VINACHEM

New policy proposals may remove red tape and empower Vietnamese businesses to invest swiftly and competitively abroad.

Proposed reforms to the laws governing overseas investment are seen as a bold institutional breakthrough that could positively reshape the global strategies of Vietnamese enterprises.

Removing administrative hurdles

Many Vietnamese companies have grown into multinational firms. Lawyer Nguyen Hong Chung, CEO of DVL Ventures and an investment policy expert, highlighted this when reviewing the Ministry of Finance’s new proposal regarding outbound investment regulations.

“The suggestion to eliminate licensing in favor of a registration and post-audit model for overseas investment is a major institutional reform that would bring substantial benefits,” Chung asserted.

The clearest benefit would be the removal of administrative barriers. Under the Ministry of Finance’s proposed approach, the current requirement for investment approval by the National Assembly or the Prime Minister and for overseas investment registration certificates issued by the Ministry would be eliminated. Instead, investors would only need to register with the State Bank of Vietnam when transferring money abroad.

This would significantly streamline procedures and reduce compliance costs, especially as the current Investment Law requires authorities to manage a wide range of project details, including objectives, scale, location, scope, and capital.

Chung emphasized that this would particularly benefit private and small- to medium-sized enterprises (SMEs), allowing them to act swiftly in pursuing international opportunities, especially in fast-moving sectors such as trade, services, and technology.

Importantly, oversight of outbound investments would become more substantive. According to the Ministry’s drafting committee, once an investor registers with the State Bank, they would already hold approval from the host country (such as an investment license or company registration), making the investment more secure and verifiable.

This new system would also allow the central bank to track investment flows and repatriated funds more accurately via banking channels, enabling timely policy adjustments to protect balance of payments and foreign reserves. Furthermore, banks would have tools to address non-compliance, including suspending transfers or freezing investment accounts in urgent cases.

Vietnamese businesses must go global

Phan Huu Thang, President of the Vietnam Industrial Park Finance Association (VIPFA), cited Viettel, Vinamilk, TH Truemilk, and FPT as successful examples of Vietnamese companies investing abroad, alongside large state-owned economic groups.

“No one would have imagined a Vietnamese company building a dairy plant in Europe. Or that mobile users in multiple countries would choose Viettel as their default carrier. It’s time for Vietnamese enterprises to step out and become global investors,” he said.

Global markets are undergoing major realignment due to shifts in tariffs, trade policies, and emerging development trends. These changes, combined with the growing capacity of Vietnamese firms, are opening new doors. Thang sees overseas investment not just as an option, but a strategic move that should be encouraged to integrate Vietnamese businesses into global value chains, access advanced technology, expand markets, and attract new customers.

However, he noted that the main barriers Vietnamese firms face are not market challenges or capacity, but domestic administrative procedures. Under current law, even privately funded investments must still gain approval from Vietnamese authorities for aspects like structure, timeline, scale, and capital - areas typically governed by host country laws. Many companies argue that these Vietnamese approvals serve little practical purpose and slow down decision-making.

In contrast, most countries only monitor outbound fund transfers, restricting or banning them in specific cases to safeguard macroeconomic balance and ensure legal fund sources. They do not regulate the full scope of overseas investment activity.

As of now, Vietnam and Laos are the only countries that still issue certificates for outbound investment. While China maintains a similar requirement, it has relaxed the rule, applying it only to large projects and sensitive sectors. Most other countries have shifted to a system where investors register capital transfers through banks at the time of investment.

International experts agree that outbound investment can play a vital role in a developing country’s growth strategy. It can boost exports, support domestic firms' global expansion, and unlock growth opportunities.

Thang acknowledged that not all investments will be profitable, but called for a shift in mindset to recognize outbound investment as an essential component of national economic planning. He urged the government to complete and announce a comprehensive national strategy for outbound investment covering short-, medium-, and long-term objectives.

Additionally, a robust support framework for overseas investors should be established. This could include trade promotion activities, diplomatic support, and financial assistance for project deployment abroad.

Over 1,900 outbound investment projects active

As of June 2025, Vietnam had 1,916 valid outbound investment projects with total registered capital exceeding USD 23 billion. Most of these (67.4%) are small-scale projects under VND 20 billion (approx. USD 786,000), accounting for only 1.7% of total capital. Meanwhile, around 28% of the projects have investment capital over VND 20 billion, accounting for a dominant 98.3% of total outbound capital. The remainder are micro-projects worth under VND 1.2 billion (approx. USD 50,000).

All of these projects fall under the approval of either the Prime Minister or require overseas investment certificates. No projects to date have required National Assembly approval.

In the first half of 2025 alone, Vietnamese enterprises registered over USD 487 million in outbound investment, more than 3.5 times higher than the same period in 2024.