The Draft Law on Business Investment (to replace the 2020 Investment Law) is under review by the National Assembly. If passed, it will take effect on July 1, 2026. This landmark legislation reshapes Vietnam’s legal framework for investment in the new era.

🔎 Key Highlights & Differences:
1️⃣ Application of Laws (Article 4)

🔷The Business Investment Law prevails in case of conflicts with other laws on prohibited or conditional business sectors.

🔷Provides a clear conflict-of-law mechanism with limited exceptions (PPP, Public Investment, Construction, Securities, Credit Institutions, Insurance, Petroleum…).

🔷Allows application of foreign law or international investment practices in contracts with foreign investors, as long as not contrary to Vietnamese law.

2️⃣ Investment Policy (Article 5)
🔷Investors have the right to freely conduct business in sectors not prohibited.

🔷The State guarantees protection of lawful assets, capital, and profits.

🔷Emphasizes equal treatment between investors, sustainable development, and compliance with international treaties.

3️⃣ Investment Sectors
🔷Updated lists of prohibited and conditional business lines.

🔷Conditions can only be imposed by laws, NA resolutions, or Government decrees – ensuring transparency and limiting arbitrary requirements.

4️⃣ Dispute Resolution (Articles 14 & 30)
▶️Disputes may be settled by negotiation, mediation, arbitration (Vietnamese, foreign, international, or ad hoc), or courts.

▶️Article 30 ensures priority application of the Business Investment Law in case of conflict until July 1, 2026.

▶️Strengthens investor protection through flexible arbitration mechanisms aligned with international standards.

📌 Why It Matters for Businesses & Investors
✅ Greater legal clarity in cases of conflict with sectoral laws.

✅ Improved investment environment with transparent and investor-friendly policies.

✅ Stronger dispute resolution framework to safeguard investor rights, particularly for cross-border investments.

📄 Download the Draft Law on Business Investment attached for full details.

👉 At THE LAM LAW LLC – Your legal need, Our Mission, we stand ready to support businesses and investors in assessing impacts and preparing for these legal changes.

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