Under a proposed reform, investors in Vietnam across sectors such as energy, telecommunications, and construction would require police approval for projects, according to a draft decree aimed at strengthening security and maintaining the “absolute leadership” of the ruling Communist Party. The draft, issued by the public security ministry and still open to comments until Sept 22, could raise compliance costs for businesses while significantly expanding the authority of security forces. “In socio-economic development, security must be ensured without compromising national interests for economic gains,” the proposal said. If no major changes are requested, it could be enacted by the prime minister.

Vietnam relies heavily on foreign investment and performs only limited security checks on development projects, with police mostly in an advisory role. The extent to which the new rules would apply, including whether they cover existing projects, remains unclear. The ministry cited increasing international strategic competition as a reason for the reform, although it did not specify which countries were of concern. Police in Vietnam already wield broad influence beyond security, impacting legislation and economic sectors, including businesses run by the army and major infrastructure operators.

Under the draft, the security ministry would review a wide range of projects for security concerns, including critical infrastructure such as nuclear plants, telecommunication and satellite services, ports, and oilfields. US companies like SpaceX and Amazon, planning satellite communication services in Vietnam, could be affected. Even less critical projects, such as industrial parks and golf courses, would need police approval. Vietnam aims to expand its golf industry, including a project partnered with the family business of former US President Donald Trump. Major foreign companies like Samsung, Honda, and Intel could face delays or increased costs due to the new scrutiny.

The decree would allow the security ministry to supervise and inspect foreign aid projects and evaluate their impact on security, social order, and public safety, particularly in areas with large numbers of workers. A previous decree from 2019 had given the army limited oversight of economic projects to ensure defense priorities, but the new proposal significantly broadens police authority.