Update on new regulations in January 2026

Our Newsletter #42 would lead you on the following:

LEGAL UPDATE

I. Updates on notable provisions of the Investment Law 2025

On 11 December 2025, the National Assembly of Vietnam promulgated Law No. 143/2025/QH15 on investment, which will take effect from 01 March 2026 (the “Investment Law 2025”). The Investment Law 2025 continues the reform-oriented approach of the Investment Law 2020, with a focus on reducing pre-licensing requirements, simplifying administrative procedures, and enhancing flexibility in the management of investment activities, particularly for projects involving foreign elements and outbound investments by Vietnamese investors.

1. Reduction of conditional business lines

Pursuant to Article 7 of the Investment Law 2025, the list of conditional business lines has been streamlined from 227 to 198 business lines (will take effect from 01 July 2026). This reduction primarily targets service-related sectors, administrative-technical services, and intermediary service. Notable conditional business lines that have been removed include, among others:

1. Labor outsourcing services;
2. Employment services;
3. Digital signature certification services;
4. Tax procedure services;
5. Customs clearance services;
6. Fire prevention and fighting services;
7. Cosmetic surgery services; and
8. 22 other conditional business lines.

2. Abolition of the investment policy approval requirement for outbound investments

The Investment Law 2025 revises a number of procedures relating to the regulation of overseas investment activities by Vietnamese investors, as compared with the Investment Law 2020, including the following:

1. Instead of requiring investment policy approval by the National Assembly or the Prime Minister, the Ministry of Finance is designated as the central authority responsible for the issuance, amendment, and termination of Outbound Investment Registration Certificates. Reporting to the Prime Minister is only required for projects with large investment capital or those proposing special incentive or support mechanisms.
2. Investors are only required to register foreign exchange transactions, without having to apply for an Outbound Investment Registration Certificate, in the following cases:
   1. Outbound investment projects with investment capital below the threshold prescribed by the Government and not falling within conditional outbound investment sectors;
   2. Outbound investment projects related to national defense or security implemented pursuant to agreements between the Government of Vietnam and foreign governments; and
   3. Outbound investment projects of state-owned economic groups, state-owned corporations, and other economic organizations as prescribed by the Government.

3. Narrowing the cases requiring adjustment of investment policy approval

The Investment Law 2025 further reduces procedural burdens during project implementation by abolishing 02 cases that previously required adjustment of investment policy approval, namely:

1. An increase in total investment capital of 20% or more resulting in a change in the project scale; and
2. Changes to technology that had been appraised or consulted during the investment policy approval process.

At the same time, the Investment Law 2025 does not prescribe detailed provisions but instead adopts a more flexible approach with respect to the following 02 cases:

1. Instead of prescribing fixed thresholds for changes in land use area exceeding 10% or over 30 hectares, the Investment Law 2025 delegates the authority to specify such thresholds to the Government; and
2. The threshold for extension of project implementation progress has been extended from exceeding 12 months to exceeding 24 months.

II. Development and operation of artificial intelligence systems

On 10 December 2025, the National Assembly promulgated Law No. 134/2025/QH15 on Artificial Intelligence, which takes effect from 01 March 2026 (“AI Law 2025”). This Law establishes a comprehensive legal framework for the research, development, deployment, and use of artificial intelligence (“AI”), in the context where AI is becoming a key technology of the Industrial Revolution 4.0, creating significant opportunities for socio-economic development. Certain notable points are summarized as follows:

1. Fundamental principles in AI activities

Activities related to AI must comply with the following principles:

1. Placing humans at the center; ensuring human rights, privacy rights, national interests, public interests, and national security; and complying with the Constitution and laws;
2. AI shall serve humans and not replace human authority and responsibility. Human control and the ability to intervene in all decisions and actions of AI systems must be maintained; ensuring system safety, data security, and information security; and enabling the inspection and supervision of the development and operation of AI systems;
3. Ensuring fairness, transparency, impartiality, non-discrimination, and the prevention of harm to humans or society; complying with ethical standards and Vietnamese cultural values; and implementing accountability for decisions and consequences generated by AI systems; and
4. Promoting the development of green, inclusive, and sustainable AI; encouraging the development and application of AI technologies in a manner that ensures efficient energy use, resource conservation, and minimization of negative environmental impacts.

