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Vietnam’s investment policy in 2026: Tightening controls or opening further?

Vietnam’s investment policy entered a significant new phase in 2026 with the official entry into force of the Law on Investment 2025 (Law No. 143/2025/QH15) on 1 March 2026. Replacing the previous legal framework, the new law is expected to unlock economic resources, enhance the investment environment, and strengthen Vietnam’s competitiveness in attracting both domestic and foreign investment.   Against the backdrop of increasing global economic uncertainty, foreign investors and local businesses alike are seeking a clear answer to an important question:  Is Vietnam’s investment policy moving toward tighter regulatory control to mitigate risks, or toward greater openness to capture growth opportunities?  The answer is not merely of academic interest. It has direct implications for market entry strategies, investment structuring, business expansion plans, and long-term compliance obligations.   This article examines the key changes introduced under the new investment framework and ana...
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Small and medium-sized FDI enterprises exempted from corporate income tax for the first 03 years of establishment

In an effort to improve the investment environment and support start-up enterprises, competent State agencies continuously promulgate and update tax incentive policies. Most recently, on June 11 th  , 2026, the Tax Department issued Official Letter No. 3896/CT-CS to provide detailed guidance on corporate income tax (“ CIT ”) policies under Decree No. 20/2026/ND-CP . This Official Letter has opened up an opportunity to access an extremely important incentive: A 03-year CIT exemption for small and medium-sized foreign direct investment (“ FDI ”) enterprises.   Foreign investors and economic organizations must clearly understand the legal bases, from foundational definitions to exceptional cases, to apply them correctly and maximize this opportunity.   1. Legal basis for determining small and medium-sized enterprises:   Regarding the definition, pursuant to Article 4.10 of the Law on Enterprises 2020 : “An enterprise means an organization with a proper name, assets, a transaction offic...
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Employment Services No Longer a Conditional Business Line from July 1, 2026

The promulgation of the Law on Investment 2025 marks a significant turning point in the legal framework for investment management, notably removing the employment service business from the list of conditional business lines. Although this provision helps enterprises optimize capital and reduce administrative procedures, investors must pay special attention to its effective date.    Therefore, clarifying the legal bases and applicable regulations during the transition period will serve as an essential foundation to help enterprises proactively plan an appropriate legal compliance roadmap.   1. Legal basis for abolishing conditions for employment service business:   Regarding the legal basis, previous laws established a strict control mechanism over labor supply activities through mandatory requirements for operating licenses and escrow deposits. However, driven by the orientation of administrative procedure reform, these barriers have been removed to create a transparent and open bu...
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Changes in conditions, dossiers and procedures for registration of foreign exchange transactions according to the Draft Circular replacing Circular 12/2016/TT-NHNN

Legal basis   Circular No. 12/2016/TT-NHNN dated 29/6/2016 of the State Bank of Vietnam guiding foreign exchange management for outward investment activities;   Decree No. 103/2026/ND-CP dated March 31, 2026 of the Government regulating outward investment;   The Draft Circular replaces Circular 12/2016/TT-NHNN guiding foreign exchange management for outward investment activities.   The Draft Circular to replace Circular 12/2016/TT-NHNN is developed to synchronize with Decree 103/2026/ND-CP, especially the new regulations on cases of outward investment that do not have to carry out procedures for issuance of an outward investment registration certificate. Because Circular 12/2016/TT-NHNN mainly designs foreign exchange management procedures on the basis that investors have an outward investment registration certificate, the issuance of a new Circular is necessary to supplement the mechanism for registering foreign exchange transactions, managing investment capital accounts a...
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Reporting obligations to be fulfilled when investing abroad according to the Law on Investment 2025 and Circular 12/2016/TT-NHNN

Legal basis   Law on Investment No. 143/2025/QH15 ;   Decree 19/2026/ND-CP regulating the order and procedures for appraisal of projects of national importance and investment supervision and assessment;   Decree 103/2026/ND-CP regulating outward investment;   Decree 122/2021/ND-CP stipulates the sanctioning of administrative violations in the field of planning and investment;   Circular 38/2026/TT-BTC stipulates forms of documents and reports on outward investment;   Circular 44/2026/TT-BTC regulating the form of investment supervision and assessment report; the regime of online reporting and management and operation of the information system on investment supervision and assessment; Circular 12/2016/TT-NHNN guiding foreign exchange management for outward investment activities;   Decree 88/2019/ND-CP stipulates the sanctioning of administrative violations in the field of currency and banking.   According to the Law on Investment 2025 and Decree 103/2026/...
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