HÀ NỘI — The Việt Nam Chamber of Commerce and Industry (VCCI) has called for reforms to regulations on outbound investment, stressing that outdated approval procedures are limiting Vietnamese businesses.

As enterprises become more active in global supply chains, outbound investment is increasingly seen as a strategic tool for acquiring technology, exploring foreign markets and reaching new customers.

However, current regulations under the Law on Investment and Decree No. 31/2021/NĐ-CP are significant barriers to this shift.

According to VCCI, the requirement for private investors to obtain policy approval from the National Assembly for projects worth over VNĐ20 trillion (US$775.2 million) or from Prime Minister Phạm Minh Chính for those above VNĐ800 billion is overly restrictive.

Similar approval is also required for outbound investments in banking, insurance, securities, telecommunications and media if capital exceeds VNĐ400 billion.

VCCI argues that this level of control is unnecessary, as these projects must comply with the legal framework of the host country, not Việt Nam. It is not feasible or appropriate for Vietnamese authorities to assess the format, location, scale or progress of investment projects carried out under foreign jurisdiction.

"These procedures impose an excessive burden on private businesses, creating delays and uncertainty at a time when enterprises need agility to compete abroad," a VCCI representative said.

Even for outbound investments that do not require high-level approval, Vietnamese law still mandates that all projects obtain an Outbound Investment Registration Certificate. VCCI notes this is inconsistent with domestic investment, where not all projects require registration.

"This approach places unnecessary red tape on private firms. Every capital adjustment or project change requires a new administrative process, even though the project itself is governed by foreign law," VCCI added.

The approach, according to the chamber, fails to reflect the nature of outbound investment and offers limited value in terms of risk management, while discouraging legitimate international expansion.

To address these issues, VCCI proposes abolishing the requirement for private investors to obtain policy approval or outbound investment registration for overseas projects.

Reforms needed

VCCI said that while investment by state-owned enterprises should remain subject to closer scrutiny, given the use of public funds. However, applying the same procedures to private investors, based on project size or sector, lacks justification.

The chamber emphasised that this approach runs counter to national policy, which encourages outbound investment to expand markets, promote innovation and elevate Việt Nam’s global economic presence.

"This is not just a procedural reform. It is a necessary step to unlock the potential of Vietnamese businesses, allowing them to seize global opportunities and strengthen their role in international markets," VCCI stated. — BIZHUB/VNS