As a legal framework with important contributions to the cause of national economic development, the Law on Commerce of 2005 has exposed some shortcomings which need to be modified, according to the Ministry of Industry and Trade.
According to the Ministry of Industry and Trade, compared with Law on Commerce of 1997, adjustments and additions to the Law 2005 have brought enormous positive impacts on commercial activities.
Not only that, the Law on Commerce of 2005 became one of important legal foundations for Vietnam to join international economies. Trade disputes were settled by tribunals with a high success rate (approximately 90 per cent).
Nevertheless, this law also posed problems to businesses.
Specifically, State management over importing is fragmented and confused among ministries. In practice, importation is increased steadily and constantly. Import growth is higher than export growth. Moreover import markets tend to focus on markets without outstanding technological levels (in investment and production) or with consumer goods that compete directly with domestically produced ones. Exporting activity has faced a lot of obstacles and barriers from trade partners.
Smuggling and trade fraud are increasingly complicated and unpredictable. In addition to some objective reasons such as geographical location, long border line and thin border forces, the trade law system needs to be improved to eliminate loopholes and facilitate competent bodies to enforce the law.
Besides, trade operation methods are taking shape and developing but legal foundations for these are unclear or unspecific.
In addition, concepts and definitions of the Law on Commerce must be consistent with international practices. Specifically, it is necessary to clarify the governing scope of individuals in trading activity.
At recent review workshops on the enforcement of the Law on Commerce held in Hanoi and HCM City by the Ministry of Industry and Trade in cooperation with the US Agency for International Development (USAID), Lawyer Ngo Viet Hoa, a member of USAID GIG Project, said, many provisions of the Law on Commerce are unnecessarily overlapped in the legal system, particularly with the Civil Code.
A representative from the Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI) pointed out unsuitable points in the regulation on the list of prohibited goods and services, restricted and conditional business in the Law on Commerce with the list of conditional businesses issued in 2014. According to the VCCI Legal Department, this requires a major review to drop and update lists in line with current laws.
The Ministry of Industry and Trade will propose the Government and the Prime Minister consider and decide on the research and process of the Law on Commerce of 2017, expected to be passed in 2018.
Amended contents relate to State trade support policies for remote, far-lying and island areas; trade infrastructure construction support policies; domestic trade and distribution methods; and rules of origin.
Thu Ha
Vietnamese
