Law on Investment revised for global integration

(VOVWORLD) - Revisions to the Law on Investment are being discussed at the current National Assembly meeting. The revised law will specify Vietnam’s commitments to global integration and improve its economic competitiveness.
Law on Investment revised for global integration - ảnh 1The 9th session of the 14th National Assembly discusses the revised Law on Investment.

Amendments to the Law on Investment will improve the quality and efficiency of domestic and foreign investment, fine tune regulations on conditional business lines and trades, eliminate unnecessary trades, and ensure freedom of doing business in industries and trades not prohibited by law.

Ensuring investors’ rights and duties

In the spirit of guaranteeing openness and transparency, the revised Law on Investment defines what areas of business are not prohibited by law. It removes 10 conditional trades and redefines other trades in line with state governance and other laws.

National Assembly deputy Duong Minh Tuan of Ba Ria-Vung Tau province, said: “Article 6 on prohibited trades marks a step forward as it specifies that people have the right to do business in areas not prohibited by law.”

The revised Law on Investment does a better job of ensuring freedom and equality for businesses and simplifies administrative procedures for investment projects. It also clarifies certain business and investment conditions and incentives to help businesses take advantage of incentive policies designed to boost the economy.

Deputy Mai Thi Anh Tuyet of An Giang province said: “The revised law says the implementation of incentive policies must ensure macro-stability. Stability and transparency are important to avoid conflicting regulations. The revised law regulates resource allocation, investment attraction, and public investment for localities. Businesses are encouraged to invest in new projects, but under strict conditions.”

Ensuring integration commitments

Investment incentives in the revised Law on Investment are based on the Politburo’s Resolution 50 on attracting foreign investment in the new period. The revised law expands the list of conditional business lines for foreign investors. For other business lines, foreign investors are allowed the same market access as domestic investors. The expanded list of business lines reflects Vietnam’s market-opening commitments under new-generation Free Trade Agreements and international conventions.

The revised Law on Investment does not require foreign investors to set up an investment project and acquire an investment license before establishing start-ups or venture funds. The amendments also adjust regulations on capital contributions and purchasing shares.

Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management, said: “The revised Law shows that the government is determined to remove all barriers hampering business. I hope the revised Law will stimulate economic development and expand people’s freedom to do business.”

If approved at the ongoing National Assembly session, revision to the 2015 Law on Investment will help Vietnam meet its global integration commitments and attract more investment.