(VOVworld)- The 13th National Assembly’s adoption of the revised Enterprise and Investment Laws at its 8th session has received positive feedback from the business community. The revised laws are expected to improve Vietnam’s business and investment environment.
Enterprises praised the adoption of the revised Laws on Enterprise and Investment under which the number of business fields of an enterprise is not limited and enterprises can make their own decisions on the types and content of their seals. The two laws have common stipulations on the investment and business sectors, common principles for business establishment and administration and certain exceptions for the banking, insurance and securities sectors.
Ensuring freedom of business
The revised Laws on Enterprise and Investment will pave the way for enterprises to do business in sectors that are not forbidden by law, create a level playing field for all economic sectors, and reduce administrative procedures and business costs for enterprises. This is consistent with international practices. Minister of Planning and Investment Bui Quang Vinh said:“The revisions of the laws address legal weaknesses of the past ten years. The fundamental change in the Investment Law is the method of approach. Previously, the law only allowed enterprises to do business or invest in certain areas. Revising the law, we changed our method of approach by stipulating prohibitions in the law. People are allowed to do business or invest in all areas that the law doesn’t forbid. Second, Vietnamese enterprises don’t need investment certificates. They are free to do business in the areas that the law permits, but have to meet certain conditions to do business in conditional fields. State management agencies will monitor enterprises’ activities and demand revision or suspension of their operation if necessary”.
Under the revised laws, enterprises are allowed to change their business fields without a permit. This change will help improve the business environment in Vietnam, and increase enterprises’ self-direction and flexibility. In regard to administrative procedures in investment, the number of licenses is reduced and replaced by sets of standards and conditions. These regulations increase enterprises’ responsibility for their own operation. Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said:“The revised laws with their effective solutions create a favorable environment, reduce administrative procedures, and ensure freedom of business and uniformity of the legal system in terms of business. These revisions are of breakthrough importance”.
Challenges for management agencies
The expansion of business and investment sectors under the revised law will create new competition between businesses and new challenges for the market. The increase in the number of investment sectors will challenge the management agencies that are in charge of verifying enterprises’ operations. Le Dac Lam is a National Assembly deputy from Binh Thuan province: “It’s necessary to legally define the authority of state management agencies to help them to manage enterprises and verify their operations effectively”.
The revised Laws on Enterprise and Investment will take effect on July 1, 2015.