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VCCI News

Last updated: Tuesday, November 21, 2017

 

Oscar, Golden Raspberry of Legal Regulations Awarded

Posted: Tuesday, March 14, 2017

Within 14 months from the receipt of nominations for the best and worst legislation in 2016, the result announcement by the Vietnam Chamber of Commerce and Industry (VCCI) on February 28, there were 9,297 nominations recommended by 1,739 individuals and organisations from State agencies, associations and the business community. After selection, assessment and audit, the panel of experts finalised 237 legal regulations, including 114 good ones and 123 bad ones.

This poll faced hardships from the outset. VCCI President Vu Tien Loc used to compare final outcomes as Oscar Awards and Golden Raspberry Awards for legal regulations of Vietnam in the past year. The report aimed to promote and honour the best regulations while pointing to bad and inappropriate ones in order to make suggestions to relevant ministries and agencies for potential changes.

At a conference on the report on legal regulations selection in 2016 held by VCCI recently, 30 good laws and 30 good regulations were nominated with the consensus of top-notch, prestigious experts.

Nominations were assessed with 10 sets of criteria which require a law must have, such as necessity, rationality, consistency, feasibility, transparency, compliance cost and business freedom.

Accordingly, the best was Penal Code 2015 which abolished the illegal business crime stated in Article 159 of Penal Code 2005, the list of sectors prohibited from business investment or conditional investment; investment and business conditions in conditional sectors provided in local laws and international treaties. Ministries, ministerial agencies, People's Councils, People's Committees at all levels, organisations and individuals are not allowed to promulgate regulations on investment conditions.

In addition, other good points included the deregulation of 15 per cent ceiling placed on advertising, marketing, promotion and support relating to business operations of enterprises; the eradication of the provision that “Organisations and individuals dealing in real estate must sell houses or buildings through real estate trading floors” in the Law on Real Estate Business; and reduced frequency of tax returns to quarterly basis from monthly basis for businesses with annual revenue from VND20 billion to VND50 billion in Article 4.3 of Decree 91/2014/ND-CP; the abolition of regulations on mandatory granting of investment certificates to domestic investors in the Law on Investment 2005; and real estate business conditions with legal capital proved by charter capital.

Mr Dau Anh Tuan, Director of VCCI Legal Department, said, among 237 nominees, 79 were laws (33 per cent); 75 were decrees (32 per cent), 69 were circulars (29 per cent), and the rest was other documents. However, when classified into good and bad categories, there was a clear disparity between them. Accordingly, up to 34 per cent of good nominations were at the law level while less than 24 per cent of good nominations were regulations. By contrast, at the decree and circular levels, bad rate was higher, up to 70 per cent.

Particularly, out of 30 bad legal regulations, five had been altered by concerned ministries while 13 were set to be amended within the framework of another law-building programme. In the bad category, the Ministry of Information and Communications took the lead with six nominations, followed by the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment.

Mr Tuan said investors assessed whether Vietnam's business environment is favourable or unfavourable, good or bad depended not only on infrastructure, labour cost and labour quality factors but also on legal regulations. Therefore, this ranking of legal regulations was aimed to assess and report to the Government on information from practical enforcement of legal regulations.

Dr Vu Tien Loc said VCCI collected and reflected opinions and wishes from businesspeople to advise the Party and the Government on socioeconomic policies, a task it was assigned under Resolution 19/NQ-CP on improving business environment and increasing national competitiveness and under Resolution 35/NQ-CP on business development support to 2020.

He added that the movement reflected the truthfulness and support of enterprises to State agencies in promulgating laws in support of business, promote economic development, and change laws detrimental to business operations.

Mr Nguyen Dinh Cung, Chairman of the Central Institute for Economic Management (CIEM), said that the report will be a useful document for State agencies and policymakers to draft laws for doing business easier and promoting creativity and healthy competition.

Anh Mai








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