The approval of an investment policy for a company in Vietnam is contingent upon satisfying several key regulatory conditions. Before starting construction, investment projects need to go through a strict licensing process. The law stipulates different conditions for approval of investment policies, which businesses must meet before proceeding with operations. In this article, Viet An Law will clarify the conditions for investment policy approval in Vietnam according to current law.
Table of contents
According to Clause 1, Article 3 of the Investment Law 2020, investment policy approval is the competent state agency’s approval of the project’s objectives, location, scale, progress, and duration; investor or form of investor selection and special mechanisms and policies (if any) to implement investment projects before investment registration in Vietnam.
Regulations in Articles 30, 31, and 32 of the Investment Law 2020 regarding the authority to approve investment policies, the application for approval will be sent to the correct state agency with approval authority according to the table below:
| Authorization | Investment Project |
| The National Assembly | – Having greatly affect the environment or have the potential to seriously affect the environment;
– Repurposing of land meant for wet rice cultivation with 02 or more crops of at least 500 hectares; – Relocation of 20,000 people or more in mountainous areas or 50,000 people or more in other areas; – Application of a special mechanism or policy that needs to be decided by the National Assembly. |
| Prime Minister | The remaining projects have the following conditions:
– One of the cases specified in Clause 1, Article 31 of the Investment Law 2020 regardless of capital source; – For the provision of telecommunications services with network infrastructure; afforestation; publication, press; – Belong the power of at least two provincial People’s Committees to approve investment guidelines simultaneously; |
| Provincial People’s Committees | The remaining projects have the following conditions:
– Allocate land or lease land without auction, bidding for or receipt of land use rights purpose; – Construction of residential housing and urban areas in the following cases: use at least 50 hectares of land or less than 50 hectares of land but with a population of at least 15,000 people in an urban area; or that use at least 100 hectares of land or less than 100 hectares of land but with a population of at least 10,000 people in a non-urban area; – Golf course construction and business; – Executed on islands or in border or coastal communes; in other areas affecting national defense and security. |
Pursuant to Article 33 of the Investment Law 2020, conditions for approval of investment policy:
| No | Document name | Implementing subject |
| 1 | An application form for the execution of the investment project | Viet An Law operates based on the content provided by clients |
| 2 | A document on the investor’s legal status | Client |
| 3 | A document proving the investor’s financial capacity | Client |
| 4 | Proposal for the investment project | Viet An Law operates based on the content provided by clients |
| 5 | A copy of the document regarding the land use rights identifying the right to use the location for execution of the investment project | Client |
| 6 | Contents of the explanation for the technology (if any); | Viet An Law operates based on the content provided by clients |
| 7 | BCC contract for investment projects (if any); | Client |
| 8 | Other documents related to the investment project, conditions and capacity requirements of the investor according to the provisions of law (if any) | Client |
| 9 | Power of attorney for Viet An Law | Viet An Law operates based on the information provided by clients |
If you have any other legal problems related to the conditions for investment policy approval in Vietnam, please contact Viet An Law for more specific and detailed advice. Thank you!
