procedures for investment policy approval for a project that is subject to investment policy approval by two or more provincial-level People’s Committees. Specifically, the investor will carry out procedures for investment policy approval in the locality where the majority of the land area is proposed for use by the project or where the project’s main work will be constructed or where most of the project’s activities will be carried out. The provincial-level People’s Committee of the locality where the investor submits the dossier of application for investment policy approval will consult related provincial-level People’s Committees for use as a basis for considering investment policy approval for the whole project.
For a project for which investor selection is proposed to take the form of land use rights auction or bidding, the provincial-level People’s Committee of the locality where the project is proposed for implementation will, in coordination with related agencies and localities, organize land use rights auction or bidding for investor selection in accordance with the land and bidding laws.
The investment policy approval decision will serve as a basis for land allocation, land lease or land repurposing for the whole land area for implementation of the project.
Amended provisions on construction and commercial operation of infrastructure of industrial parks, export processing zones, hi-tech parks and economic zones
Under the new decree, the construction and commercial operation of infrastructure of industrial parks, export processing zones and digital technology parks must conform to the approved master plans on construction of industrial parks, export processing zones and digital technology parks.
For geographical areas with difficult socio-economic conditions, based on local conditions, provincial-level People’s Committees will propose the Prime Minister to decide to establish, or assign revenue-earning non-business units to act as investors of projects on construction and commercial operation of, infrastructure of industrial parks, export processing zones and digital technology parks.
Investors in projects on construction and commercial operation of industrial parks, export processing zones, hi-tech parks, digital technology parks and functional quarters in economic zones may:
- Construct workshops, offices and warehouses for sale or lease;
- Set land rental rates, rental rates for sub-leased land with constructed technical infrastructure; infrastructure use charges; rental and sale rates for workshops, offices and warehouses, and other service charges as specified by law; and register charge frames and infrastructure use charges with management units of industrial parks, export processing zones, hi-tech parks, digital technology parks and economic zones every six months or upon adjustment of the registered prices and charges;
- Collect infrastructure use charges;
- Transfer land use rights, lease land and sub-lease land with constructed technical infrastructure in industrial parks, export processing zones, hi-tech parks, digital technology parks, as well as functional quarters in economic zones to other investors in accordance with the land law and the law on real estate business; and,
- Carry out other activities in accordance with the Investment Law, Decree 239, the Government’s regulations on industrial parks, export processing zones, hi-tech parks, digital technology parks and economic zones, and other relevant regulations.
Revised list of sectors and trades eligible for investment incentives
Appendix II to the new decree provides a modified list of sectors eligible for investment incentives, adding new sectors in the fields of science, technology, innovation, national digital transformation, and human resource development to be eligible for investment incentives. These include:
(i) Investment in water plants, power plants, water supply and drainage systems; bridges and roads;
(ii) Building, operation and management of railway infrastructure, railway transport business, railway industry, and training of railway human resources;
(iii) Airports, seaports, and inland waterway ports; and,
(iv) Aerodromes, terminals, and other particularly important infrastructure facilities as decided by the Prime Minister.- (VLLF)
