For foreign investors who have been following Vietnam’s development and considering Vietnam as one of the choices for their investment decision, they usually ask one practical question before entering, especially from the year 2026, that if the Vietnam investment Law 2025 makes this easier, or more complicated for investing and doing business here. 

The Vietnamese lawyers’ answer is as ironic and interestingly the same: both.

Let us explain why.

The Vietnam investment Law 2025, effective in 2026, aims to make the entry path more workable, but it also makes the compliance more strict and less forgiving.

For our positive thinking mindset, that is good news if your scope of business is clear, and your setup is realistic.

It will be challenging if you start with vague activities, minimal capital, and a fix later mindset plan.

Quick Reference of Vietnam Investment Law 2025

• The Vietnam investment Law 2025 takes effect March 1, 2026 and the conditional business list will be narrowed from July 1, 2026.
• Legal entry can be easier, but you need to early check if the investment areas belong to the list of prohibited, conditional, or non-conditional area lists.
• In practice, starting with low capital often collide with Vietnam’s expectations of a quality FDI project, especially if investor residence planning matters.
• The investment amount of USD 120k (VND 3 billion) remains a key practical threshold with DT3 visa and is eligible for Temporary Residence Card (TRC) validity up to 3 years. 

When Does Vietnam Investment Law 2025 Apply?

•       From March 1, 2026, the Vietnam investment Law 2025 generally takes effect and becomes the main baseline for investment related procedures and compliance expectations.
•       From July 1, 2026, the regulation on list of conditional business lines take effect.

This matters because many foreign investors enter Vietnam in phases. They may start with steps to set up a legal entity, rent an office, hire a small team, and begin testing the market, then expand once the business model proves itself.

With the above timeline of regulation coming into effect, it means you can set up early in the year and use that period to validate your scope to answer questions if you are truly operating in an unconditional business area and are you clear on market access rules for foreign investors.   

How Entering Vietnam is Easier?

A more workable entry sequence for foreign investors

The Vietnam investment Law 2025 supports a more flexible sequence where a foreign investor may establish an entity and apply for ERC in connection with implementing a project before completing certain IRC issuance or adjustment procedures while still meeting market access conditions at establishment.

This helps because it can reduce early dead time when the business needs to lease, hire, and set up operations.

Special investment procedures in designated zones

The Vietnam investment Law 2025 provides for special investment procedures for projects located in certain zones for instance industrial parks, high-tech parks, digital tech zones, Free Trade Zones, international financial centers, etc.

This depends on location and project characteristics, not for every project.

Why Compliance in Vietnam Investment Law 2025 Matters More?

At the start of the setting up of company in Vietnam, the investors need to be specific about its business activities. Even if the list of conditional business lines becomes more streamlined, investors still need to verify their real activities are being properly categorized into:

1. Not prohibited or banned business lines
2. Not conditional or if conditional, you need to comply with the conditions and apply for licenses.
3. Not restricted under foreign investor market access conditions for instance ownership limits, scope limits, licensing requirements.

With the Vietnam investment Law 2025, a trend across is going focusing on:

• fewer permission steps upfront in some areas,
• stronger expectation that you can show records and consistency later.

That means, contracts, invoices, staffing, and actual operations must align with what you registered and what you claimed.

That pushes companies to set up internal compliance basics earlier.

Minimal Capital Mindset Not Suitable in Vietnam

We come across investors with a very positive mindset and wish to incorporate companies with minimal capital, because in developed markets they can start lean, prove the model, then raise funds and increase capital later.

Not in Vietnam.

That approach often creates friction. Vietnam has relied heavily on FDI, and regulators and counterparties frequently expect capital that matches the project plan. When the capital looks too small for the stated scope, the project may face extra questions, slower processing, and practical limits, especially if the investor expects a longer stay plan.

Is VND 3 billion still a meaningful threshold for investor to apply for TRC for two to three years?

Yes.  VND 3 billion remains the key threshold in the investor classification framework.

• DT3 commonly applies where investment capital is VND 3 billion to under VND 50 billion. 
• DT3 is commonly associated with temporary residence card (TRC) validity up to 3 years. 
• DT4 (under VND 3 billion) is typically shorter term and often does not support the same TRC profile. 

