Procedural reform: Vietnam is listening to the voices of FDI investors

(Chinhphu.vn) - Vietnam is implementing one of the most comprehensive business environment reform programs ever, aiming to cut 30% of administrative procedures, in the context of international investors expecting a more open, transparent and flexible investment environment. These reforms are considered the key to helping Vietnam become a faster, friendlier and more competitive investment destination in the region.

With trade openness exceeding 200% of GDP, Vietnam is currently the second most trade-integrated economy in the world.

On October 4, 2025, Prime Minister Pham Minh Chinh issued Official Dispatch No. 187/CD-TTg, requesting ministries, branches and localities to strengthen control, focus on cutting and simplifying administrative procedures and business conditions, and at the same time build unified administrative processes, regardless of administrative boundaries.

According to Official Dispatch 187/CD-TTg, 14 ministries and ministerial-level agencies have proposed to cut 2,051 out of 4,888 administrative procedures, reaching 42% of the national reform plan. In parallel, 2,263 out of 6,974 business conditions are also being reviewed for streamlining - equivalent to 32% of the overall target. The Prime Minister requested all ministries, branches and localities to reduce at least 30% of administrative processes and procedures, creating more favorable conditions for businesses to operate.

Then, on October 10, 2025, the Prime Minister continued to issue Official Dispatch No. 194/CD-TTg, directing the review and acceleration of investment procedures for 2025, clearly demonstrating the determination to promote institutional reform and improve national competitiveness.

FDI community calls for 'digital reform' and flexible licensing process

Recently, the foreign-invested enterprises (FDI) sector sent a petition to the Prime Minister through Committee IV (Private Economic Development Research Committee). The petition focuses on solutions to simplify the investment licensing process, promote digitalization with the "electronic one-stop shop" mechanism and improve national competitiveness. The main proposals include: (i) Abolishing or simplifying the Investment Registration Certificate (IRC) to shorten the approval time; (ii) Applying the "negative list" model and the sandbox legal framework for new industries such as fintech, electric vehicles and artificial intelligence; (iii) Developing a unified electronic administrative portal to reduce compliance costs; (iv) Controlling industrial land rental prices and improving vocational training quality to meet the human resource needs of FDI enterprises.

According to a survey conducted in July 2025 by BW Industrial, a leading industrial real estate developer in Vietnam and also the drafter of the petition, and YKVN law firm, up to 74% of foreign enterprises support the abolition of IRC, clearly showing the desire to improve the investment process in a faster, more transparent and more efficient way. The survey was conducted with international investors from Singapore, the United States, Japan, South Korea, China, Denmark, Australia and other countries, with investment capital ranging from less than 10 million USD to more than 500 million USD, spanning many fields such as manufacturing, education, logistics, tourism, retail and services.

Mr. Lance Li, General Director of BW Industrial

"The investment process in Vietnam is not yet optimized. In Singapore, businesses can register in just 1-2 days via the BizFile portal; in Malaysia, the entire procedure takes only 3-5 days via MyCoID. Meanwhile, in Vietnam, applying for an IRC can take months, even years if the project involves land and infrastructure," commented Mr. Lance Li, General Director of BW Industrial.

Ms. Tran Thanh Hao, Legal Director of BW, said that the current IRC model still has a "pre-check" mindset, which does not bring about appropriate management efficiency. Implementing the reform will help reduce up to 80% of the time to process foreign investment procedures, shortening the market entry process for investors from several months to just a few days — equivalent to Singapore and Malaysia.

With a trade openness exceeding 200% of GDP, Vietnam is currently the second most trade-integrated economy in the world, after Singapore, according to the World Bank. Data from the Vietnam Association of Foreign Investment Enterprises (VAFIE) and the General Statistics Office (GSO) show that the FDI sector contributes 18.7% of GDP and creates 35.3% of total employment nationwide. In 2024 alone, Vietnam attracted 38.2 billion USD in registered FDI capital, with 25.3 billion USD in disbursed capital, up 9.4% over the same period last year - the highest level up to that point, according to a report by the Foreign Investment Agency (FIA) under the Ministry of Finance./.

Source: https://baochinhphu.vn/cai-cach-thu-tuc-viet-nam-dang-lang-nghe-tieng-noi-tu-cac-nha-dau-tu-fdi-102251027120201814.htm