Question
What is the special investment procedure under the Law on Investment 2025? Is a project implemented under this procedure automatically entitled to special investment incentives?
Answer
The Law on Investment 2025 introduces the special investment procedure under Article 28 to simplify the process of implementing investment projects. However, many investors confuse the special investment procedure with special investment incentives and support provided under Article 17 of the same Law. These are two separate legal mechanisms with different eligibility requirements and purposes.
Under Article 28 of the Law on Investment 2025, investors may choose to apply the special investment procedure for projects located in industrial parks, export processing zones, high-tech parks, concentrated digital technology parks, free trade zones, international financial centers, and certain functional zones within economic zones. A key feature of this mechanism is the simplification of several administrative procedures prior to the issuance of the Investment Registration Certificate (IRC), thereby shortening the project implementation timeline.
In contrast, special investment incentives and support under Article 17 are available only to projects in priority sectors, such as high technology, innovation, semiconductors, data centers, artificial intelligence (AI), and other projects that satisfy statutory requirements relating to investment capital, disbursement progress, or other prescribed criteria. Eligible projects may enjoy corporate income tax incentives, land-related incentives, and other forms of investment support.
Accordingly, choosing the special investment procedure does not automatically entitle a project to special investment incentives. A project may benefit from such incentives only if it independently satisfies all conditions set out in Article 17 of the Law on Investment 2025 and its implementing regulations.
In practice, many investors assume that projects processed under the special investment procedure will automatically receive tax or land incentives. This is a common misconception. Investors should carefully determine which legal mechanism applies to their project in order to maximize available benefits while ensuring compliance with Vietnamese investment laws.
Conclusion
The special investment procedure and special investment incentives and support are two independent mechanisms under the Law on Investment 2025. While the former is intended to simplify and accelerate investment licensing procedures, the latter is available only to projects meeting specific statutory requirements. Therefore, applying the special investment procedure does not automatically qualify a project for special investment incentives.
If your business requires legal advice on the special investment procedure, investment incentives, Investment Registration Certificates (IRC), or other legal matters relating to investment in Vietnam, please contact SB Law. Our experienced lawyers and legal professionals are ready to provide timely and practical legal support.