In our practical opinion, if the investor wants the government and the market to consider the project as quality, and if investor residence planning is part of the roadmap, VND 3 billion is often the planning baseline, unless there are clear sector reasons to justify a lower figure.

With the transformation and transition of policy of Vietnam to encourage AI, chip making, automation, digital assets, international financial center, free trade zones, the expectation of capital is much more.

Step-by-Step Entry Plan and Comply in Vietnam

Step 1: Define the Vietnam scope

You should be able to explain the business activities in simple terms.  This single sentence define market access conditions, licensing, contracts, staffing, and capital logic.

Step 2: Check the business lines against conditions

This will help ensure if the business activities belong to:

• prohibited lines
• conditional lines
• market access conditions for foreign investors

Step 3: Choose the right company structure

Most foreign investors use one of these:

• Single-member LLC
• Two-or-more-member LLC
• Joint Stock Company (JSC), which is useful for multi-shareholder governance and future fundraising.

Step 4: Check the registration procedures

Check the procedures to start entity establishment and apply for ERC and whether IRC related steps is needed.

Step 5: Set capital that matches the plan

Most of the time, there is no requirement on minimum capital for every business line.  But the immigration and credibility ecosystem make certain thresholds practically important. DT3 starts at VND 3 billion and is commonly linked to TRC validity up to 3 years. 

Step 6: Remember to comply strictly to avoid fine

Remember to ensure compliance post setting up, and during the operation in Vietnam on regular basis.  The compliance will be needed on various aspects including but not limited to taxes, regular reporting, labour.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/vietnam-investment-law-2025-smoother.html

   Trust matters. Today, more than ever.

Across industries, many companies are now being asked. directly or indirectly, to demonstrate ESG compliance in Vietnam. This request may come from a foreign buyer. Or a lender. Or a government official. But the meaning is the same: prove that your business is responsible.

Buyers ask questions. Investors dig deeper. Governments introduce new rules. Suddenly, and in an interesting way, it is not just about making money. It is about how the money is made.

In Vietnam, businesses are waking up to a new challenge. One that does not come from taxes or competitors. But from three small letters that carry big weight: ESG.

You might have heard the term before. Maybe in a meeting. Maybe on the news. Maybe in a proposal that didn’t go through.

If you are still unsure, you are not alone.

In here, we will explain why ESG compliance in Vietnam is no longer a trend. It is now a business language. One that speaks to profits, people, and the planet.

And for businesses that understand it early, it creates a powerful edge.

The New Business Requirement You Can’t Afford to Ignore

In the past, legal compliance was enough. Follow the law. Pay your taxes. Stay out of trouble. And business would be just fine.

Not anymore.

Customers are asking where your products come from. Investors want to know how you treat your workers. Regulators are monitoring your environmental impact.

This is not just happening in developed countries. It is happening in Vietnam too. More and more companies are being asked to demonstrate that they understand, apply, and improve ESG standards.

The idea of ESG stands for:

• Environmental (reducing pollution, saving energy, using resources wisely),
• Social (fair labor, community support, worker safety), and
• Governance (good leadership, anti-corruption, transparency).

For any company trying to grow, trade internationally, or attract funding, ESG compliance in Vietnam is no longer optional. It is expected.

A Competitive Advantage for the Businesses Who Get It Right

While some companies feel ESG is a burden, the smart ones see it differently.

ESG is a chance. A doorway. A reputation builder.

When you understand ESG compliance in Vietnam, you gain:

• Easier access to foreign buyers
• Better chances of funding or credit
• A stronger reputation in your industry
• Loyal customers who value ethics
• Lower long-term risks

We will help you break down what ESG really means in simple terms, how it applies in Vietnam, and what steps to take to turn ESG into a tool for success, not just survival.

The Vietnam Business Scene Is Changing

Let’s imagine two factories. Both are in Vietnam. Both make the same product. Both offer similar prices.

But one factory has documented environmental practices, provides health insurance to workers, and publishes transparent business reports. The other does not.

Now imagine a buyer is choosing a supplier. Guess who they will pick?

