Vietnam Investment Law 2025: A Smoother Entry, Clearer Compliance

For foreign investors who have been following Vietnam’s development and considering Vietnam as one of the choices for their investment decision, they usually ask one practical question before entering, especially from the year 2026, that if the Vietnam investment Law 2025 makes this easier, or more complicated for investing and doing business here. 

The Vietnamese lawyers’ answer is as ironic and interestingly the same: both.

Let us explain why.

The Vietnam investment Law 2025, effective in 2026, aims to make the entry path more workable, but it also makes the compliance more strict and less forgiving.

For our positive thinking mindset, that is good news if your scope of business is clear, and your setup is realistic.

It will be challenging if you start with vague activities, minimal capital, and a fix later mindset plan.

Quick Reference of Vietnam Investment Law 2025

• The Vietnam investment Law 2025 takes effect March 1, 2026 and the conditional business list will be narrowed from July 1, 2026.
• Legal entry can be easier, but you need to early check if the investment areas belong to the list of prohibited, conditional, or non-conditional area lists.
• In practice, starting with low capital often collide with Vietnam’s expectations of a quality FDI project, especially if investor residence planning matters.
• The investment amount of USD 120k (VND 3 billion) remains a key practical threshold with DT3 visa and is eligible for Temporary Residence Card (TRC) validity up to 3 years.

When Does Vietnam Investment Law 2025 Apply?

•       From March 1, 2026, the Vietnam investment Law 2025 generally takes effect and becomes the main baseline for investment related procedures and compliance expectations.
•       From July 1, 2026, the regulation on list of conditional business lines take effect.

This matters because many foreign investors enter Vietnam in phases. They may start with steps to set up a legal entity, rent an office, hire a small team, and begin testing the market, then expand once the business model proves itself.

With the above timeline of regulation coming into effect, it means you can set up early in the year and use that period to validate your scope to answer questions if you are truly operating in an unconditional business area and are you clear on market access rules for foreign investors.   

How Entering Vietnam is Easier?

A more workable entry sequence for foreign investors

The Vietnam investment Law 2025 supports a more flexible sequence where a foreign investor may establish an entity and apply for ERC in connection with implementing a project before completing certain IRC issuance or adjustment procedures while still meeting market access conditions at establishment.

This helps because it can reduce early dead time when the business needs to lease, hire, and set up operations.

Special investment procedures in designated zones

The Vietnam investment Law 2025 provides for special investment procedures for projects located in certain zones for instance industrial parks, high-tech parks, digital tech zones, Free Trade Zones, international financial centers, etc.

This depends on location and project characteristics, not for every project.

Why Compliance in Vietnam Investment Law 2025 Matters More?

At the start of the setting up of company in Vietnam, the investors need to be specific about its business activities. Even if the list of conditional business lines becomes more streamlined, investors still need to verify their real activities are being properly categorized into:

1. Not prohibited or banned business lines
2. Not conditional or if conditional, you need to comply with the conditions and apply for licenses.
3. Not restricted under foreign investor market access conditions for instance ownership limits, scope limits, licensing requirements.

With the Vietnam investment Law 2025, a trend across is going focusing on:

• fewer permission steps upfront in some areas,
• stronger expectation that you can show records and consistency later.

That means, contracts, invoices, staffing, and actual operations must align with what you registered and what you claimed.

That pushes companies to set up internal compliance basics earlier.

Minimal Capital Mindset Not Suitable in Vietnam

We come across investors with a very positive mindset and wish to incorporate companies with minimal capital, because in developed markets they can start lean, prove the model, then raise funds and increase capital later.

Not in Vietnam.

That approach often creates friction. Vietnam has relied heavily on FDI, and regulators and counterparties frequently expect capital that matches the project plan. When the capital looks too small for the stated scope, the project may face extra questions, slower processing, and practical limits, especially if the investor expects a longer stay plan.

Is VND 3 billion still a meaningful threshold for investor to apply for TRC for two to three years?

Yes.  VND 3 billion remains the key threshold in the investor classification framework.

• DT3 commonly applies where investment capital is VND 3 billion to under VND 50 billion.
• DT3 is commonly associated with temporary residence card (TRC) validity up to 3 years.
• DT4 (under VND 3 billion) is typically shorter term and often does not support the same TRC profile.

In our practical opinion, if the investor wants the government and the market to consider the project as quality, and if investor residence planning is part of the roadmap, VND 3 billion is often the planning baseline, unless there are clear sector reasons to justify a lower figure.

With the transformation and transition of policy of Vietnam to encourage AI, chip making, automation, digital assets, international financial center, free trade zones, the expectation of capital is much more.

Step-by-Step Entry Plan and Comply in Vietnam

Step 1: Define the Vietnam scope

You should be able to explain the business activities in simple terms.  This single sentence define market access conditions, licensing, contracts, staffing, and capital logic.

Step 2: Check the business lines against conditions

This will help ensure if the business activities belong to:

• prohibited lines
• conditional lines
• market access conditions for foreign investors

Step 3: Choose the right company structure

Most foreign investors use one of these:

• Single-member LLC
• Two-or-more-member LLC
• Joint Stock Company (JSC), which is useful for multi-shareholder governance and future fundraising.

Step 4: Check the registration procedures

Check the procedures to start entity establishment and apply for ERC and whether IRC related steps is needed.

Step 5: Set capital that matches the plan

Most of the time, there is no requirement on minimum capital for every business line.  But the immigration and credibility ecosystem make certain thresholds practically important. DT3 starts at VND 3 billion and is commonly linked to TRC validity up to 3 years. 

Step 6: Remember to comply strictly to avoid fine

Remember to ensure compliance post setting up, and during the operation in Vietnam on regular basis.  The compliance will be needed on various aspects including but not limited to taxes, regular reporting, labour.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest protection, risk mitigation and regulatory compliance. ANT Lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.