Notable Features of the 2020 Law on Investment (amended and supplemented 2025)
- Le Hoang Anh
- Oct 4
- 6 min read
▪ Email: info@minhthienlaw.com | Website: minhthienlaw.com ▪Address: Commercial and services area, Room 0.03, Block A, Himlam Riverside, Hoang Trong Mau Street, Tan Hung Ward, Ho Chi Minh City ▪ Phone number: 0913 865 900 ; 09 77 33 77 99 |
The 15th National Assembly adopted Law No. 90/2025/QH15 amending and supplementing to Law on Bidding, Law on Public-Private Partnership Investment, Law on Customs, Law on Value-Added Tax, Law on Export and Import Duties, Law on Investment, Law on Public Investment, and Law on Management and Use of Public Property, officially effective from 01 July, 2025. Accordingly, the 2020 Law on Investment has also been amended and supplemented in accordance with the current development and cooperation in investment fields. This article summaries key highlights of the 2020 Law on Investment (amended and supplemented 2025).
A. EXPANSION OF BUSINESS LINES ELIGIBLE FOR INVESTMENT INCENTIVES; ADDITION OF SPECIAL INVESTMENT INCENTIVES AND ASSISTANCE; AND ADDITION OF AREAS ELIGIBLE FOR INVESTMENT INCENTIVES
Firstly, regarding the expansion of business lines eligible for investment incentives.
The 2020 Law on Investment (amended and supplemented 2025) expands the business lines eligible for investment incentives stipulated in Clause 1, Article 16 of the 2020 Law on Investment, specifically including the following business lines:
(1) Investment in and construction of infrastructure systems of big data centers, cloud computing infrastructure systems, 5G or higher mobile network infrastructure systems, and other digital infrastructure systems.
(2) Investment in strategic technologies and manufacturing of strategic technology products.
(3) Investment in innovation and digital transformation as prescribed by the law on science, technology and innovation.
(4) Training human resources in the fields of science, technology, innovation and digital transformation.
(5) Manufacturing of digital technology products, provision of digital technology services.
Secondly, regarding the addition of special investment incentives and assistance.
Business lines (1) and (2) are also simultaneously added as subjects for the application of special investment incentives and assistance stipulated in Point a, Clause 2, Article 20 of the 2020 Law on Investment. Similar to the previous subjects, business lines (1) and (2) , to be eligible for special investment incentives, must meet the condition of having a total investment capital of at least VND 3,000 billion and disbursing at least VND 1,000 billion within three years from the issuance date of the Investment Registration Certificate (IRC) or Investment Policy Approval.
Futhermore, the 2020 Law on Investment (amended and supplemented 2025) also adds subjects for the application of special investment incentives and assistance, specifically cases where projects meet a total investment capital scale of at least VND 6,000 billion of which at least VND 6.000 billion is disbursed within 05 years from the issuance date of the IRC or Investment Policy Approval, including: Projects on investment in manufacturing of key digital technology products, projects on research and development, design, manufacturing, packaging and testing of microchips; Projects on construction of AI data centers, as prescribed by the law on digital technology industry.
Thirdly, regarding the addition of areas eligible for investment incentives.
Previously, Trước đây, areas eligible for investment incentives included disadvantaged areas and extremely disadvantaged areas, industrial parks, export-processing zones, hi-tech zones and economic zones. Currently, in addition to the bove areas, concentrated digital technology zones are also added. Accordingly, investment projects in this areas are eligible for investment incentives.
It is evident that the State is adopting a policy to orient investment flows and attract investment into key, highly strategic sectors such as science, technology, and digital transformation. This is a crucial step in the context of transforming the growth model towards a digital economy, green economy, and sustainable development.