2. Prohibited acts

The following acts are prohibited in AI-related activities:

1. Abusing or misappropriating AI systems to carry out unlawful acts or to infringe upon the lawful rights and interests of organizations or individuals;
2. Developing, providing, deploying, or using AI systems for the following purposes:
   1. Committing acts prohibited under the law;
   2. Using falsified elements or simulating real persons or events to deceive or deliberately and systematically manipulate human perception or behavior, causing serious harm to the lawful rights and interests of individuals;
   3. Exploiting the vulnerabilities of vulnerable groups, including children, the elderly, persons with disabilities, ethnic minorities, or persons who have lost civil act capacity, have restricted civil act capacity, or have difficulties in cognition or behavioral control, thereby causing harm to themselves or others; and
   4. Creating or disseminating falsified content that is capable of causing serious harm to national security, public order, or social safety.
3. Collecting, processing, or using data for the development, training, testing, or operation of AI systems in violation of laws on data, personal data protection, intellectual property, or cybersecurity;
4. Obstructing, disabling, or distorting human supervision, intervention, and control mechanisms over artificial intelligence systems as prescribed under the AI Law 2025;
5. Concealing information that is required to be publicly disclosed, transparent, or explained; erasing or falsifying mandatory information, labels, or warnings in AI-related activities; and
6. Abusing research, experimentation, assessment, or certification activities relating to AI systems to commit acts in violation of the law.

3. Responsibilities of entities developing, providing, and using AI

Pursuant to the AI Law 2025, entities developing, providing, and using AI have the following responsibilities:

1. Classifying and notifying AI systems based on risk levels, including high-risk AI systems, medium-risk AI systems, and low-risk AI systems.
   • In particular, AI systems classified as medium-risk or high-risk must have a corresponding classification dossier. The provider is required to notify the classification results to the Ministry of Science and Technology via the national one-stop electronic portal on AI before such AI systems are put into use.
2. Transparency obligations: products created or modified using AI must be clearly labeled in an easily recognizable manner to distinguish them from authentic content.
3. Responsibilities for AI incident management and handling: developers, providers, deployers, and users of AI systems are responsible for ensuring safety, security, reliability, and for promptly detecting and remedying incidents that may cause harm to humans, property, data, or social order.

III. Notable provision about Law on the specialized court at the international financial centre 2025

On 27 June 2025, the National Assembly promulgated Resolution No. 222/2025/QH15, under which the International Financial Centre (“IFC”) is defined as an area with clearly defined geographical boundaries established by the Government and located in Ho Chi Minh City and Da Nang City, concentrating a diverse ecosystem of financial services and supporting services, and subject to the mechanisms and policies prescribed in this Resolution. Subsequently, on 18 December 2025, the Government issued Decree No. 323/2025/ND-CP, specifying the locations of the IFC in Ho Chi Minh City and Da Nang City as follows:

• In Ho Chi Minh City: The area within the administrative boundaries of Sai Gon Ward, Ben Thanh Ward, and the Thu Thiem Urban Area under An Khanh Ward, Ho Chi Minh City;
• In Da Nang City: The area located in An Hai Ward, including land plots A12, A13, A14, A15 and A*; the 20-storey Information Technology Building in Software Park No. 2 in Hai Chau Ward; the northwestern land area of the access road to Thuan Phuoc Bridge in Hai Chau Ward; and the land parcel at the corner of Nhu Nguyet – Xuan Dieu Streets within the planned land reclamation development area opposite Nguyen Tat Thanh Street.

