Conditions for investment policy approval in Vietnam
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.
Legal basis
- Law on Investment 2020;
- Decree 29/2021/ND-CP regulating the order and procedures for appraisal of nationally important projects and investment supervision and assessment.
What is investment policy approval?
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.
The project must apply for investment approval
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. |
Conditions for investment policy approval in Vietnam
Pursuant to Article 33 of the Investment Law 2020, conditions for approval of investment policy:
Conditions for investors
- Domestic investors need to meet the conditions of legal status, i.e. they must be established according to the regulated forms and procedures;
- Investors must ensure financial capacity throughout the project implementation process;
- Market access conditions for foreign investors such as conditional business lines and forms of business establishment;
Conditions for investment projects
- Proposal of investment project or pre-feasibility study report;
- Having land use right certificate;
- The compatibility of the investment project with national/ regional/ provincial/ urban, and special administrative-economic unit planning (if any);
- Socio-economic efficiency of investment projects such as environment;
- Investment incentives and conditions for enjoying investment incentives such as corporate income tax incentives, including applying a corporate income tax rate lower than the normal tax rate for a term or the entire real-time current investment project; Tax exemption, tax reduction, and other incentives according to the provisions of the law on corporate income tax;
- Technology or receiving technology transfer suitable for investment projects;
- Conformity of the investment project with the objectives and orientation for urban development, and residential housing development programs and plans.
Application for investment policy approval in Vietnam
| 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 |
Note on number of submitted dossiers
- For projects under the investment policy approval authority of the National Assembly: 20 sets of documents.
- For projects under the Prime Minister’s investment policy approval authority: 8 sets of documents.
- For projects under the investment policy approval authority of the Provincial People’s Committee: 4 sets of documents.
Approval of investment policy service in Vietnam of Viet An Law
- Specific and detailed consulting on conditions for establishing investment projects and conditions for approval of investment policies according to current legal regulations;
- Consulting on application documents for investment policy approval;
- Representing clients to carry out procedures for approval of investment policies;
- Consulting on applying for Investment Registration Certificate, Enterprise Registration Certificate after investment policy approval;
- Sub-license application services related to the business fields of the enterprise;
- Regular legal advice for businesses during their operations.
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!
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