3:26:42 PM | 7/8/2005
The Ministry of Planning & Investment has recently submitted the Draft Common Enterprise Law and the Draft Common Investment Law to the Government for ratification.
The Draft Common Enterprise Law, which consists of 11 chapters and 165 articles, will be applicable for all enterprises of all economic sectors, including State-owned, foreign-invested and local private enterprises.
The law also simplifies business registration procedures and reduces the entrance barriers for foreign-invested enterprises. Foreign enterprises only need to complete their business registration procedures, instead of obtaining an investment license, to operate in Vietnam.
The new law will also remove the regulation that limits the percentage of shares that a foreign investor can hold in a domestic firm. The current percentage is 30 per cent. Foreign investors can choose what type of enterprises their firms will be and can expand their business scope at will.
The Draft Common Investment Law consists of 12 chapters and 121 articles. The new law is an essential legal foundation for creating an equal investment climate for both domestic and foreign investors.
These two draft laws are expected to take effect from 2006.
Vietnamese
