NO&T Asia Legal Review
Introduction
In June 2020, the National Assembly of Vietnam passed a new Investment Law, which will take effect from 1 January 2021 (“New LOI”).
Generally, the New LOI introduces a reform to the investment conditions and procedures to remedy loopholes and conflicts in the current laws and regulations regarding land and construction, as well as making the investment regulations clear and more transparent. Most importantly, the New LOI pays more attentions to the national defense and security as well as the quality and effectiveness of foreign investment.
Below we discuss the licensing procedure and the major changes affecting foreign investment in comparison to the current Investment Law 2014 (“LOI”).
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