Vietnam is considering changes that could make it easier for foreign investors to enter its market. The proposed reforms would give the Government more power to adjust market access rules based on economic needs and state management priorities. The changes are part of planned updates to the Law on Investment and the Law on Bidding.
Finance Minister Nguyễn Văn Tuấn presented the draft changes to the National Assembly on October 23. The proposals also aim to simplify bidding procedures and improve the use of public funds. Lawmakers are reviewing the plans, including how much power the Government should have to change investment rules.
The draft amendments to the Law on Investment contain three articles. They introduce four new forms of investment support. These include supply chain development, high-tech manufacturing, investment in fixed assets and cooperation between businesses and education and research institutions.
The proposed support measures aim to help firms build stronger supply chains and expand production. They also seek to encourage investment in advanced technology and closer links between businesses, universities, vocational schools and science and technology organisations.
Such links can help firms access skilled workers, research and new ideas. They may also support the growth of industries that need advanced skills and modern production methods. The proposed changes set out a framework for the Government to provide support in these areas.
The draft also proposes exemptions from or reductions in fees for using marine areas. This measure would serve as an investment incentive and align the investment law with rules on marine resources, the environment and islands.
Another key proposal would allow the Government to decide on special investment incentives and support measures within its authority. These measures could help attract projects that meet national development goals. However, lawmakers want clear rules on which projects should qualify and how results should be measured.
The draft also gives the Government a possible route to ease market access conditions for foreign investors. These conditions are set out in laws, National Assembly resolutions, ordinances, resolutions of the National Assembly Standing Committee and international treaties to which Vietnam is a party.
Under the proposal, the Government could review these conditions based on the country’s social and economic situation and its state management needs. The aim is to give policymakers more flexibility when responding to changes in the investment climate.
However, the proposal includes a safeguard for sectors where foreign investors face conditional market access rules. If these restrictions are set out in laws or other specified legal instruments, the Government would need to seek the opinion of the National Assembly Standing Committee before making a decision.
The measure has raised questions about the balance between flexibility and oversight. Giving the Government greater authority could help it respond to new investment needs. At the same time, changes to market access rules can affect domestic firms, foreign businesses and the wider economy.
Phan Văn Mãi, chairman of the National Assembly’s Economic and Financial Committee, said the committee broadly supported efforts to expand market access for foreign investors. However, he said the proposed authority for the Government to review and decide on these conditions needed careful consideration.
The committee also called for clear principles and criteria for special investment incentives. It said eligibility should be linked to project results and the commitments made by investors. This would help ensure that public support leads to clear economic benefits.
The committee said supported projects should create wider benefits for the economy, encourage development and improve competitiveness. These benefits could include stronger supply chains, new skills, improved technology and closer links between businesses and research institutions.
It also stressed the need to limit the transfer of major policy decisions to lower-level legal documents. Clear rules could help make investment decisions more transparent and ensure that support is based on consistent standards.
The proposed changes to the Law on Bidding form another part of the reform plan. They aim to simplify procedures and improve procurement efficiency. Clearer and faster processes could help public bodies manage projects and use public resources more effectively.
The proposals are still under legislative consideration. Their final impact will depend on the wording of the approved laws and how the rules are applied. For foreign investors, the planned reforms could offer greater flexibility, but the details of market access conditions and investment support will remain important.
