Equality Does Not Mean Rating the Same

Equality Does Not Mean Rating the Same

Building a synchronous Enterprise Law and General Investment Law is seen a crucial solution to improve the business law system of Vietnam. The matter is what preparation is needed during the compilation of these two laws so that no problems will emerge after their promulgation such as things that have gone on in the current business law system. Under the request of the Prime Minister’s Research Board, the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) has looked into legal documents on the establishment, organization and operation of enterprises. A member of the board, Ms. Pham Chi Lan, asserted the meaningfulness of the check since it not only points out problems but also helps find out distinguished legal characteristics needed to maintain for different types of enterprises. This helps avoiding the general rating on the content of these two laws.  

The VCCI’s Legal Department has re-checked four “hottest” fields with over 800 relating legal documents, including regulations on the establishment and organization of enterprises, and those on tax, finance and land, in preparation for the issuance of these two new laws which are expected to remove unreasonable differences among enterprises of all types as well as respect the rights of business freedom. This general report will practically and scientifically support the synchronous building of these two laws, stressed head of the department Tran Huu Huynh at a recent meeting held by VCCI in coordination with the Prime Minister’s Research Board and the UNDP.

In connection with this, VCCI has also collected resolutions which all head to the removal of unnecessary differences in the content of these two laws. General Secretary of the Vietnam Association of Financial Investors (VAFI) Nguyen Hoang Hai suggested levying capital usage on State-run enterprises to ensure the equality and limit tax losses for the State Budget. Regarding the rate of capital contribution, many proposed the change of maximum level regulated for foreign investors who go to the bourse as well as the rate of chattered capital they are allowed to pump into FDI enterprises. MA of Law Tran Quang Huy suggested lifting the regulation on land-contribution since this is not advantageous for Vietnamese enterprises.

However, knowing which differences should be removed or maintained is a hard task. There isn’t as yet any consistent viewpoint on the criteria for appropriate distinction. From a legal aspect, State-run enterprises cannot be put in the same rank with SMEs while FDIs should not be seen as 100-percent local-invested enterprises. All are agreed that there should soon be a proper and synchronous criterion to ensure a more open and transparent business environment for enterprises.

• Huyen Nhi