The amendment and supplement of the Enterprise Law and Investment Law has been implemented since January 7, 2015; however, "there is no significant progress and consistent development which leads to a conflict between the laws, causing problems for businesses and investors," said the Working Group for the implementation of the Investment Law and Enterprise Law at its 2nd meeting in Hanoi.
The biggest problem, as identified by the working group's representative, is that the status of legal documents issued before the Investment Law came to effect has not been adjusted to ensure complete consistency and to be synchronous with the reform of the Investment Law.
Does a "private law" system exist?
In fact, it appeared that competent authorities delay the issuance of investment certificates for foreign investors in the field of wholesale and retail. Difficulties stem from the remaining two parallel documents stipulating the issues. According to Decree 23/2007 / ND-CP detailing the Commercial Law regarding goods trading activities and activities directly related to the purchase and sale of goods, required registration investment agencies to consult Ministry of Industry and Trade (MOIT) and grant investment certificate for foreign investors if it is approved by the MOIT in documents. Meanwhile, the spirit of the reform of the Investment Law and Decree 118/2015 / ND-CP detailing the implementation of the Investment Law negates the records requirements relevant to this issue in Decree 23/2007 / ND-CP. Faced with this contradiction, only some local licensing authorities comply with the spirit of the later documents, the remaining majority of licensing authorities are reluctant, causing delay and pressing concern among investors. There is even an idea that in this area a "private law" system exists.
Japanese companies still concerned about risks in the investment environment
In the report of surveys on production and trading activities of Japanese enterprises in Vietnam in 2015, implemented by the Japan External Trade Organisation (JETRO), showed that the biggest concern of most Japanese companies and investors is still risks in the business and investment environment, especially elements directly related to investment activities and production of their businesses, such as administrative procedures and tax policy, the legal system, availability of materials and components in the country.
According to the report, 63 percent of companies said that the legal system is not complete and not transparent (up 3 percent compared to the 2014 survey report), 61.1 percent rated the administrative procedure still complicated, making it difficult for businesses (up 8.4 percent), 53.9 percent said that regime and tariff procedures were still troublesome (up 2.3 percent) and 48.3 percent said that infrastructure such as electricity, transport and communications of Vietnam have yet to be complete (up to 6.1 percent). These assessments made Vietnam fall to No. 3 on the degree of risk in 15 countries. According to Mr Atsusuke Kawada, Chief Representative of JETRO in Hanoi, the biggest problem of Vietnam today still faces differing interpretation of laws between government departments and officers, causing many difficulties for businesses.
To resolve this problem, Mr Nguyen Dinh Cung, President of the Central Institute for Economic Management (CIEM), Chief Secretary of the Working Group to implement the Enterprise Law and the Investment Law, said that he would report and ask for the direction of the Prime Minister, but his point is "to comply with the law".
Nguyen Thanh
Vietnamese
