In recent years, Vietnam has continuously reformed its investment environment to attract foreign direct investment (FDI) enterprises. A significant step forward is the issuance of Law No. 57/2024/QH15 by the National Assembly, which introduces several incentives to waive or simplify investment procedures, thereby shortening the project implementation timeline for certain specialized sectors.
Which FDI projects are eligible for special investment procedures in 2025?
Law No. 57/2024/QH15, effective from January 15, 2025, stipulates that special investment procedures will be applied to FDI projects in two key categories:
Projects in semiconductor, electronic circuitry (IC), and flexible electronics (PE):
- Projects involving the construction of innovation centers and research & development (R&D) centers.
- Investments in semiconductor integrated circuit manufacturing industries, component design and manufacturing technologies, integrated electronic circuits (IC), flexible electronics (PE), chips, and semiconductor materials.
High-Tech projects:
High-tech projects prioritized for development, of which products listed in the catalog of high-tech products encouraged for development as determined by the Prime Minister.
According to Law No. 57/2024/QH15, projects in the semiconductor and electronic circuit industries will benefit from special investment procedures, promising to significantly shorten project timelines and minimize administrative formalities.
What are special investment procedures?
For projects eligible for special investment procedures under Law No. 57/2024/QH15, FDI investors can opt to register their investments using the new streamlined procedures for projects located in industrial parks, export processing zones, or concentrated high-tech zones, etc. The investment registration dossier must include: A written commitment to comply with the conditions, standards, and regulations set forth in Vietnamese law regarding construction and fire prevention and control (PCCC); A project proposal that identifies and forecasts environmental impacts and outlines mitigation measures to replace the preliminary environmental impact assessment.
Submission locations for investment registration dossiers
Investment registration dossiers are submitted to the Management Boards of industrial parks, export processing zones, high-tech parks, or economic zones.
Processing Time
The processing time for investment registration dossiers is 15 days.
According to evaluations by the Vietnam Chamber of Commerce and Industry (VCCI), special investment procedures are a distinct process for implementing investment projects. These procedures eliminate numerous permits and transition from a “pre-approval” to a “post-approval” management model, significantly reducing the time required to implement projects. The approach is expected to attract more investors in high-tech sectors. VCCI has also proposed establishing a step-by-step framework for special investment procedures, covering all stages from preparation to operation. This framework should clearly specify which procedures are exempt and which must be carried out to ensure convenience for investors while providing a basis for regulatory agencies to effectively oversee the projects.
See also: Trends in the development of high-tech industry in Vietnam
See also: Types of taxes in Vietnam and tax incentives for FDI enterprises