This situation is not rare. It is becoming the rule, not the exception.

Vietnam’s position in global supply chains is growing. But with opportunity comes expectation.

Foreign partners want to work with companies they can trust. ESG compliance in Vietnam helps businesses signal that trust. It shows that a company is thinking long-term, not just short-term. And it shows that you care, not only about the bottom line, but also about how the business impacts the world.

What’s Driving ESG Compliance in Vietnam and Why It’s Real

Here are seven real reasons why ESG compliance in Vietnam is becoming a necessity for businesses:

Trade Agreements Demand It

Vietnam is part of multiple free trade agreements, like the EVFTA and CPTPP. These agreements include commitments on labor rights and the environment. That means businesses that want to enjoy the benefits of these deals must also comply with ESG-related obligations.

Foreign Investors Are Setting Higher Standards

When foreign companies invest in Vietnam, they now often ask about ESG risks. They want to know: are you polluting local rivers? Are you using child labor? Are your contracts transparent? If the answer is unclear, they may walk away or demand expensive audits.

Local Regulations Are Evolving

Vietnam’s laws are catching up. The latest Environmental Protection Law, Labor Code, and Enterprise Law include many ESG principles. Listed companies must already report on environmental and social matters. This pressure is likely to grow and spread to private companies.

ESG Compliance in Vietnam Saves You Money in the Long Run

Companies with ESG systems in place often have fewer fines, better risk management, and more stable teams. By preventing problems early, businesses can avoid lawsuits, protests, and costly shutdowns.

Consumers Are Changing Their Expectations

People, especially younger generations, want to buy from responsible brands. Whether in retail, food, services, or real estate, customers now look beyond the product. They want to know who made it, and how.

When companies show strong ESG compliance in Vietnam, they earn trust. And trust brings loyalty.

Financial Institutions Prefer ESG-Aligned Borrowers

Banks and investment funds are slowly introducing ESG compliance in Vietnam checks before approving loans or deals. That means companies without proper ESG practices may face higher interest rates or be excluded altogether.

Major Supply Chains Are Getting Stricter

If you supply to a foreign brand, you may be part of an ESG audit soon, if not already. Large buyers are now asking Vietnamese suppliers to provide documents, reports, and even allow site visits to ensure ESG compliance in Vietnam. Companies that fail may lose contracts, while those who prepare will gain more business.

How to Build ESG Compliance in Vietnam Into Your Business

If your business is new to ESG, here is a basic roadmap:

Start With a Self-Assessment

Review your current operations. Ask yourself:

• Are we following environmental rules?
• Do we treat our employees fairly?
• Are our financial and business records transparent?

Identify areas where improvements are needed. This helps set a clear starting point.

Draft Practical ESG Policies

Start with short, clear policies:

• Environmental: How you manage waste, water, or emissions.
• Social: Employee contracts, safety rules, and community involvement.
• Governance: Company rules, ethics code, and anti-corruption policies.

Make these policies part of your training and daily routines.

Work With Local Legal Advisors

You do not need to figure out ESG compliance in Vietnam alone. Local legal consultants can help interpret relevant laws, assess risks, and draft suitable internal policies. The cost of professional advice is far lower than the cost of making a mistake in ESG matters.

Prepare for Reporting and Documentation

Begin collecting basic data:

• How much electricity and water you use
• What benefits you provide to employees
• How you manage workplace safety

This information will help if you are ever asked for an ESG report or audit.

Communicate Honestly and Regularly

If you’re making progress on ESG, tell your stakeholders. Put it in your company profile. Mention it in buyer meetings. Create a simple page on your website. But never exaggerate, greenwashing can backfire.

The Future Belongs to Businesses That Prepare Today

ESG is not about perfection. It’s about direction.

Even small improvements show that you are moving toward responsibility, sustainability, and integrity. And in the business world, those three values build something rare: trust.

Companies that embrace ESG compliance in Vietnam now will be the ones who win later, winning contracts, winning respect, and winning growth.

Whether you’re a small factory, a mid-sized exporter, or a growing startup, it’s never too early to start. ESG is not a cost. It’s an investment in your future.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/esg-compliance-in-vietnam.html