After discussing the issue of supplementing and amending the Common Investment Law and the Unified Enterprise Law for many days, which aim to created favourable conditions for enterprises and investors, the 11th National Assembly has approved the two laws.
Under the guidelines of the Prime Minister to create a more favourable business and investment environment, from March 2005, ministries and relevant agencies began to gather inputs and comments to the two laws from local and foreign enterprises and business associations. The laws are expected to help improve the legal environment for business activities in Vietnam.
Before the final draft laws were submitted to the National Assembly for approval, 16 seminars and symposiums had been organised to gather inputs and comments to the laws. However, before the final drafts were submitted, the Prime Minister Research Commission and enterprises representing organisations, in particular the Vietnam Chamber of Commerce and Industry (VCCI) were aware of shortcomings of the two laws, which would constrain activities of enterprises and investors. Therefore, in final days of October, 2005, many seminars were held for this purpose.
VCCI, who represent local enterprises, and Eurocham and Amcham, who represent foreign-invested enterprises, as well as consultancy agencies and experts, expressed their disagreements on many contents of the two laws. After National Assembly deputies held discussions and gave their ideas, the drafting and evaluation boards amended the two laws twice. At the final session on November 29, 2005, the National Assembly approved the two laws.
It is easy to understand when looking at feedback information about the two laws, most ideas supported the Unified Enterprise Law while the Common Investment Law saw many disagreements. For the Common Investment Law to be adopted by the National Assembly with 77.3 per cent of deputies voting for, the drafting and evaluation boards had to work hard, collecting inputs and comments before amending many articles in the final draft in an effort to satisfy investors, in particular about issues enterprises had disagreed on in previous seminars and symposiums.
Business and investment procedures were amended to meet the aspiration of enterprises and investors. Accordingly, for domestic enterprises, specific business registration certificates and specific investment certificates are accepted for projects, valued at over VND 300 billion. Those projects, which are capitalised less than VND 15 billion, do not need registration certificates. Those projects, capitalised between VND 15 billion and 300 billion, will be registered according to existing forms. Projects, which are capitalised at least VND 300 billion or have conditions, will have to have investment certificates. However, according to Dang Van Thanh, deputy head of the National Assembly Economic and Budget Committee, this is a transitional step. Local investors will then be stipulated to complete procedures in the same way as foreign investors are.
In case of investment in and establishment of enterprises, one or two certificates will be granted on the demand of investors. If investors have business certificates and want to invest in expanding their production and business activities, their investment may be written into their business certificates or they will get investment certificates.
For foreign investors, the only existing certificates will be used. Those projects, capitalised between VND 15 billion and 300 billion, will have to be registered only. Those projects, which meet requirements to enjoy priorities, will have their priorities written into their investment certificates.
Regarding project evaluation, Thanh said that responsibilities of authorised agencies had been clarified. For example, environmental agencies will be responsible for evaluating environmental issues while police agencies, for identifying the legal personality of investors. State agencies in charge of business registration cannot do the work for investors. Thanh went on to say that in the coming time, the State may assign an agency to act as the focal point to do the work. However, this cannot be done at the moment.
The two laws will take effect on July 1, 2006.
Nguyen Thoa
Vietnamese
