New provisions of the decree detailing and guiding the Investment Law

The Government issued Decree No. 96/2026/ND-CP dated March 31, 2026, detailing and guiding the implementation of certain provisions of the Investment Law. The decree’s main focus is the concretization of “special investment procedures” (Articles 46 to 50), designed to provide incentives for projects implemented in industrial zones, export processing zones, high-tech zones, and economic zones.

Special investment procedures: from pre-approval to post-approval

Under the new mechanism, eligible investors can choose a registration and written commitment approach instead of the lengthy and complex appraisal process previously required for construction, environmental, and fire safety issues before licensing. Investors submit a dossier along with a commitment to comply with national technical standards.

Management authorities of industrial zones and high-tech parks evaluate the dossiers and issue an Investment Registration Certificate within 15 working days. The reform shifts the management approach from “pre-approval” to “post-approval,” aiming to reduce compliance costs and shorten the time to bring projects into operation.

Enforcement and penalties for non-compliance

To ensure enforcement, the decree defines responsibilities of state agencies for inspection and supervision. If a project fails to meet its commitments after becoming operational, investors face serious penalties, including suspension or termination of the project. The framework is intended to balance trust in business conduct with strict legal discipline.

Special investment incentives for strategic technologies

Alongside procedural reforms, Decree No. 96/2026/ND-CP establishes special investment incentives (Article 21) to attract global technology leaders and accelerate future-oriented industries in Vietnam. The decree expands and clarifies eligible beneficiaries with quantitative criteria.

Projects identified as qualifying include those related to strategic technologies, semiconductor manufacturing, artificial intelligence (AI), large-scale data centers, and 5G infrastructure.

For example, semiconductor R&D projects or AI data centers with registered capital of 6,000 billion VND or more and disbursement within five years are eligible for the highest levels of incentives for corporate income tax and land lease.

Priority for innovation and startup ecosystems

The decree also grants special priority to the National Innovation Center (NIC) and startup ecosystems, reflecting a strategic focus not only on attracting foreign direct investment but also on core technology transfer and building domestic capacity for the economy.

Updated incentive areas and higher-tier eligibility

The list of investment-incentive areas has been updated. Free trade zones and international financial centers are placed in the group eligible for the highest incentives, intended to support new economic models.

Review mechanism for conditional business requirements

The decree introduces conditions and a mechanism for reviewing investment in business by listing sectors with conditional business requirements and sectors that will shift to a post-approval management approach.

For sectors with conditional investment and business requirements, ministries must annually assess the rationality and feasibility of these conditions. If a condition is no longer appropriate or creates unreasonable barriers, the responsible authorities should propose removal or modification.

This is intended to help avoid “license-by-license” obstructions after reforms.

Equal treatment for foreign investors

For foreign investors, the decree reaffirms the principle that, except for sectors in the “restricted access to markets” list, foreign investors will enjoy equal access and treatment as domestic investors.