Vietnamese Government leaders on August 10 discussed draft decrees guiding the implementation of key laws to create favourable conditions for foreign investors to operate in the country. PM Nguyen Tan Dung said the decrees need thorough consideration before being issued to avoid overlaps.

The Enterprise Law: creating the best conditions for foreign investors

Minister of Planning and Investment presented four draft decrees relating to the Enterprise Law issued in November 2005. They are the decree on the transformation of State-owned enterprises into limited companies operating under the Enterprise Law; the decree on business registration, the decree on the State management over business licensing system, and the decree on foreign-invested enterprises and business cooperation contracts re-registered under the Enterprise Law and Investment Law.

These decrees have been revised after consultations with the Prime Minister and other Cabinet members.

According to Mr Phuc, foreign investors praised the decree on business registration for its transparent and simple procedures. However, some investors said business registration agencies should only be established in Hanoi and HCM City, while some others suggested that such agencies should be established at the provincial level for convenient management.

The Prime Minister said that decentralisation should be applied to create favourable conditions for enterprises in registration activities.

To further simplify the business licensing system, the revised decree says that foreign investors need only register with the provincial administration if their investment projects are valued at less than VND300 billion. For projects of larger value, the investors should have the license granted by authorised agencies.

According to Minister Phuc, the new move will facilitate foreign investors’ operations in Vietnam.

The Investment Law: decentralisation and responsibility
After the decree guiding the implementation of the Investment Law was presented, Prime Minister Dung asked the drafting board to continue to make clear investment decentralisation relating to investment forms, investment areas, and investment capital. He suggested that investment decentralisation be applied at the ministerial and provincial levels to ensure transparency and openness.

The Bidding Law: a guiding decree is a must
Minister of Construction Do Hong Quan said that the draft decree guiding the implementation of the Bidding Law should clarify the capability of contractors, construction pace, and costs. According to the Minister, bidding and construction should not be separated while formulating the decree because construction contains many sensitive issues.

Mr Quan said Government Decree 16 issued last year has met the requirements of simplification of procedures and decentralisation in investment and capital construction. However, weaknesses have been seen in implementing the document, and it is imperative to revise the document to ensure its consistency in the whole legal system.