Detailed analysis of the amendments to the Law on Investment and the Law on Public Investment (Part IV)

The year 2025 marks a significant milestone in Vietnam’s efforts to enhance its economic legal framework, as several key legal instruments officially come into effect. These include the amended Law on Investment, the amended Law on Public Investment, and new policies in the land sector. The new regulations reflect the government’s commitment to administrative reform and transparency, while also creating more favorable conditions for businesses and individuals in investment, land use, and legal procedures.

1. Amended Law on Public Investment: decentralisation, flexibility, and transparency
Effective date: July 1, 2025
Structure: 7 chapters, 103 articles
Focus: Five major policy changes

a) Reform mindset and new governance approach
According to Deputy Minister of Planning and Investment Nguyen Duc Tam, the law reflects a fundamental shift from pre-approval to post-audit control, and from administrative oversight to developmental facilitation. It follows the principle of “local decision, local implementation, local responsibility,” while the central government plays a guiding and supervisory role.

b) Five major reforms
Clear project classification: The law divides projects into four groups—nationally important, group A, B, and C—using clear criteria. Provincial and district People’s Committees now approve group B and C projects.

Flexible capital adjustment: The Prime Minister can reallocate capital among ministries and provinces within approved limits. Local authorities can also adjust allocations internally without higher-level approval.

Capital rollover limit maintained, with exceptions: The 20% rollover limit remains, but up to 50% may be allowed in special cases with competent approval.

Legalization of special mechanisms: Includes separate land clearance projects, lead-province assignment for inter-provincial projects, and entrusted investment via the Bank for Social Policies.

Increased transparency: Agencies must disclose capital allocations, project lists, disbursement progress, and final settlements.

2. Amended Law on Investment: encouraging strategic investment
Effective date: January 15, 2025
Objective: Improve the investment environment and attract strategic capital

a) Establishment of an investment support fund
Article 18a allows for the creation of a fund using revenues from the global minimum tax (BEPS) and other lawful sources, supporting high-tech, semiconductor, innovation, and domestic enterprise projects.

b) Expanded authority for investment approvals
The Prime Minister must approve large-scale projects, such as special seaports with capital of VND 2,300 billion or more, and projects located in protected heritage areas. Meanwhile, provincial authorities may decide on smaller projects, enhancing decentralization.

c) Special investment procedure
Article 36a introduces a streamlined process for eligible projects (e.g. high-tech, innovation, semiconductor). Authorities can issue an investment registration certificate to investors within 15 days and waive several administrative steps, helping reduce project timelines by up to 260 days. Existing projects may also apply if they meet the conditions.

d) Expanded list of conditional sectors
The law adds new sectors requiring conditions:

• Electricity (generation, transmission, retail)
• UAVs and flying equipment
• Antiquities and cultural heritage services
• Data and digital technology (data platforms, analytics)

Lawmakers have harmonized the law with the Law on PPP, the Law on Planning, and the Law on Bidding to create a consistent legal foundation for infrastructure development and public-private partnerships.

Conclusion

The 2025 legal reforms to the Law on Investment, Law on Public Investment, and land policies demonstrate the Vietnamese government’s push toward more effective decentralization, increased transparency, and improved investment and land-use governance.

By granting more authority to local governments, introducing flexible capital management tools, and formalizing special investment frameworks, Vietnam aims to accelerate project implementation, attract private capital, and build a more competitive investment environment.

These reforms lay a legal foundation for advancing national infrastructure, promoting digital public administration, and ensuring effective resource utilization in Vietnam’s next phase of development.

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