1. What is foreign investment in Vietnam? 

Foreign investment in Vietnam can be understood as international investment activities. In this context, investors are individuals, companies, or organizations from abroad, investing in projects and businesses in Vietnam with the aim of seeking profits.

2. What is the current situation of foreign investment in Vietnam?

From 2020 to January 2025, Vietnam has recorded significant fluctuations in attracting foreign direct investment (FDI). As of January 2025, the total registered FDI reached 4.33 billion USD, an increase of 48.6% compared to the same period last year. The realized capital is estimated at 1.51 billion USD, an increase of 2% compared to the same period last year.

In 2024, Singapore continued to lead with a total investment of nearly 10.21 billion USD, accounting for over 26.7% of total investment, an increase of 31.4% compared to the previous year. South Korea ranked second with nearly 7.06 billion USD, accounting for 18.5%, an increase of 37.5% compared to the previous year. By January 2025, South Korea led with a total investment of over 1.25 billion USD, accounting for more than 28.9% of total investment, which is 13.4 times higher than the same period the previous year. Singapore ranked second with over 1.24 billion USD, accounting for 28.7%, an increase of 1.1% compared to the same period. The manufacturing and processing industry reached 1.26 billion USD, accounting for 83.2% of total implemented FDI; electricity, gas, hot water, steam, and air conditioning production and distribution reached 72.6 million USD, accounting for 4.8%; and real estate business activities reached 72.5 million USD, accounting for 4.7%.

3. How many forms of foreign investment are there in Vietnam? 

According to Article 21 of the Investment Law 2020, the forms of foreign investment in Vietnam include: 

• Investment to establish an economic organization; 
• Investment in capital contributions, purchasing shares, and purchasing capital contributions; 
• Implementing investment projects; 
• Investment in the form of BCC contracts (Business Cooperation Contracts); 
• Other forms of investment and new types of economic organizations as regulated by the Government of Vietnam.

4. Who is allowed to invest in Vietnam? 

According to Clause 19, Article 3 of the Investment Law 2020 regarding foreign investors, those permitted to invest in Vietnam include: 

• Individuals with foreign nationality; 
• Organizations established under foreign law that conduct investment and business activities in Vietnam.

5. What are the investment incentives for foreign investors in Vietnam? 

To attract more foreign investors to Vietnam, the government has implemented various incentives for foreign enterprises, specifically: 

• Corporate income tax incentives, including applying a lower corporate income tax rate than the normal rate for a limited time or for the entire duration of the investment project; tax exemptions, tax reductions, and other incentives as stipulated by corporate income tax laws; 
• Exemption from import duties on goods imported to create fixed assets; raw materials, supplies, and components imported for production, as regulated by export and import tax laws; 
• Exemption or reduction of land use fees, land rental fees, and land use taxes; 
• Accelerated depreciation, increasing the levels of deductible expenses when calculating taxable income.

6. How is the investment process in Vietnam carried out? 

Step 1: Determine the type of project that requires a decision on investment policy. 

In cases where projects are subject to the need for an investment policy decision, depending on the type and scale of the project, the investor must register with the corresponding authority. The authority to decide on investment projects at the respective agencies includes the National Assembly, the Prime Minister, and the provincial People's Committees. 

Investment projects that fall under the approval authority of the National Assembly include:  ​

• Investment projects that significantly impact the environment or have the potential to seriously affect the environment, including nuclear power plants; investment projects requiring a change in the use of special-use forests, protective forests at the source, and border protective forests of 50 hectares or more; windbreak forests, sand-dune forests, and wave-break forests; coastal reclamation of 500 hectares or more; and production forests of 1,000 hectares or more;
• Investment projects requiring a change in the use of rice cultivation land from two crops or more, with a scale of 500 hectares or more; 
• Investment projects requiring the resettlement of 20,000 people or more in mountainous areas and 50,000 people or more in other regions; 
• Investment projects requiring the application of special mechanisms and policies that need to be decided by the National Assembly.

Investment projects requiring the Prime Minister's approval for investment policies:

• Investment projects, regardless of funding sources, include those requiring the resettlement of 10,000 people or more in mountainous areas and 20,000 people or more in other regions; new investment projects such as airports, airfields, seaports, and port areas belonging to special seaports; new investment projects in passenger transportation by air; investment projects in oil and gas processing; and investment projects involving gambling, casinos, etc; 
• Investment projects by foreign investors in the telecommunications service sector with network infrastructure, forestry, publishing, and journalism; 
• Investment projects simultaneously under the approval authority of two or more provincial People's Committees; 
• Other investment projects under the approval authority of the Prime Minister according to legal regulations.

Investment projects under the authority of the provincial People's Committee require approval for investment policies:​

• Investment projects that request the State to allocate land, lease land without auction, bidding, or transfer, and investment projects that request permission to change the land use purpose; 
• Investment projects for building housing (for sale, lease, or lease purchase) and urban areas in cases where: investment projects have a land use scale of under 50 hectares and a population scale of under 15,000 people in urban areas; investment projects have a land use scale of under 100 hectares and a population scale of under 10,000 people in non-urban areas; investment projects regardless of land area scale or population in areas with development restrictions or historical inner cities (as defined in urban planning projects) of special urban types; 
• Investment projects for the construction and business of golf courses; 
• Investment projects by foreign investors and economic organizations with foreign investment capital implemented in islands and border communes, wards, towns, coastal areas, and other regions affecting national defense and security.

