70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
What's new in Vietnam's amended Investment Law?
Ngoc Mai 18:41, 2020/06/17
This law version bans the debt collection service.

The National Assembly (NA) on July 17 approved the revised Law on Investment with the endorsement of 92.34% of its deputies present, with several major changes.

 The National Assembly on July 17 approved the revised Law on Investment with the endorsement of 92.34% of its deputies present. Photo: Quochoi.vn

Among new changes in this law version, the debt collection service has now been banned.

Meanwhile, the law also stipulates specific sectors and targets entitled to investment incentives, mainly those in fields of hi-tech, innovative startups, R&D, production of new materials, new and clean energies, IT products, digital content, among others.

The law also provides incentives for projects with investment capital of over VND3 trillion (US$128.4 million), given the condition that investors have to disburse at least VND1 trillion (US$42.8 million) within the first three years.

Projects having disbursed at least VND10 trillion (US$428 million) in three years since receiving the investment license would receive special incentives.

Regarding investment procedures in forms of capital contribution or stake acquisition, many NA deputies said it is essential to have strong measures to prevent such investment channels in strategic locations on the ground of national security.

The NA Standing Committee said there should be a balance between national security and investment attraction for socio-economic development, especially at coastal and remote areas.

Therefore, the committee suggested investments via capital contribution or stake acquisition should meet criteria related to market access and national security.

Notably, the law would not include requirement for the prime minister’s approval regarding projects with investment capital of VND10 trillion (US$428 million) as NA deputies said the capital belongs to private investors so they decide what to do with their money, not the government.

The revise Law on Investment is set to take effect on January 1, 2021.

RELATED NEWS
TAG: Vietnam National Assembly investment incentives Law on Investment debt collection services ban FDI
Other news
15:07, 2024/03/13
Foreign capital set to dominate Vietnam’s M&A landscape
The positive trend of foreign capital in the M&A market this year follows the momentum of 2023, where the top five largest deals involved foreign investors.
19:51, 2024/03/04
Samsung to invest US$1 billion annually in Vietnam
Samsung's R&D center currently employs 2,400 engineers, with Vietnamese engineers playing a crucial role in researching AI features for the new Galaxy S24 phone series.
15:05, 2024/02/29
Thai bank acquires Vietnamese finance company
Thailand's fourth-largest bank has agreed to acquire all the equity of Home Credit Vietnam for US$865 million.