Improving the legal framework for outbound investment activities in Vietnam: lessons learned from Chinese law

Abstract

In the context of global economic development, Vietnam actively encourages investors to engage in overseas investment activities to expand and develop markets. Over the years, investment regulations have been institutionalized and adjusted through various legal documents. The Law on Investment 2020 was introduced to enhance the quality and efficiency of foreign investment cooperation by 2030. At the same time, it aims to ensure consistency with the Fourth Industrial Revolution, which is shaping economic landscapes worldwide. One of the key highlights of this law is the inclusion of new provisions regarding investment incentives and support for both domestic and foreign investors, further facilitating investment activities. Overseas investment is regarded as a fundamental strategy for businesses and the national economy in the era of globalization. It provides multiple benefits, including economic expansion, political influence, and technological advancement. By investing in foreign markets, businesses can diversify risks, access new consumer bases, enhance their competitive edge, and integrate into global value chains. Furthermore, overseas investment fosters knowledge transfer, improves corporate governance, and strengthens international partnerships, ultimately contributing to sustainable economic growth. Within the scope of this article, the authors aim to identify specific challenges related to overseas investment activities, particularly concerning the authority to approve investment policies and the issuance of investment registration certificates. These issues have created specific legal and administrative barriers for investors, limiting the efficiency of investment processes. The article will propose several policy recommendations and legal improvements based on these challenges to facilitate and optimise overseas investment activities. In particular, the analysis will draw comparisons with China’s legal framework, providing insights into best practices that could be adapted to Vietnam’s regulatory environment.