Investors in Vietnam, including those in energy, telecommunications, construction, and other sectors, could soon face mandatory police approval for their projects under a draft decree aimed at strengthening national security and maintaining the “absolute leadership” of the ruling Communist Party.
The proposal, published by the public security ministry and open for comment until September 22, would significantly expand the powers of Vietnam’s security apparatus and could raise compliance costs for businesses. Currently, the police have a largely advisory role in vetting development projects, but the new rules would allow them to vet projects on security grounds, including critical infrastructure such as nuclear power plants, telecommunications and satellite services, ports, and oilfields, News.Az reports, citing Reuters.
The draft decree also extends to less critical projects, including industrial parks and golf courses, raising concerns among companies about potential delays and higher compliance burdens. Notably, the U.S. President’s family business is involved in a planned golf resort near Hanoi, while major multinationals such as Samsung, Honda, Intel, SpaceX, and Amazon have significant industrial or satellite projects in Vietnam.
The ministry cited a “complex international situation” with heightened strategic competition as the reason for the reforms, emphasizing the need to protect national interests without sacrificing security for economic benefits. The draft also proposes supervision of foreign aid projects and evaluations of impacts on social order and safety in areas with high labor populations.
A legal consultant in Vietnam said the decree would effectively give the police the power to veto projects, a move that could affect investor confidence in the export-reliant country. While the decree still requires approval from the prime minister and may be modified, it signals a broad expansion of the security apparatus’s role in Vietnam’s economic landscape.
