Decree No. 239/2025/ND-CP was issued by the Vietnamese Government to update investment licensing procedures in line with the implementation of the two-tier local administration system. The Decree amends and supplements Decree No. 31/2021/ND-CP, with a focus on simplifying procedures for obtaining an Investment Registration Certificate (IRC) and improving the clarity of investment incentive policies. These changes are intended to reduce administrative burdens and make the investment framework more practical for both domestic and foreign investors. Decree 239 will take effect on September 3, 2025.
Key highlights of Decree 239 include:
- Clearer rules on investment incentive areas at the commune level, ensuring that incentives remain applicable when administrative boundaries are reorganized; provincial authorities are responsible for announcing eligible areas and reporting to the Ministry of Finance.
- Removal of the fixed 10-year age limit for machinery and equipment, with eligibility instead assessed based on technical standards, operational efficiency, safety, environmental compliance, and resource consumption.
- Revised regulations on infrastructure investment in industrial parks, export-processing zones, high-tech zones, and economic zones, granting investors greater flexibility to develop, lease, and manage infrastructure and related services.
- Simplified investment application dossiers, requiring only one hard-copy set together with a legally valid electronically signed version, thereby promoting the use of digital submissions.
- Shorter processing time for IRC issuance, reduced from 15 days to 10 days from receipt of a complete and valid application.
- Expansion of the list of areas eligible for investment incentives, extending preferential treatment to economic zones, high-tech and IT zones, as well as industrial parks and export-processing zones, in line with national development priorities.
Legal takeaway:
Decree 239 represents a meaningful step forward in Vietnam’s investment law reform by streamlining licensing procedures and providing greater certainty around investment incentives. These changes are expected to enhance the overall investment climate, particularly for foreign investors. Businesses should carefully review their current and planned projects to ensure compliance and to take full advantage of the updated incentive framework.
Asia Legal will continue to monitor regulatory developments and provide timely updates to our clients on the latest changes affecting investment and business operations in Vietnam.
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