Green channel mechanism: More options for investors

According to the latest Draft that is being finalized, investment projects in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, free trade zones and functional areas in economic zones may have the right to choose to register for investment under special investment procedures (green channel mechanism). This means that more investment decisions can be implemented very quickly when the time to complete related procedures can be calculated in weeks, instead of months or years as usual.

But the desires of investors and businesses are probably greater.

During the discussions and comments on the Draft Investment Law (replacement), the information that was mentioned a lot was that the economies in the region, such as Thailand, Indonesia... will soon amend their investment laws, to strongly attract foreign investment flows in the context of huge impacts from the US tariff policy and global geopolitical instability...

Competition in investment institutions may put more pressure on the target of making Vietnam's investment environment among the top three ASEAN countries by 2028 as set out in Resolution No. 66-NQ/TW (on innovation in law-making and enforcement to meet the country's development requirements in the new era).

It should be reiterated that, since the beginning of this year, according to Article 36a of the Investment Law, investors in a number of investment projects in the fields of science and technology investing in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, free trade zones and functional zones in economic zones have the right to choose to register for investment under special investment procedures.

With this mechanism, investors do not have to carry out procedures for investment policy approval, technology appraisal, environmental impact assessment reports, detailed planning, construction permit issuance and procedures for approval, acceptance and permission in the fields of construction, fire prevention and fighting. Instead, investors will commit to implementing standards, conditions and technical regulations according to relevant laws. This is also the basis for state management agencies to implement the post-inspection mechanism.

As soon as it was issued, this procedure received great support and agreement from investors and management boards of industrial parks and economic zones. The green channel mechanism was even recognized by businesses and investors as a bright spot in the flow of business law in 2024. But along with that, the desire of investors to "be applied as a green channel" increased.

Normally, at each stage of investment project implementation, the investor will have to carry out procedures and apply for different types of licenses until the investment project comes into operation. For example, the procedure for approving the investment policy (if the project is subject to approval) during the project preparation stage. If the project has a construction component, the investor must have an appraised feasibility study report; if the project has technology that has a negative impact on the environment, the technology must be appraised by the technology management agency... In the case of environmental impact assessment according to environmental laws, the project must have an approved environmental impact assessment report; procedures for land allocation, land use purpose conversion...

During the project implementation phase, if there is a construction component, the investor must carry out the procedures for approving the design after the facility, applying for a construction permit, environmental permit; technology transfer registration certificate... At the project completion phase, for some construction works, it is necessary to carry out the procedures for project acceptance, fire prevention and fighting acceptance...

The above journey, if favorable, can be completed within about 275 days, but according to businesses, it usually takes 2-3 years. The problem is that many projects in industrial parks, export processing zones, high-tech zones... although not subject to the green channel mechanism under current regulations, have the basis to control and implement the post-audit mechanism similar to projects already listed in the scope of application. Many businesses are even hoping to expand this mechanism to projects outside industrial parks, when the Draft Investment Law (replacement) is proposing to amend and supplement regulations on investment policy approval procedures with the orientation of narrowing the scope of projects that must comply.

With the principle being applied in the Draft (i.e. the post-control mechanism gradually replaces pre-control), expanding the list of products subject to the green channel is completely feasible.

Source: https://baodautu.vn/co-che-luong-xanh-them-quyen-lua-chon-cho-nha-dau-tu-d398486.html