Large projects need more than an IRC — they pass through policy-approval levels, and each country tiers them differently. This article compares Vietnam, India and China. India and China details are reference only — check with local counsel.
1. Vietnam: tiered policy approval
- National Assembly: especially large projects — under Investment Law 143/2025;
- Government/PM: large projects — per statutory tiers;
- Provincial People’s Committee: ordinary projects — most FDI;
- Thresholds: look up the specific thresholds in the current law — they change;
- Warning: don’t infer thresholds from the old law — Law 143/2025 is new.
2. China: approving large foreign-invested projects
- Overview: large projects pass the corresponding approval level — NDRC and tiers;
- Tiers: central/local — depending on scale and sector;
- Sectors: sensitive sectors — higher levels;
- Details: ask Chinese counsel — current thresholds and procedures;
- Compare: similar tiering principle — different details.
3. India: approving large projects
- Overview: India has its own approval mechanisms — central and state;
- States: states play a big role — each with different policies;
- Sectors: foreign-capital caps by sector — check current rules;
- Details: ask Indian counsel — don’t infer from Vietnam/China;
- Compare: more complex as a federation — more layers.
4. Approval timelines: qualitative comparison
- Vietnam: fast for ordinary projects — slower for higher-tier ones;
- China: depends on sector and locality — ask in practice;
- India: usually longer — more layers, more parties;
- Reality: don’t trust “how many days” figures online — ask about comparable projects;
- Buffer: double the expected time — in planning.
5. Negotiated incentives: feasible where?
- Vietnam: large, high-tech projects — special incentives negotiable;
- China: localities competing — land and tax incentives;
- India: states offering incentives — inter-state competition;
- Reality: negotiated incentives — not automatic, must be proposed;
- In writing: incentive commitments in writing — not verbal promises.
6. Political risks affecting approvals
- Vietnam: stable — consistent FDI policy;
- China: bilateral relations matter — investor sentiment;
- India: state-government changes — policies may shift;
- General: monitor politics — like monitoring markets;
- Hedge: protective clauses in incentive agreements.
7. Policy-approval dossiers in Vietnam
- Dossier: the project proposal — objectives, scale, capital, location;
- Assessment: environmental and social impact — by scale;
- Appraisal: specialist agencies appraise — per tier;
- Sequence: follow the sequence — no shortcuts;
- Advice: local counsel — a correct dossier from the start.
8. After policy approval: what remains?
- IRC: obtain the investment registration certificate;
- Land: land allocation/lease — separate procedures;
- Construction: construction permits — design, fire safety;
- Environment: environmental impact assessment — approval;
- Total: policy approval is only the first step.
9. Hidden costs of large projects
- Advisers: legal and consulting costs — across countries;
- Time: opportunity cost — capital waiting;
- Revisions: design changes per requirements — expensive;
- Relationships: legitimate relationship-building costs — transparent;
- Reserve: 10–20% budget reserve — for approvals.
10. Overall three-country comparison
- Speed: Vietnam usually fastest for ordinary projects;
- Incentives: all three offer them — differing levels and negotiation;
- Risk: each country its own type — assess separately;
- Cost: total approval costs — comprehensively compared;
- Conclusion: no country wins on every front.
11. Country-selection strategy for large projects
- Market: near customers — the deciding factor;
- Supply chain: near suppliers — logistics costs;
- People: technical workforce — quality and cost;
- Policy: stability and incentives — long term;
- Combined: a decision matrix — scoring each factor.
12. Three-country large-project checklist
- Approval level — identified per country?
- Current tier thresholds — looked up?
- Negotiated incentives — proposed?
- Political risks — assessed?
- Counsel in three countries — consulted?
- Budget reserve — in place?
13. The role of advisers in large projects
- Lawyers: local counsel — dossiers, procedures, negotiation;
- Investment advisers: feasibility assessment — finance, market;
- Auditors: the Big4 — financial reports, diligence;
- Environmental: impact-assessment consultants — specialist;
- Coordination: one lead — coordinating the advisers.
14. Negotiating with local governments
- Prepare: a capability dossier — comparable past projects;
- Propose: specific proposals — jobs, taxes, technology;
- Commit: realistic commitments — don’t overpromise;
- In writing: a framework agreement — recording incentives;
- Maintain: keep the relationship — after approval.
15. After approval: disbursing capital
- Schedule: a disbursement schedule — matching project progress;
- FX: comply with transfer rules — per country;
- Monitor: monitor fund usage — for the right purposes;
- Report: report disbursement progress — periodically;
- Adjust: adjust when needed — supplementary procedures.
16. Land for large projects
- Scale: large land needs — early engagement;
- Clearance: site clearance — timelines and costs;
- Price: negotiate land prices — with incentives;
- Title: verify land titles — thoroughly;
- Alternative: industrial parks — faster for most.
17. Force majeure in approval timelines
- Reality: delays happen — plan for them;
- Contracts: protect with timeline clauses — with contractors;
- Finance: extend financing — if delayed;
- Communication: inform stakeholders — early;
- Resilience: build schedule buffers.
18. Approval delay risks
- Cause: incomplete dossiers — repeated supplements;
- Cause: planning changes — projects must adjust;
- Cause: multiple agencies — no consensus;
- Response: a correct dossier from the start — good advisers;
- Response: close follow-up — regular pushing.
19. Stakeholder mapping for approvals
- Map: every approving body — and their concerns;
- Sequence: the order of approvals — plan it;
- Champions: find supporters — inside the system;
- Risks: identify blockers — early;
- Manage: manage the map — actively.
20. Environmental approval specifics
- Vietnam: EIA approval — by project scale;
- China: separate environmental review — ask local counsel;
- India: central/state clearance — by category;
- Timeline: months — parallel with other approvals;
- Start: start early — it’s on the critical path.
21. Fire-safety and construction permits
- Vietnam: fire-safety approval — for factories;
- Design: compliant designs — from the start;
- Inspections: staged inspections — during construction;
- Delays: a common delay source — plan for it;
- Handover: acceptance before operation.
22. Putting it together: the master timeline
- Draft: a master timeline — all approvals;
- Critical: the critical path — which approval gates others;
- Parallel: run tracks in parallel — where allowed;
- Buffer: buffers — at each gate;
- Track: weekly tracking — against the master.
23. Lessons from successful large projects
- Lesson 1: prepare thoroughly — won at the dossier;
- Lesson 2: good relationships — with authorities;
- Lesson 3: patience — approvals take time;
- Lesson 4: local teams — on the ground;
- Lesson 5: follow-through — after approval.
24. When to walk away
- Signal: endless delays — with no reason;
- Signal: moving goalposts — requirements keep changing;
- Signal: costs exceeding benefits — recalculated;
- Discipline: walk-away criteria — set upfront;
- Option: another country — or a smaller project.
25. The approval war room
- Team: a dedicated approval team — not a side job;
- Room: a physical or virtual war room — tracking everything;
- Daily: daily standups — during critical phases;
- Escalation: clear escalation paths — when stuck;
- Close: celebrate each approval — momentum matters.
26. Key takeaway
- Tiers: know your approval tier — in each country;
- Buffer: buffer time and money — generously;
- Write: get everything in writing.
27. After approval: delivering the project
- Execute: execute — approvals mean nothing without delivery;
- Monitor: monitor commitments — made during approval;
- Report: report progress — to all stakeholders.
Contact us
FLAT Law Firm advises Chinese investors throughout the Vietnam investment cycle — from deal structuring and licensing to operations and compliance. Contact us for advice tailored to your project.
This article has been quality-reviewed by the FLAW AI Legal Council