On 11 December 2025, the National Assembly promulgated the Law on the Specialized Court at the International Financial Centre 2025 (“SCIF Law”), which takes effect from 01 January 2026. Pursuant to Article 4.1 of the SCIF Law, the Specialized Court at the International Financial Centre (“SCIF”) is a court within the People’s Court system, organized and operating in accordance with the SCIF Law, and having jurisdiction to adjudicate and resolve cases arising within the International Financial Centre. Accordingly, the SCIF Law contains several notable provisions, including the following:

1. Application of law in proceedings before the SCIF

Pursuant to Article 6 of the SCIF Law, the application of law is prescribed as follows:

1. The procedural law applied in resolving cases before the SCIF shall comply with the provisions of the SCIF Law and the Rules of Procedure, ensuring flexibility and streamlined procedures.
   • Pursuant to Article 4.2 of the SCIF Law, the Rules of Procedure are legal regulations promulgated by the Supreme People’s Court for the settlement of cases before the SCIF. At present, the Supreme People’s Court is in the process of developing a set of Rules of Procedure appropriate to the SCIF.
2. The application of substantive law in resolving cases at the SCIF shall be carried out as follows:
   1. Vietnamese law, foreign law, or international commercial customs may be applied in accordance with the parties’ agreement where a transaction involves at least one foreign individual or organization, except for cases relating to real estate as prescribed by law.
      • Note: Where the parties do not agree on the applicable law, or where such agreement cannot determine the applicable law, the applicable law shall be the law of the country having the closest connection to the disputed legal relationship.
   2. The law governing investment and business activities within the IFC shall be applied where all parties to the transaction are Vietnamese individuals or organizations.
   3. The law of the country where the real estate is located shall be applied to cases relating to ownership, other rights over real estate, leasing of real estate, or the use of real estate as security.
3. Please also note that foreign law and international commercial customs shall not be applied where the consequences of such application are contrary to the public order of Vietnam.

2. Jurisdiction of the SCIF

Pursuant to Article 13.1 of the SCIF Law, the SCIF has jurisdiction to resolve the following cases, except for cases involving public interests or interests of the State:

1. Disputes relating to investment and business between members of the IFC, or between IFC members and other organizations or individuals that are not members of the IFC;
2. Requests for recognition and enforcement in Vietnam of judgments or decisions of foreign courts, and foreign arbitral awards resolving disputes between IFC members, or between IFC members and other organizations or individuals that are not members of the IFC;
3. Requests relating to arbitration proceedings resolving disputes between IFC members, or between IFC members and other organizations or individuals that are not members of the IFC, in accordance with the law on commercial arbitration;
4. Other cases relating to investment and business activities within the IFC in which at least one party is an IFC member, as prescribed by the Supreme People’s Court.

3. Other notable points regarding the SCIF

With respect to the SCIF Law, investors, organizations, and individuals should note the following:

1. The language used at the SCIF is English, or English accompanied by a Vietnamese translation. Judgments and decisions of the Court shall be issued in English, or in English accompanied by a Vietnamese translation.
2. The submission and handling of petitions, service of process, notifications of procedural documents; payment of court fees, charges, and other procedural costs; submission of documents and evidence; hearings, trials, and other procedural activities may be conducted via electronic means during the adjudication and resolution of cases at the SCIF.
3. Statute of limitations:
   1. For cases specified in Items 2.(i) and 2.(ii) above, the statute of limitations for initiating proceedings or submitting requests is 06 years from the date on which the event giving rise to the proceedings occurred;
   2. For requests specified in Items 2.(iii) above, the statute of limitations shall be governed by the Law on commercial arbitration.
   3. For cases specified in Items 2.(iv), there are currently no specific regulations governing this matter.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. We would love to hear from you.

Date: 29 January 2026

Writer: BLawyers Vietnam

Legal News and Update Team

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Newsletter #42 (EN version)

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