Does the 2025 Investment Law add any new environmental obligations specifically for FDI projects? The answer is that there is no separate, heavier environmental regime for FDI. What is new in Law 143/2025/QH15 is the embedding of environmental protection requirements into the control points of the investment process — from approval and implementation to extension and suspension sanctions.
The most notable innovation: the Article 28 mechanism — special investment procedures
Article 28 of Law 143/2025 (effective 01/3/2026) establishes special investment procedures for projects located in industrial parks, export processing zones, hi-tech parks, concentrated digital technology zones, free trade zones, international financial centers, and functional areas within economic zones.
For these projects, investors are exempt from preparing an environmental impact assessment (EIA) report, and also exempt from technology appraisal, detailed planning approval, and construction permits. But this is NOT a blanket exemption from environmental obligations. In place of the EIA report, the law requires:
- a written commitment to satisfy environmental protection conditions, standards, and technical regulations;
- the project proposal must contain an identification and forecast of environmental impacts plus mitigation measures, replacing the preliminary environmental impact assessment.
Post-inspection remains in full force: under Article 28, before construction begins, the investor must have a report on the results of environmental protection verification (detailed procedures follow Article 28 and its guiding documents).
An important boundary: only projects falling within the scope of Article 28 are exempt from preparing an EIA report. Projects outside that scope still follow the EIA and environmental licensing regime under Law 72/2020/QH14 on Environmental Protection — which remains in force at the time of writing (14/10/2026).
Environmental compliance throughout implementation — Article 29.3
Clause 3, Article 29 of Law 143/2025 provides that investors are responsible for complying with environmental law throughout project implementation. This is a continuous duty, not limited to the dossier preparation or approval stage.
The environmental exception to the investment guarantee principle — Article 12.3
A principled innovation: when the law changes for environmental protection reasons (alongside national defense and security, social order and safety, social ethics, and public health), investors may not continue to apply their previous investment incentives — the new environmental rules apply immediately. This is an exception to the investment guarantee principle, and it must be read in the right direction: a law change for environmental reasons means old incentives cannot be retained.
Screening at the extension gate — Article 31.5(a)
Point a, clause 5, Article 31 provides that the operating term of an investment project shall not be extended for projects using outdated technology, posing a risk of environmental pollution, or being resource-intensive. Note: this is not an entirely “new” point of the 2025 Law but inherits the spirit of previous law — the real environmental innovation of the 2025 Law is the Article 28 mechanism described above.
Environmental sanctions across the project lifecycle — Article 35
- Suspension or partial suspension of operations to remedy environmental violations, at the request of the state environmental management authority (Article 35.2(b));
- the Prime Minister may decide to suspend a project that causes or risks causing harm to the environment (Article 35.3).
Supervision and reporting: Articles 45, 47 and Decree 96/2026
Environmental protection is a mandatory element of the investor’s periodic reports (Article 47.2(a)) and one of the inspection, supervision, and evaluation items for investment projects (Article 45.3(b)). At the decree level:
- Article 91.2(b) of Decree 96/2026/ND-CP assigns the Ministry of Agriculture and Environment to lead the guidance and inspection of regulations on natural resources and environmental protection related to investment activities;
- Article 94.3 requires the annual report of business organizations to include the indicator “waste treatment and environmental protection”;
- Article 32.1(d) requires the dossier requesting investment policy approval to include a “preliminary environmental impact assessment (if any) in accordance with the law on environmental protection”.
The legal boundary: substantive obligations sit in the Environmental Protection Law
The distinction must be clear: the 2025 Investment Law only provides the embedding mechanism — commitments, appraisal, extension screening, and suspension sanctions. The substantive environmental obligations (environmental impact assessment, environmental licenses, environmental registration, project grouping I–IV) sit in Law 72/2020/QH14 on Environmental Protection — still in force as of 14/10/2026 (amended and supplemented only, not replaced) — and Decree 08/2022/ND-CP (amended and supplemented by Decree 40/2023/ND-CP and Decree 05/2025/ND-CP, effective 06/01/2025).
Investors should look up the specific obligations applicable to their project in Articles 28–39 of the Environmental Protection Law and the Appendix to Decree 08/2022 (as amended by Decree 05/2025), rather than relying on memory. Also note: a draft amendment to the Law on Environmental Protection is currently under development (around October 2026). This is still a draft, not current law — its contents serve only as reference for future compliance planning.
Frequently asked questions
Does an FDI project in an industrial park need an EIA?
If it falls under the special procedures of Article 28: it is exempt from preparing an EIA report, but must provide a written environmental protection commitment, an identification/forecast of environmental impacts and mitigation measures in the project proposal, and remains subject to full post-inspection. Projects outside Article 28 still follow the EIA regime under Law 72/2020.
Can a change in environmental rules affect incentives already granted?
Possibly. Under Article 12.3, when the law changes for environmental protection reasons, investors may not continue to apply old incentives — the new rules apply immediately.
Legal references
- Investment Law 143/2025/QH15 (passed 11/12/2025, effective 01/3/2026): Articles 28; 29(3); 12(3); 31(5)(a); 35(2)(b), 35(3); 47(2)(a); 45(3)(b).
- Decree 96/2026/ND-CP (issued and effective 31/3/2026): Articles 91(2)(b); 94(3); 32(1)(d).
- Law 72/2020/QH14 on Environmental Protection (effective 01/01/2022, in force as of 14/10/2026).
- Decree 08/2022/ND-CP (effective 10/01/2022), amended and supplemented by Decree 40/2023/ND-CP and Decree 05/2025/ND-CP (effective 06/01/2025).
- Law 24/2026/QH16 (passed 24/8/2026, effective 01/3/2027): does not amend the environmental provisions listed above.
Need an environmental compliance review for your FDI project from approval to operation? The FLAT Law Firm team accompanies investors through special investment procedures, environmental commitments, environmental licenses, and periodic reporting. Contact us at contact us.
This article is general reference based on the law in force at the time of writing (14/10/2026) and does not constitute legal advice for any specific case.
Transparency note: This article was drafted by the AI content production system of FLAT Law Firm and is undergoing internal review (AI Legal Council QA and owner approval before publication). It has not been reviewed by a licensed human lawyer.