Foreign investment into Vietnam entered 2026 under a genuinely new legal architecture: the 2025 Investment Law, Decree 96/2026/ND-CP guiding it, Decree 168/2025/ND-CP on business registration with an amendment already drafted, and a two-tier local government model that changed which authority an investor deals with. This update pulls the pieces into one working picture for investors planning entry this year.
The biggest foreign investment sequencing change
Article 19.2 of the 2025 Investment Law permits a foreign investor to establish an economic organisation to carry out an investment project before applying for or adjusting the Investment Registration Certificate. Decree 96/2026/ND-CP then requires the enterprise registration application to include a commitment that the investor satisfies market access conditions. In the older sequence, the certificate came first and the company second; now the two can be reordered, and the draft amendment to Decree 168/2025 removes the requirement to file a certificate copy with the company application at all.
The practical effect for foreign investment projects in unconditional sectors is a shorter critical path. The trap is the commitment itself: signing that the project meets market access conditions when a sector cap or sub-licence says otherwise converts a filing formality into a misdeclaration.
What has not changed in foreign investment rules
Market access remains the gate for foreign investment. Sector caps under the WTO schedule and domestic law still bind, and our guide to foreign ownership limits maps where the ceilings sit. Conditional business lines still require sub-licences that no reform has abolished. Charter capital must still be contributed within 90 days through the direct investment capital account. And investment incentives still depend on sector, location and disbursement conditions being demonstrably met each year, not merely claimed once.
Foreign investment reform investors will actually feel
Three foreign investment shifts. Filings move to electronic identification accounts through the National Public Service Portal and the VNeID app. Registrars increasingly pull from national databases instead of demanding certified copies – the draft decree would extend this to tax registration certificates, investment certificates and the approval of share purchases by foreign investors. And provincial practice, always the real variable, is being reorganised alongside the two-tier government model, which means reference-checking a province’s current turnaround times matters more this year than last.
Foreign investment FAQs
Is Vietnam still opening or quietly tightening?
Both, in different places. Entry procedures are being simplified and digitised; disclosure, beneficial ownership transparency and tax scrutiny are tightening in parallel – Vietnam is responding to Global Forum transparency standards. The country is easier to enter and harder to be careless in.
What is the realistic timeline for a new project now?
Eight to twelve weeks for an unconditional sector with clean legalised parent documents; conditional sectors add the sub-licence calendar. Our market entry guide breaks the phases down, and official statistics on foreign investment flows are published via the Ministry of Finance.
Does the outbound circular affect inbound investors?
Only if the Vietnamese entity later invests abroad, in which case Circular 34/2026 applies – see our note on outbound investment foreign exchange rules.
Where foreign investment capital is actually going
Manufacturing continues to absorb the largest share of foreign investment, driven by supply chain relocation into the northern and southern industrial corridors. Energy and infrastructure follow, opened further by the revived public-private partnership framework. Technology and data infrastructure form the fastest-growing lane, though data localisation and licensing questions make legal structuring decisive there. Retail, logistics and education attract steady interest but carry the conditional-sector burden that catches unprepared entrants.
Foreign investment deal structure has shifted too. Greenfield remains dominant by value, but acquiring an existing licensed company is increasingly the route of choice where speed matters – inheriting licences, land rights and a workforce rather than building each from zero. That preference makes diligence quality, rather than licensing skill, the differentiator on many mandates.
Common foreign investment mistakes in the first year
Three recur regardless of sector or size. Charter capital declared too low for the business plan, which invites questions at licensing and constrains operations afterwards. Business lines drafted too narrowly, forcing an amendment the first time the model evolves. And post-licensing compliance treated as separate errands rather than one calendar – capital contribution inside 90 days, initial tax declarations, labour registrations, work permits for foreign managers. A foreign investment project that starts with penalties on file spends its first year explaining them.
The fourth mistake is subtler: assuming that provincial practice matches the statute. Two provinces applying the same law can differ by weeks in turnaround and by degrees in documentary appetite, which is why local counsel with current filings in that province is worth more than a national brand with none.
This article is provided for general information only and does not constitute legal advice for any specific case. Regulations may change – please consult a qualified professional before acting. Should further analysis be required, please contact one of our lawyers below.
