Clearing bottlenecks to accelerate foreign capital into projects

The Ministry of Finance has drafted a law amending and supplementing a number of articles of the Law on Investment to institutionalise tasks set out in Politburo Resolution No. 10-NQ/TW (dated June 8, 2026) on developing the foreign-invested economic sector.

The draft focuses on addressing issues that directly affect market entry and project implementation progress, including market access conditions for foreign investors, the scope of application of special investment procedures, and obstacles related to projects that request the state to allocate marine areas.

Reviewing conditions that have become barriers

Under the draft, based on socio-economic conditions and state management requirements in each period, the government will consider and decide on the easing of market access conditions in sectors and trades with restricted market access for foreign investors.

Such easing must ensure openness, transparency, uniform application, and non-discrimination among investors. This proposal does not mean opening the market across the board or abolishing all existing conditions. The scope of adjustment will still be considered by sector and field, in line with management requirements, national defence, security, and national interests.

The new point is that it creates a legal basis for the government to proactively adjust the level of market opening when practical conditions allow. This design could shorten policy lags in the context of rapid changes in capital flows, technology, and international supply chains, while Viet Nam is shifting its investment attraction focus from quantity to quality and efficiency.

According to the Ministry of Finance’s review, the list of sectors and trades with restricted market access for foreign investors currently includes 10 out of 91 sectors and sub-sectors that require the establishment of joint ventures but do not restrict the foreign ownership ratio.

Under this regulation, foreign investors may own up to 99.9% of the charter capital of an economic organisation, but they must still seek and maintain a domestic partner. This formal requirement may create additional procedures, costs, and market entry time, while making no significant difference to the level of capital control.

This is one of the points that needs to be reviewed in order to distinguish conditions that are truly necessary for management from requirements that are merely formalistic. Conditions that are no longer appropriate may be adjusted according to a roadmap to reduce market entry costs and expand the ability to mobilise capital, technology, and international governance experience.

Resolution No. 10-NQ/TW identifies the foreign-invested economic sector as an important component of the national economy, one that is encouraged to develop over the long term and treated equally and fairly in competition with other economic sectors. However, the resolution also points out that the quality and efficiency of foreign investment attraction remain below their potential, while linkages with domestic enterprises and technology transfer remain limited.

Therefore, easing market access conditions needs to be linked with requirements on technology, the environment, production linkages, added value, and contributions to the economy’s self-reliance. During the drafting of the guiding decree, the Ministry of Finance is expected to coordinate with ministries, sectors, and business associations to continue reviewing areas where conditions can be eased in line with the market-opening roadmap.

Expanding fast-track mechanisms beyond functional zones

Alongside market access conditions, the draft proposes expanding the range of projects eligible to choose special investment procedures under the “green lane” mechanism.

Under Article 28 of Investment Law No. 143/2025/QH15, investors may choose special investment procedures for projects implemented in industrial parks, export processing zones, high-tech parks, concentrated digital technology parks, free trade zones, international financial centres, and functional zones within economic zones. This scope is not limited by sector or field, except for projects that require approval of investment policy as prescribed by the government.

Under this mechanism, investors register on the basis of a commitment to meeting conditions, standards, and technical regulations on construction, environmental protection, fire prevention and fighting, and related requirements. Its application over recent times has received support from investors and management boards of industrial parks and economic zones, as it has helped shorten the time needed to complete procedures.

The draft proposes expanding the mechanism to projects in sectors and fields specified in Clause 2, Article 17 of the Law on Investment, which are eligible for special investment incentives and support, and whose project land falls under the management of state agencies or organisations but lies outside the functional zones mentioned above.

The proposal aims to facilitate projects in priority sectors where investment attraction is needed but whose locations are outside industrial parks, high-tech parks, or economic zones. It also marks a step towards institutionalising the policy of applying special procedures to large-scale strategic technology projects with inter-regional impact and supply-chain leadership potential, as well as high-tech projects committed to transferring technology to Vietnamese enterprises.

However, the “green lane” does not mean exemption from responsibility or lower standards. Streamlining pre-inspection procedures needs to go hand in hand with post-inspection mechanisms, clear regulations on investor responsibilities, and measures to handle cases where commitments are not fulfilled.

The draft also addresses obstacles facing projects that request the state to allocate marine areas. According to the Ministry of Finance, the law on marine area allocation does not yet provide for investor selection, while the Law on Investment does not fully cover cases in which investment policy approval is granted concurrently with investor approval for this type of project.

To remove this obstacle, the draft adds the case of projects “not subject to auction or bidding under the law”, creating a basis for competent agencies to consider approving investment policy concurrently with approving investors.

The draft also proposes authorising the government to define a number of cases which would be exempt from investment policy approval procedures. The aim is to exclude small-scale activities by individuals and households, such as aquaculture or small entertainment services, so as to avoid applying the same process to both large investment projects and small-scale livelihood activities.

The proposals to ease market access conditions, expand the “green lane”, and complete procedures for projects using marine areas all seek to reduce unnecessary barriers while still ensuring management requirements. The effectiveness of these policies will depend on criteria set out in guiding documents, transparency in implementation, and the capacity for supervision after projects are approved.