B. CHANGE IN AUTHORITY FOR INVESTMENT POLICY APPROVAL
The change in the authority for Investment Policy Approval tends towards decentralization from the central to local level, from higher to lower authorities. Some investment projects that previously fell under the Investment Policy Approval authority of the National Assembly now fall under the authority of the Prime Minister after the amendments and supplements. Some investment projects that previously fell under the Investment Policy Approval authority of the Prime Minister now fall under the authority of the Provincial People's Committee after the amendments and supplements.
According to Point a, Clause 1, Article 30 of the 2020 Law on Investment, the National Assembly approved the investment policy for nuclear power plants investment projects. However, this point has been repealed and added to Point g2, Clause 1, Article 31 of the 2020 Law on Investment (amended and supplemented 2025), falling under the Investment Policy Approval authority of the Prime Minister.
Investment projects under the Investment Policy Approval authority of the Prime Minister, stipulated in Points a, b, c, d, đ, g, h, Clause 1, Article 31 of the 2020 Law on Investment, such as investment projects on petroleum processing; new investment projects on passenger air transport business; Investment projects on construction of ports and wharves of special seaports, or class I seaports; etc. are now amended and supplemented to become investment projects under the Investment Policy Approval authority of the Provincial People's Committee.
The addition of authority for the Provincial People's Committee to approve the investment policy for some important projects, which previously only the Prime Minister had the authority to approve, not only creates conditions for localities to be proactive and flexible in investment attraction and management activities but is also a step consistent with the trend of administrative procedure reform, promoting the effective implementation of investment policies.
C. AMENDMENT AND SUPPLEMENTATION OF THE LIST OF CONDITIONAL BUSINESS LINES
The 2020 Law on Investment (amended and supplemented 2025) adds two business lines to the List of Conditional Business Lines stipulated in Appendix IV of the 2020 Law on Investment, including Provision of crypto assets-related services and Personal data processing services.
Furthermore, the 2020 Law on Investment Law (amended and supplemented 2025) also removes the business line of urban railway business from the this List.
The addition of two business lines to this List demonstrates the timely updating of the law in the context of the strong development of the digital economy and the need for personal data protection. Thereby, the State can ensure strict management while not hindering the development of these fields.
D. SHORTENING THE PROCESS FOR ESTABLISHING AN ECONOMIC ORGANIZATION FOR STRATEGIC PROJECTS
According to Point c, Clause 1, Article 22 of the 2020 Law on Investment, foreign investors must have an investment project and carry out procedures for the issuance or adjustment of the Investment Registration Certificate (IRC) before establishing an business organization.
However, the 2020 Law on Investment (amended and supplemented 2025) adds Point d to Clause 1, Article 22 of the 2020 Law on Investment, allowing foreign investors in projects on investment in establishment of innovation centers, research and development centers, projects on investment in and construction of infrastructure systems of big data centers, cloud computing infrastructure systems, 5G or higher mobile network infrastructure systems, and other digital infrastructure systems; and projects on investment in strategic technologies and manufacturing of strategic technology products to establish an business organization to implement the investment project before carrying out the procedures for the issuance or adjustment of the Investment Registration Certificate (IRC).
This new regulation helps reform investment procedures for projects on large-scale and pioneering technology, aiming to shorten the implementation time and create an attractive investment environment for foreign investors in these projects.
These are the notable amendments and supplements to the 2020 Law on Investment. These changes mark a significant step forward in completing the legal framework for investment in Vietnam, especially in the fields of science, technology, and digital transformation. These changes promise to create a strong impetus for attracting high-quality investment capital, thereby promoting the development of Vietnam's digital economy in the near future.
Read this article as a printed matter: Vietnamese | English
Disclaimer:
This article
reflects the author's subjective viewpoint on the main topic mentioned in this article, providing the best reference value at the time of publishing;
is not considered the viewpoint or opinion of any state agency in any case; and
does not constitute legal advice from Minh Thien Law and should not be applied to resolve any specific legal situation.
For more detailed information, please contact: info@minhthienlaw.com | 09 77 33 77 99 - 0913 865 900
Comments