In recent years, Viet Nam has attracted a substantial volume of investment capital, among which industrial park projects have become a focal point for both domestic and foreign investors. However, for an investment project to operate sustainably and mitigate potential risks, a thorough understanding of and strict compliance with applicable laws is of paramount importance. Below are five key considerations that investors should take into consideration when implementing an investment project in an industrial park.
1. Legal status of the investor
Prior to commencing an investment project, it is essential to assess whether the investor is legally permitted to conduct investment and business activities. Under Vietnamese law, an investor is defined as an organization or individual carrying out investment and business activities, including domestic investors (which include economic organizations with foreign-invested capital) and foreign investors. Accordingly, when conducting investment and business activities in Viet Nam, investors must satisfy the following conditions:
- Domestic investors: Individuals having full civil act capacity or organizations established in accordance with Vietnamese law.
- Foreign investors: Individuals holding foreign nationality or organizations established under foreign law.
Note: An economic organization with foreign-invested capital is understood as an enterprise, cooperative, union of cooperatives, or other organization conducting investment and business activities in which a foreign investor is a member or shareholder.
2. Investment Capital
Investors are required to clearly determine the scale and structure of investment capital at the project preparation stage, including contributed capital, loan capital, and the capital contribution schedule corresponding to the project implementation timeline in the industrial park. The registered investment capital must ensure feasibility and be consistent with the investor’s actual financial capacity as well as legal requirements, as investment capital serves as a basis for competent authorities to consider licensing, and directly affects capital contribution obligations, capital mobilization, and financial risk management during the implementation and operation of the project.
3. Business lines and investment sectors
When implementing an investment project located in an industrial park, the permitted business lines and investment sectors are more restricted compared to projects located outside industrial parks. This is because industrial parks are specialized zones that are developed and planned to provide favorable conditions for manufacturing, business, and service activities of enterprises. Accordingly, business lines and investment sectors in industrial parks mainly comprise industrial manufacturing activities and services supporting industrial production. Investors are required to review and register business lines that are compatible with the project location in order to obtain approval from the competent authorities.
4. Investment incentives
One of the advantages for investors implementing projects in industrial parks is access to investment incentives. Investors may be entitled to various forms of investment incentives; however, in order to enjoy such incentives, the applicable eligibility conditions must be satisfied, and investors must comply with the prescribed procedures so that their investment projects can lawfully benefit from investment incentives.
5. Matters related to Planning, Land, Environment, Construction, Labor, and Fire Prevention and Fighting
Investors are responsible for complying with regulations on planning, land, environment, construction, labor, and fire prevention and fighting throughout the implementation of the investment project, including:
- Planning and land: To ensure that the project is consistent with the land-use planning of the selected industrial park, investors must carefully complete procedures relating to land lease and the issuance of the land use rights certificate.
- Environment: Investors are required to prepare an environmental impact assessment report or an environmental protection plan, and to commit to complying with environmental standards and technical regulations throughout the project’s operation.
- Construction: Compliance with regulations on construction permits, design, construction, and acceptance of works is necessary to ensure construction quality and occupational safety.
- Labor: Investors must comply with labor law regulations on recruitment, employment, wages, social insurance, health insurance, and unemployment insurance, with particular attention to occupational safety and hygiene requirements.
- Fire prevention and fighting: This is a mandatory and strictly regulated requirement. In many cases, Investors must carry out procedures for appraisal of fire prevention and fighting designs, obtain acceptance of fire prevention and fighting systems before putting works into operation, and regularly inspect and maintain fire prevention and fighting systems.
Implementing an investment project in an industrial park offers investors numerous opportunities; however, it also entails significant legal challenges. A comprehensive understanding of and strict compliance with applicable legal regulations will help investors minimize risks, optimize profits, and ensure the sustainable development of their projects.
Date of publication: 02 January 2026.
The article is based on the current law at the time of recording as above and may no longer be relevant at the time readers access this article due to changes in applicable law and specific cases that the reader wants to apply. Therefore, the article is for reference only.
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