VIETNAM Law and Practice Contributed by: Minh Duong, Phong Nguyen and Justin Gisz, Asia Counsel Vietnam Law Company Limited
park management boards, ministries, the Prime Min - ister or even the National Assembly. Specific authorities may be required in certain cases. For example, public-private partnership (PPP) projects might involve establishing case-by-case appraisal councils to evaluate the FDI. The State Bank of Viet - nam plays a crucial role in approving specific invest - ment activities within the banking sector, such as establishing foreign-invested banks or foreign bank branches. In addition, the Ministry of Finance (MOF) is the regulator in charge of licensing foreign invest - ment into companies operating in insurance, fund or securities activities. Generally, approval authorities have the power to: review and decide on FDI acceptance;
national integration, and recognise the private sector as the most important driving force of the economy. According to the General Statistics Office, Ministry of Finance, as of 30 September 2025, total registered capital from new projects, project adjustments, share purchases, and capital contributions by foreign inves - tors was approximately USD28.54 billion, marking a 15.2% increase compared to the same period in 2024. The most attractive sectors to foreign investors include manufacturing, real estate, and technology. Manufacturing The manufacturing sector continues to be a key focus of foreign investment in Vietnam. According to the Ministry of Finance, the processing and manufactur - ing industry attracted the largest amount of new FDI, reaching USD7.27 billion, or 58.7% of total newly registered capital. Notably, Vietnam’s new Law on the Digital Technology Industry, effective 1 January 2026, offers significant incentive policies to establish a Vietnamese semiconductor ecosystem. Accord - ingly, the manufacturing of semiconductor products and AI-related businesses is classified as a specifi - cally prioritised investment sector these they fall under the incentive list. Businesses participating in the semi - conductor supply chain will also benefit from targeted incentive schemes and financial support from local state budgets. In March 2025, Lite-On Technology started construc - tion of its USD690 million factory in Quang Ninh, pro - ducing computer components and optical devices. In April 2025, LEGO officially launched its USD1.3 billion factory in VSIP III Industrial Park, Binh Duong. Red Board Electronics Limited, through its subsidiary Red Board Vietnam, was also approved to invest USD110 million in a high-precision circuit board factory in Kim Bang I Industrial Park, which is expected to be com - pleted by February 2027. Investment in electric vehicle manufacturing is also growing, as Vietnam works toward its Net Zero 2050 goal and introduces supportive policies. In August 2025, LG Energy Solution announced its plan to build an EV battery and charging–swapping station plant in Phu Tho, while local e-motorbike startup Dat Bike raised USD22 million in new funding.
• monitor activities; • approve changes; • impose sanctions; and • even terminate FDI projects.
Beyond initial approval, FDI enterprises may need additional sub-licences, permits or approvals, depending on their sector’s specific conditions. These requirements may not apply to domestic companies. For instance, an FDI company operating retail activi - ties needs a trading licence and a licence for each new retail outlet, except in certain exempt cases. 2. Recent Developments and Market Trends 2.1 Current Economic, Political and Business Climate Vietnam is accelerating its ambitious reform, aiming for upper-middle income status by 2030 and high- income status by 2045. A series of strategic transfor - mation agendas, commonly known as the “four pillars” of reform, have been promoted by the Political Bureau through four resolutions passed between late 2024 and the first half of 2025. These reforms aim to pro - mote science, technology and digital transformation, streamline the existing legal landscape, foster inter -
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