When launching an investment project in Vietnam, many foreign investors ask the same two questions: does my project require investment policy approval, and if so, where do I file? This is one of the most critical “gateway” procedures — filing with the wrong authority or missing the step entirely can stall an entire project timeline.
This article systematizes the current rules on investment policy approval under the Law on Investment 2025 (No. 143/2025/QH15, effective March 1, 2026) and Decree No. 96/2026/ND-CP (effective March 31, 2026).
1. What is investment policy approval?
Under Clause 1, Article 3 of the Law on Investment 2025, investment policy approval means the competent state authority’s approval of:
- The project’s objectives, location, scale, schedule, and duration;
- The investor or the form of investor selection;
- Any special mechanisms or policies (if applicable) for project implementation.
In plain terms, it is the first “green light” confirming that the State agrees in principle to the project. Only after obtaining the investment policy approval decision may the investor proceed to subsequent steps such as issuance of the Investment Registration Certificate (IRC).
2. Which projects require investment policy approval?
Article 24 of the Law on Investment 2025 lists 20 categories of projects subject to investment policy approval. The categories most relevant to foreign investors include:
- Land-related projects: projects requesting land allocation or land lease without auction of land use rights or bidding for investor selection; projects requesting a change of land use purpose;
- Sensitive areas: projects in areas affecting national defense or security; projects requesting allocation of sea areas;
- Housing and urban areas: residential housing construction (for sale, lease, or lease-purchase) and urban area projects;
- Infrastructure: construction and business of industrial park, export processing zone, or concentrated digital technology zone infrastructure; special seaports and grade-I seaports; airports and airfields;
- Special projects: golf courses; passenger air transport; oil and gas processing;
- Special-mechanism projects: projects requiring special mechanisms or policies that differ from laws or National Assembly resolutions.
Conversely, typical FDI projects — such as leasing a factory inside an established industrial park directly from the infrastructure developer, or setting up service and trading companies — generally do not require investment policy approval and proceed directly to IRC issuance.
3. Which authority grants approval? (Article 25, Law on Investment 2025)
The Law on Investment 2025 divides approval authority into three levels:
3.1. The National Assembly
Under Clause 1, Article 25, the National Assembly approves investment policy for projects under Clause 20, Article 24 — i.e., projects requiring special mechanisms or policies that differ from laws or National Assembly resolutions. This is the highest level, reserved for projects with breakthrough institutional arrangements.
3.2. The Prime Minister
Under Clause 2, Article 25, the Prime Minister approves investment policy for projects under Clauses 1, 2, 4, 6, 7, and 19 of Article 24, plus special cases such as:
- Projects requiring resettlement of 20,000 or more people in mountainous areas, or 50,000 or more people in other regions;
- Projects within protection zone I of a specially-ranked national relic listed as a world heritage site.
3.3. Chairpersons of provincial People’s Committees
Under Clause 3, Article 25, except for projects under the National Assembly’s or the Prime Minister’s authority, chairpersons of provincial People’s Committees approve investment policy for the remaining projects — including land-use projects, housing and urban areas, golf courses, and industrial park infrastructure. This is the level foreign investors encounter most often in practice.
Note: Investment policy approval does not apply to certain cases, such as individual investors’ projects that do not require a provincial People’s Committee document before land lease or land-use-purpose conversion, technical infrastructure projects of industrial clusters, or other projects as stipulated by the Government.
3.4. Special case: industrial zone management boards
For projects inside industrial parks, export processing zones, high-tech zones, or economic zones (Clause 4, Article 25), the management boards of such zones carry out the investment policy approval procedure under Clause 10, Article 35 of Decree No. 96/2026/ND-CP.
4. Approval procedure at a glance
Under Decree No. 96/2026/ND-CP, the basic process is:
- Step 1: The investor (or competent state agency) submits one dossier requesting investment policy approval, with an electronic copy, to the investment registration authority under Article 32 of Decree No. 96/2026;
- Step 2: Within 2 working days, the investment registration authority circulates the dossier for appraisal opinions from relevant agencies (7 working days for comments);
- Step 3: Within 14 working days, the investment registration authority prepares the appraisal report and submits it to the competent authority for decision.
Dossier components are detailed in our article “What does an investment policy approval dossier include under Decree 96/2026?”
5. Important note: the special investment procedure
A notable innovation of the Law on Investment 2025 is the special investment procedure (Article 28) — often called the “green lane.” Investors may opt to register investment under this procedure for projects in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, free trade zones, international financial centers, and functional areas within economic zones.
Projects under the special investment procedure are exempt from investment policy approval, technology appraisal, environmental impact assessment, detailed planning, construction permits, and related construction and fire-safety approvals — replaced by written commitments to meet standards and post-inspection. This option can significantly shorten the deployment timeline.
Frequently asked questions
Does an FDI project leasing land inside an industrial park need investment policy approval?
Usually not, provided the investor leases land or infrastructure directly from the park developer and the project does not fall under the special cases in Article 24. Where approval is required (e.g., special incentives are requested), the zone’s management board handles the procedure.
How does investment policy approval differ from the Investment Registration Certificate?
Investment policy approval is the “in-principle” step (objectives, location, scale), while the IRC records the investor’s specific registered project details. For projects subject to approval, the policy approval must come first, then the IRC.
Can the old rules (Law on Investment 2020) still be used?
No. The Law on Investment 2020 (No. 61/2020/QH14) has expired and was replaced by the Law on Investment 2025 effective March 1, 2026. The authority provisions in Articles 30–32 of the old Law no longer apply.
Preparing an investment project in Vietnam and need to pin down the exact applicable procedure? Contact us for advice tailored to your case.
Reviewed by the FLAW AI Legal Council and submitted to the owner for approval. This article is for reference only and does not constitute legal advice for your specific case.