Cutting conditional business lines under revised Investment Law

According to Dr. Bui Quy Thuan, Head of the General Research Division at the Vietnam Industrial Park Finance Association (VIPFA), the revised Investment Law 2025 introduces a number of notable changes, among which the reduction of conditional business lines stands out as a key highlight for investors.

Specifically, compared to the 2020 Investment Law, Appendix IV of the 2025 Investment Law has removed or revised the scope of several conditional business lines, including: tax procedure services; customs procedure services; insurance auxiliary services; labor outsourcing services; commercial inspection services; temporary import and re-export of frozen food; and temporary import and re-export of used goods on the restricted list.

Article 7 of the 2025 Investment Law also stipulates that the Government shall publish a list of conditional business lines that require licensing or certification prior to operation, as well as a list of sectors where management will shift from pre-licensing to public disclosure of business conditions, subject to post-audit supervision.

Another noteworthy change in the 2025 Investment Law is that foreign investors are no longer required to have an investment project before establishing an enterprise. Commenting on this provision, Dr. Bui Quy Thuan noted that Clause 2, Article 19 allows foreign investors to establish enterprises without a prior investment project, provided that market access conditions are met.

Specifically, foreign investors may establish an economic organization to implement an investment project before carrying out procedures for issuance or adjustment of the Investment Registration Certificate, but they must comply with market access requirements applicable to foreign investors.

“Under the previous regulation, an investment project had to be in place before an enterprise could be established. The 2025 Investment Law now allows foreign investors to set up an enterprise without a prior project, as long as market access conditions are satisfied,” Dr. Bui Quy Thuan explained.

A “boost” to attract foreign capital

Expressing positive views on the revised Investment Law, Lawyer Nguyen Hong Chung, investment policy expert and Chairman of DVL Lawfirm, said that with the 2025 Investment Law, Vietnam is shifting from procedure-based management to standards- and data-based governance; decentralizing authority for faster decision-making; strengthening post-audit mechanisms to enhance market flexibility; and creating “green lanes” for strategic projects to move faster while meeting higher standards.

According to Lawyer Nguyen Hong Chung, the opportunity for Vietnam to attract investment under the revised law is substantial, as this round of reform directly addresses key bottlenecks such as time, predictability and compliance costs. However, ultimate success will depend on implementation, including detailed guidance, inter-agency coordination, effective post-audit discipline and the capacity of local authorities.

“When these elements operate in sync, the 2025 Investment Law will not merely be a new legal document, but could serve as an institutional ‘trigger’ enabling Vietnam to unlock capital flows and improve project quality in a new competitive cycle,” he affirmed.

Also sharing views with the Newspaper of Industry and Trade, Hong Sun, Honorary Chairman of the Korea Chamber of Business in Vietnam (KOCHAM), described the promulgation of the revised Investment Law in December 2025, effective from March 2026, as a highly timely move.

“Among the new provisions, I highly appreciate the simplification of post-audit procedures and the special incentives for mega projects and research and development (R&D) projects. Institutionalizing new investment support mechanisms to replace traditional tax incentives under global minimum tax rules will help Vietnam retain major investors,” Hong Sun noted.

He added that from a competitiveness perspective, the 2025 Investment Law sends a strong message that Vietnam is proactively adapting to global rules.

“These new provisions will remove legal procedural bottlenecks, significantly shorten the timeline from registration to project commencement, and create a competitive edge over other countries in the region,” the Honorary Chairman of KOCHAM said.