Investors in Vietnam may soon need police nod for projects

Planned reform aimed at boosting security, ensuring ruling party’s ‘absolute leadership’

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Investors in energy, telecommunications, construction and other sectors in Vietnam will need police approval for projects, under a major reform meant to boost security and ensure the “absolute leadership” of the ruling Communist Party, a draft decree says.

The proposed text from the Public Security Ministry, which is still subject to changes, could increase compliance costs for business in the Southeast Asian nation while significantly expanding the powers of the security apparatus.

“In socioeconomic development, security must be ensured, without sacrificing national interests, for economic benefits,” said the proposal published on the ministry’s website, which other ministries can comment on until Sept 22.

It could then be signed into law by the Prime Minister, provided no major changes are requested.

Export-reliant Vietnam is highly dependent on foreign investors and currently conducts limited security checks on most development projects, giving the police largely a consulting role. It is unclear how extensively the new rules would be applied, if approved, and if they would concern only future projects.