National Assembly reforms laws to create favourable investment environment

National Assembly reforms laws to create favourable investment environment

The HCM City Investment and Trade Promotion Centre (ITPC), in coordination with the Việt Nam International Arbitration Centre (VIAC), held a seminar this morning (April 24) titled “The National Assembly's Law No. 57/2024/QH15 and New Investment Policies.”

Delegates attended a seminar titled “The National Assembly's Law No. 57/2024/QH15 and New Investment Policies” on April 24 in HCM City. - VNA Photo

The HCM City Investment and Trade Promotion Centre (ITPC), in coordination with the Việt Nam International Arbitration Centre (VIAC), held a seminar this morning (April 24) titled “The National Assembly's Law No. 57/2024/QH15 and New Investment Policies.”

The National Assembly of Việt Nam has recently passed amendments to four major laws governing investment and business activities. Collectively referred to as Law No. 57, these amendments include revisions to the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment (PPP), and the Law on Bidding.

Law No. 57 is designed to address existing legal bottlenecks, improve the business climate, unlock private sector resources, and create stronger momentum for economic development.

As Việt Nam navigates an era of rapid economic transformation marked by both opportunities and challenges, ensuring a modern and effective legal framework is critical.

It not only fosters sustainable development but also enhances investor confidence —particularly among foreign investors who are playing an increasingly important role in Việt Nam's economic growth.

Key Highlights of Law No. 57

Simplification of Administrative Procedures: The law streamlines investment processes, cutting red tape, and making it easier for investors to initiate and operate projects.

Decentralisation and Delegation of Authority: Local governments now have more power to manage and approve projects, significantly reducing bureaucratic delays.

Special Investment Procedures Introduced: Law No. 57 introduces a new investment mechanism tailored to high-priority zones such as industrial parks, export processing zones, high-tech parks, IT zones, free trade zones, and functional areas within economic zones. This measure provides a flexible and expedited route for large-scale projects.

Revised List of Conditional Business Sectors: Some sectors now require new compliance measures. This may affect businesses that were previously operating legally but now fall short of updated legal conditions, risking license revocation, capital adjustments, or limited expansion rights.

These regulatory changes necessitate immediate attention from the business community.

Companies—especially foreign-invested enterprises—must proactively update their legal understanding and review current operations to ensure compliance.

Failure to do so could lead to legal disputes with the government or between investors.

Việt Nam’s National Assembly plans to continue refining its legal system, prioritising economic growth while ensuring macroeconomic stability, inflation control, and domestic financial balance.

Upcoming reforms are expected in laws related to enterprises, digital industries, science and technology, innovation, and advertising.

These changes aim to further institutionalise investment incentives and flexible mechanisms for bidding and PPPs, especially in the innovation and digital transformation sectors.

Of notable interest is Việt Nam’s proposal to establish international financial centres in HCM City and Đà Nẵng City.

This marks a strategic leap in attracting global capital and positioning Việt Nam on the regional financial map.

These centres will operate under 15 special policy groups, offering tax incentives, flexible foreign exchange and banking policies, open capital markets, and advanced dispute resolution mechanisms.

Foreign firms will be allowed to set up holding companies with cross-ownership without complex investment registration, and will be permitted to apply international accounting standards.

Law No. 57 reflects Việt Nam’s strong commitment to law modernisation, investment facilitation, and sustainable development.

It sends a powerful message to both domestic and international investors that Việt Nam is evolving into a more open, competitive, and investor-friendly economy. 

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