Common Enterprise Law Expected to Create New Investment Wave in Vietnam

Common Enterprise Law Expected to Create New Investment Wave in Vietnam

Both domestic and foreign enterprises are eager to see the promulgation of the Common Enterprise Law, which is expected to create a fair playing field for them, according to a conference on drafting the Common Enterprise Law held in Hanoi late last week.

"The new law should ensure the unanimity between itself and Vietnam's current legal system. Its prime purpose is to facilitate the establishment and development of enterprises," said a representative of France's GLN Legal Consultancy Company.

Regarding the limits on the operations of foreign enterprises in Vietnam in the Draft Common Enterprise Law, Vietnamese policymakers should clarify the objects and the effects of the limits, said Peter Nelson from My Hoa Anh Consulting Co.

"All the limits, if necessary, must be made public to foreign investors so that they know what to do next," said Peter.

Many investors said Vietnam's legal system is still incomplete and many articles in the Draft Common Enterprise Law are not suitable with international business practice.

A representative of the European Chamber of Commerce (Eurocham) said he doubts the necessity of the article requiring that the board chairman and the general director of an enterprise be located in Vietnam.

In spite of many inappropriate articles the draft law may have, many foreign investors are happy that under the law, the proportion of shares that they can obtain in an enterprise will not be limited. The current limit is 30 per cent.

"This move is expected to create a new investment wave in Vietnam," said Nguyen Dinh Cung, secretary of the Common Enterprise Law Drafting Committee.
Investment