 Step 2: Procedure for Applying for an Investment Registration Certificate  ​

• Components of the dossier: 
  • Document proposing the implementation of the investment project; 
  • Documents regarding the legal status of the investor; 
  • Documents proving the financial capacity of the investor; 
  • Investment project proposal; 
  • A copy of the document on land use rights or other documents determining the rights to use the location for the investment project; 
  • Explanation of the technology used in the investment project; 
  • Other documents related to the investment project and requirements regarding the conditions and capacity of the investor. 
• Implementation time:
  • Project under the investment policy of the Prime Minister: approximately 60 days;
  • Project under the investment policy of the provincial People's Committee: approximately 40 days;
  • Resolving authority: Prime Minister, provincial People's Committee.

Step 3: Apply for a Enterprise Registration Certificate

After obtaining the Investment Registration Certificate, the investor can choose the type of business to apply for the Enterprise Registration Certificate. Accordingly, the dossier includes:

• Application for enterprise registration;
• Company charter;
• List of members or shareholders;
• List of authorized representatives;
• Copies of personal identification documents if the founding member are individuals;
• In case where the investor is an organization: A copy of the Enterprise Registration Certificate or establishment decision; a document appointing an authorized representative along with a copy of one of their identification documents;
• Investment Registration Certificate.

The investor submits one set of the above documents to the Department of Planning and Investment. After 03 working days from the date of receiving valid documents, the Department of Planning and Investment will issue the Enterprise Registration Certificate to the investor.

7. When investing in Vietnam, can foreign investors reside permanently in Vietnam?

When investing in Vietnam, investors, shareholders contributing capital to enterprises in Vietnam, or representatives of foreign organizations investing in Vietnam are granted an investment temporary residence card (DT Card). To be issued this type of card, foreign investors need to prove their investment activities in Vietnam.

According to Law No. 27/VBHN-VPQH dated December 16, 2019, on the entry, exit, and residence of foreigners in Vietnam, and Law No. 51/2019/QH14 dated November 25, 2019, which amends and supplements several articles of the Law on entry, exit, transit, and residence of foreigners in Vietnam, the duration of the temporary residence card for foreign investors is specified as follows:​

• Temporary residence card type ĐT1 is valid for a maximum of 10 years. It is issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution valued at 100 billion VND or more, or investing in sectors, or industries eligible for investment incentives as decided by the Government;
• Temporary residence card type ĐT2 is valid for a maximum of 5 years. It is issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution valued from 50 billion VND to under 100 billion VND, or investing in sectors or industries encouraged for investment development as decided by the Government;
• Temporary residence card type ĐT3 is valid for a maximum of than 3 years. It is issued to foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution valued from 3 billion VND to under 50 billion VND;
• For foreign investors in Vietnam and representatives of foreign organizations investing in Vietnam with a capital contribution valued at under 3 billion VND, only the visa type ĐT4 will be issued, is valid for a maximum of 12 months.

8. What types of taxes must be paid when investing in Vietnam? 

When investing in Vietnam, foreign investors' businesses must pay the following types of taxes: 

• Business license tax: an annual tax, the amount of which is based on the registered capital or the annual revenue of the business; 
• Corporate income tax;
• Value-added tax: calculated according to the method chosen by the business at the time of establishment; 
• Personal income tax for employees.

9. Other questions and answers related to foreign investment in Vietnam 

(1) Trends in sectors attracting foreign investment 

• ​Processing and manufacturing industry; 
• Real estate sector; 
• Wholesale and retail trade; 
• Science and technology sector. 

In particular, the fields that the Vietnamese government encourages to attract foreign investment in the coming years are: electricity, electronics, semiconductors; renewable energy; high-efficiency agriculture; digital economy; digital transformation; innovation; research and development; and financial centers.

(2) What are the benefits of investing in industrial zones?

Firstly, regarding regulations and tax incentives: Industrial zones are often governed by tax policies and incentives from local or national governments. These incentives may include tax reductions, tax exemptions, and other supportive policies.

Secondly, regarding enterprise registration procedures: Enterprise registration in industrial zones is often simplified due to support from management agencies and a streamlined registration process.

Thirdly, regarding land management and land use: Land management in industrial zones is typically organized systematically, making it easier for businesses to lease land and utilize it for business development.

(3) Where can I find investment consulting lawyers in Vietnam? 

With the motto "Upholding Justice – Valuing Goodwill," Phong & Partners Law Firm provides all legal services with the highest quality, a result of dedication and effective support from the entire system for the best interests of clients. 

Investing in Vietnam requires significant contributions from investors in both capital and effort. Therefore, support from a team of professional and skilled lawyers will help ensure that this process for investors proceeds smoothly and is legally secure.