Investors in Vietnam to face strict police screening under proposed reform

A proposed law would empower the public security ministry to screen investors in key sectors

 

Alvin Ybañez

People Matters Global | 18 September 2025

Investors seeking to fund key development projects in Vietnam may need to obtain approval from the Ministry of Public Security under a proposed law meant to boost national security and reinforce the 'absolute leadership' of the ruling Communist Party.

The proposal, published on the public security ministry's website for public comment until September 22, states that 'security must be ensured' and that national interests should not be sacrificed for economic gain. A separate document from the ministry cited the need to address an increasingly complex international situation dominated by the influence of "strong countries" as a reason for the reforms.

If no major changes are made, the prime minister can sign the proposal into law. 

The move marks a significant departure from the current system. Heavily reliant on exports and foreign investment, Vietnam conducts limited security checks on development projects with the police providing a consulting role. It is unclear how the new law would be enforced, or whether it would apply to existing projects.

Under the new provisions, the Ministry of Public Security would gain the power to vet a wide range of projects on security grounds. This includes key infrastructure projects like nuclear power plants, telecommunications, and satellite services, as well as less critical ventures such as industrial parks and golf courses.

The ministry would also establish yet-to-be-defined security conditions for projects to move forward, particularly those with foreign investment. The document says a new mechanism would be created to supervise and inspect foreign aid projects and assess the "impacts on security, social order and safety" of foreign-invested projects in key areas.

Aside from ensuring the nation's security, Vietnam's police force wields significant influence over legislation and the economy. The current Communist Party general secretary and the country's most powerful man, To Lam, was formerly a police general and headed the security ministry before taking the top job.

 

 

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