Taking the sharpest tongue is the Investment Law, which according to experts has imposed red-take burdens on enterprises. The roundtable was jointly organized by the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Planning and Investment, and the Vietnam Business Forum.

Overlapping

Speakers at the meeting said the Investment Law overlaps several other laws such as the Enterprise Law, the Land Law, and the Taxation Law. As such, the Investment Law fails to improve the business environment, but even worse, it hinders business development.

One point of discussion is provisions on preferential treatment specified in the Investment Law. Speakers said incentives on taxation have been provided for in the Taxation Law, while incentives on land rent have been available in the Land Law.

Despite such facts, the Investment Law still covers these incentives, and as such, the law not only overlaps other legislations, but also causes problems for investors regarding administrative procedures.

Dau Anh Tuan, an official with VCCI’s legislation department, said regulations on business registration and project assessment in the Investment Law should be abolished as such provisions are already mentioned in other laws.

Tuan said definitions on direct and indirect investment are also vague and confusing, making investment procedures more complicated for investors.

Nguyen Viet Khoa from the HCMC Economics University said the Investment Law is a major hindrance to business activity.

Khoa suggested that regulations on investment procedures in the Investment Law should be made identical to those in the Enterprise Law to create a better environment for business registration.

Khoa even went greater lengths to call for abolishing the Investment Law altogether as part of the nation’s administrative reform so as to create a more liberal investment environment for all enterprises.

Meanwhile, Lawyer Tran Thanh Tung from the law firm Phuoc & Partners proposed transforming the Investment Law into the Investment Promotion Law, meaning the law will only center on such issues as investment policies, investment protection, and conditional investment encouragement.

Enterprise Law still needs amendment

The Enterprise Law, meanwhile, heaps praise from experts for improving the country’s legislation process in international integration. The law was said to have created a better legal framework that protects the business rights of enterprises and promote the entrepreneurship among the people.

However, after years of implementation, the law has also exposed shortcomings that need to be remedied.

Experts at the roundtable called for improvements of the law, including more liberal business rights for organizations and individuals, shorter time for business registration, and reorganization of State agencies overseeing enterprises.

Delegates at the event also suggested changes to regulations in the Enterprise Law so as to make it easier for enterprises to register business, as well as to make rules clearer on mergers and acquisitions.

Source: Saigontimes