Investment of setting up economic organization in Vietnam is one of commonly investment form apart from the contributing capital, acquiring share of the foreign investors when doing business and investment operation in Vietnam.

The Investment Registration Certificate is one of condition precedent to the foreign investor start to business operation legally in Vietnam when investing under the form of setting up economic organization under the Law on Investment 2014 being effective.

However, the new Law on Investment 2020 taking effect from January 01^st, 2020 has one point remarkably, if the foreign investor do business in Vietnam under form of setting up economic organization having the investment projects in Vietnam as in the form of establishing small and medium-sized start-up businesses and innovative start-up investment funds in accordance with the Law on Supporting Small and Medium-sized enterprises under Article 22.1(c) Law on Investment 2020 without obtaining the Investment Registration Certificate.

The remarkable point of Law on Investment 2020 will help such investor reducing registration costs, helping investors shorten the time to carry out administrative procedures, focusing on more business activities. Although there are remarkable point above, there still lies issues that needed further solution for such a regulation could be fully effective, such as (i) the criteria to determine what is small and medium-sized start-up businesses and innovative start-up investment funds ; (ii) which agency has the right to identify, certify and manage foreign investor to do business of establishing small and medium-sized start-up businesses and innovative start-up investment funds in order that it’s not required to obtain the Investment Registration Certificate for such foreign investor.

Therefore, according to practical experience, in order to enjoy this exemption and reduction of unprecedented investment procedures, the foreign investor may have to wait for more documents to guide the implementation and application of the Law on Investment 2020 from Vietnamese Government and related ministries.