Draft amendments to the Law on Investment are intended to meet the requirement for growth of at least 10%, enhance Vietnam's competitiveness in attracting foreign investment and improve the quality of capital inflows, particularly the participation of Vietnamese businesses in global value chains. Finance Minister Ngo Van Tuan made the statement on November 2 during a discussion of the bill at the second session of the 16th National Assembly.
According to the minister, the draft law is being revised against a forecast that total social investment demand in 2026-2030 will be 2.21 times higher than in 2021-2025. Disbursed foreign direct investment alone needs to reach an annual average of 30-40 billion USD, six to seven times the level recorded in the previous period.
This is one reason for further improvements to the investment environment to make Vietnam more attractive to international investors. The amendments also aim to institutionalise Party resolutions on FDI attraction reform and revise the Land Law, spatial planning and regional spatial restructuring.
Tuan stressed that competition among countries for FDI is intensifying. Many countries in the region and elsewhere are offering incentives in sectors prioritised by Vietnam, including electronics, computers, mobile phones, semiconductor chips and digital transformation. He said Vietnam needed to keep refining its incentive policies to improve competitiveness and attract high-quality projects.
However, the central issue is not only the volume of capital attracted but also tangible results. The draft law therefore provides special investment incentives for priority industries and sectors, particularly innovation, scientific and technological transfer, and digital transformation.
Investment support policies should be tied to measurable outcomes, with specific criteria for inspection, supervision and evaluation. The minister said the drafting body would fully consider deputies' views on this issue and study conditions for terminating support if investors fail to fulfil their commitments.
Clearly defining responsibilities and conditions for terminating incentives should also reduce the risk of international investment disputes, which are often complex.
Previous amendments to the Law on Investment focused mainly on cutting business conditions: 62 business lines were removed and requirements for 14 conditional business lines were reduced.
Taking deputies' opinions into account, the minister said a comprehensive review and assessment were needed to clearly distinguish business and investment conditions from market-access and market-entry requirements. This should ensure consistency between the Law on Investment and other laws and improve the long-term stability of the legal system.
Regarding the National Investment Fund, Tuan said it was operating under existing regulations and had initially functioned in a stable and effective manner.
To strengthen oversight and ensure that resources are used for their intended purposes and effectively, the minister proposed annual State Audit examinations of the fund's operations alongside regular inspections.
For market-access conditions under the authority of the Prime Minister and the National Assembly Standing Committee, the Government will prepare a report and submit it to the National Assembly. The body will consider amendments and supplements under simplified procedures while respecting the relevant mandates and required timeline.
Tuan affirmed that the drafting body would seriously and fully consider deputies' opinions to finalise the draft law for submission to the National Assembly for consideration and approval.
Sources: VietnamPlus / Vietnam News Agency
