An automotive and motorcycle parts production line at Vietnam Precision Industrial Co., Ltd. No. 1 in Ba Thiên 2 Industrial Park, Phú Thọ province. VNA/VNS Photo

HÀ NỘI — The Ministry of Finance (MoF) has proposed easing market access conditions for foreign investors and extending "green-lane" special investment procedures beyond functional zones to cut administrative hurdles and speed up project implementation, amid growing competition for investment based on institutional quality and administrative efficiency.

The draft Law amending and supplementing several articles of the Law on Investment aims to institutionalise the Political Bureau's Resolution No. 10-NQ/TW dated June 8, 2026 on the development of the foreign-invested economic sector. It focuses on removing key barriers to market entry, project timelines, and marine area allocation.

Easing non-essential market access barriers

Under the draft Law, the Government will periodically adjust market access restrictions for foreign investors based on socio-economic conditions and management requirements. This approach could shorten policy lags amid rapid changes in international capital flows, technology and supply chains, while Việt Nam is shifting its investment attraction focus from quantity to quality and efficiency.

Adjustments will ensure transparency, consistency, and non-discrimination without indiscriminate market opening or fully abolishing existing requirements. Sector-by-sector reviews will remain linked to national defence, security, and strategic interests.

The MoF's reviews show that out of 91 restricted business sectors, 10 currently require foreign investors to form joint ventures without limiting their foreign ownership ratio. Foreign investors can hold up to 99.9 per cent of equity but must still retain a domestic partner. This procedural requirement inflates costs and delays market entry without significantly affecting capital control.

While Resolution No. 10-NQ/TW affirms foreign-invested enterprises as an integral component of the economy entitled to equal treatment, it also highlights existing shortcomings such as limited technology transfer and weak linkages with local businesses. Consequently, easing market access will be tied to standards regarding technology, environmental protection, domestic production linkages, and value creation.

In drafting the guiding decree, the MoF plans to coordinate with relevant ministries, agencies, and business associations to further review areas where conditions could be eased in line with the market-opening roadmap.

Extending fast-track procedures outside functional zones

Alongside market access conditions, the draft proposes expanding eligibility for the special "green-lane" investment mechanism. Under Article 28 of the Law on Investment, special procedures based on investor compliance commitments are restricted to industrial parks, export processing zones, high-tech zones, centralised digital technology zones, free trade zones, international financial centres, and functional zones in economic zones.

The new proposal extends this fast-track framework to priority projects located outside these functional zones on state-managed land. This step institutionalises support for large-scale strategic technology projects with inter-regional impacts and the potential to lead supply chains, as well as hi-tech projects committed to technology transfer to Việt Nam enterprises.

However, the "green-lane" mechanism shifts focus from pre-approval scrutiny to post-investment oversight, establishing strict liability and penalties for non-compliance.

Resolving marine area allocation issues

The draft law also addresses obstacles facing projects seeking the State's allocation of marine areas. According to the ministry, the law on marine-area allocation does not provide for investor selection, while the Law on Investment does not fully cover cases in which investment policy approval and investor approval are granted simultaneously for such projects.

To address legal gaps where investment laws lack provisions for approving investors in marine area projects not subject to auctions or bidding, the draft adds explicit legal grounds for simultaneous approval of investment policy and investors.

Additionally, the draft empowers the Government to exempt small-scale marine activities (such as household aquaculture or minor recreational services) from formal investment policy approvals, reserving strict regulatory processes for major commercial projects.

These combined reforms aim to reduce unnecessary administrative burdens while maintaining effective state oversight, with ultimate success depending on transparent implementation guidelines and robust post-approval monitoring. — VNA/VNS