In order to enhance its attractiveness to foreign investors and mobilize additional foreign investment capital, Vietnam is continuing to refine its legal framework on investment. In this context, the amendments to special investment procedures under Decree No. 19/2025/ND-CP and Law on Investment 2025 represent a notable development. This mechanism is designed to facilitate the implementation of certain investment projects classified as special cases by simplifying administrative procedures and increasing flexibility for investors during project operation. This article by PLF aims to provide investors with an overview of the special investment procedures under the new regulations, thereby assisting foreign investors in considering and evaluating investment opportunities in Vietnam.
- Types of investment projects eligible for special investment procedures
Decree No. 19/2025/ND-CP and Law on Investment 2025 introduce a significant change by removing the specific list of projects eligible for the application of special investment procedures. Instead of the previous enumerative approach, these legal instruments adopt a more open framework based on location-based criteria combined with an exclusion mechanism. Accordingly, investors may opt to apply special investment procedures to projects implemented in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, free trade zones, international financial centers, and functional zones within economic zones, except for projects that are subject to investment policy approval procedures as prescribed by the Government.
This approach demonstrates a higher level of generality and flexibility compared to the previous regulations. Previously, in addition to location-based conditions, the law also imposed specific requirements regarding investment sectors and limited the scope of application to certain fields such as innovation centers, research and development (R&D), and the semiconductor and microelectronics industries.
The removal of sector-based restrictions reflects a reform-oriented trend toward broadening accessibility and enhancing investor autonomy, thereby facilitating the selection and implementation of projects under special investment procedures. This is considered an important step forward in promoting investment inflows and strengthening the competitiveness of Vietnam’s investment environment.
- Timeline for implementation of procedures
According to Article 28 of Law on Investment 2025, projects registered under special investment procedures are exempt from carrying out a series of key administrative procedures, such as obtaining investment policy approval, technology appraisal, preparation of environmental impact assessment (EIA) reports, formulation of detailed planning, issuance of construction permits, as well as approvals and clearances in the fields of construction and fire prevention and fighting.
Instead of being required to complete all administrative procedures relating to environmental protection, fire prevention and fighting, and other regulatory matters prior to commencing project operations – ex-ante control mechanism, the legal framework has shifted toward an ex-post supervision mechanism based on the investor’s undertakings. In particular, within the project proposal dossier, the investor is required to submit a written commitment confirming full compliance with applicable legal conditions, standards, and technical regulations relating to construction, environmental protection, and fire prevention and fighting. Subsequently, during the course of project implementation, the investor must carry out the necessary actions to ensure compliance with such commitments. Competent authorities shall rely on the investor’s commitments as stated in the project proposal dossier to conduct inspections, examinations, supervision, evaluation, administrative sanctions, and overall state management of the project.
This change becomes particularly evident when compared to previous regulations. For example, for projects falling under the authority of the Prime Minister for investment policy approval, the approval stage alone could take approximately 65 working days. Under the new mechanism, investors are no longer required to undergo this procedure, thereby significantly shortening the project preparation and implementation timeline.
- Challenges in implementing special investment procedures
Notwithstanding the positive reforms, the application of special investment procedures under Decree No. 19/2025/ND-CP and Law on Investment 2025 also poses a number of challenges for investors.
First, while the relaxation of ex-ante control combined with strengthened ex-post supervision helps shorten market entry timelines, it simultaneously increases risks during the project implementation and operation phases. Procedures that are inherently technical and complex such as environmental impact assessments and compliance with construction standards, are now deferred to later stages, requiring investors to proactively ensure compliance throughout the course of project execution. This may create difficulties or uncertainty for investors, particularly foreign investors, if adequate preparation is lacking, thereby increasing the risk of non-compliance with applicable laws and regulations. Previously, when such procedures were conducted at the initial stage, investors had better opportunities to fully assess feasibility and compliance before making investment decisions.
In addition, a notable practical issue is that guiding circulars and decrees for the implementation of Law on Investment 2025 have not yet been fully promulgated. The absence of detailed regulations on templates, procedures, and implementation mechanisms may lead to uncertainties in practice and potentially delay project execution timelines.
It can be observed that the simplification of administrative procedures and the shift toward a commitment-based, ex-post supervision mechanism may significantly reduce compliance burdens while accelerating the implementation of investment activities in Vietnam. This represents an important reform step, contributing to enhancing the competitiveness of Vietnam’s investment environment in the context of increasingly robust international capital inflows. Nevertheless, investors are advised to carefully assess compliance risks and closely monitor the ongoing development of the legal framework to ensure effective and sustainable project implementation.
Date of writing: 01/04/2026.
This article is based on the laws and regulations in force as of the above-mentioned date and may no longer be applicable at the time of reading due to subsequent legal changes or the specific circumstances of the reader. Accordingly, this article is provided for reference purposes only.
PLF Law Firm
