This article is for reference only and does not constitute legal advice. Content reviewed by the FLAW AI Legal Council.
Short answer: Yes, they are preserved for the remaining incentive term. Where the new law provides lower incentives than those the investor is enjoying, the investor continues to enjoy the previous incentives for the remaining term.
1. The legal basis: Article 12.2 of Law 143/2025
Article 12.2 of the Investment Law 2025 (Law No. 143/2025/QH15) — inheriting Article 13.2 of the 2020 Law unchanged — guarantees existing incentives where new legislation is less favorable.
2. Where the new law is more favorable
Investors enjoy the new, higher incentives for the remaining term — except special incentives under Article 17.5(a): special incentives do not apply to projects licensed before the Law took effect, so existing projects cannot be upgraded to special incentives (Article 12.1).
3. The only exception: defense, security, environment
Incentive changes for reasons of national defense, security, social order and safety, social ethics, public health, or environmental protection trigger compensatory measures within 3 years (Article 12.3–12.5).
4. Comparison table
| Scenario | Outcome |
|---|---|
| New law less favorable | Keep old incentives for remaining term (Art. 12.2) |
| New law more favorable | Enjoy new level (except special incentives, Art. 17.5(a)) |
| Change for defense/security/environment/health | Compensation within 3 years (Art. 12.3–12.5) |
| Upgrade to special incentives | Not available for pre-existing projects |
5. Two protected incentive groups
Article 4 of Decree 96/2026/ND-CP protects: (a) incentives recorded in legal documents (IRC, approval documents); and (b) incentives being enjoyed under law but not yet recorded. Procedure: written request to the investment registration authority, decided within 30 days.
Contact FLAT Law Firm for advice on preserving investment incentives under the new Law.
