National Assembly Passes the Amended Investment Law: A Major Shift in Conditional Business Regulation

On 11 December 2025, during its 10th Session, the National Assembly of Vietnam officially passed the Amended Investment Law with 425 out of 436 votes in favor (89.85%). The Law consists of 7 Chapters, 52 Articles, and 4 Appendices, marking one of the most significant regulatory reforms to Vietnam’s investment and business environment in recent years.

🔍 KEY LEGAL HIGHLIGHTS
– Removal of licensing requirements for 38 conditional business lines
–  Adjustment of the regulatory scope of 20 additional sectors
– A clear policy shift from ex-ante licensing to ex-post supervision (post-inspection)
– Full alignment with National Assembly Resolution No. 68 and Resolution No. 198

Under the new framework, the Government will:
– Publish a narrowed list of business lines that genuinely require prior licensing or certification; and
– Identify sectors where licensing is replaced by public disclosure of conditions, subject to enhanced post-inspection.

⚖️ LEGAL SIGNIFICANCE & PRACTICAL IMPACT
📌 Strengthening the Freedom of Enterprise
This reform reinforces the constitutional principle that enterprises are free to do business in any sector not prohibited by law.
📌 Reduced Compliance Costs and Administrative Burden

The removal of unnecessary licenses allows businesses to:
– Enter the market more quickly
– Lower administrative and opportunity costs
– Minimize “licensing risks” and procedural uncertainty

📌 Alignment with International Regulatory Standards
The shift toward post-inspection reflects best practices commonly adopted in OECD and developed economies, while increasing accountability during the operational phase.

📌 Positive Signal to Domestic and Foreign Investors
The Amended Investment Law sends a strong message of commitment to:
– Regulatory transparency
– Legal predictability
– A more investment-friendly environment, particularly for FDI and emerging business models

🧭 PRACTICAL RECOMMENDATIONS
Businesses and investors should:
– Review their registered business lines to take advantage of the relaxed licensing regime;
– Reassess compliance strategies, especially in sectors moving to post-inspection;
– Closely monitor forthcoming implementing decrees and circulars.

📌 THE LAM LAW LLC – Your legal need, Our Mission will continue to track and analyze forthcoming implementing regulations and provide sector-specific insights for investors and enterprises.

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