August 23, 2014
The National Assembly (NA) Standing Committee has asked the Government to complete a list of prohibited investment and business sectors soon so that the legislative body can consider and approve relevant amendments to the Investment Law and the Enterprise Law at its eighth session later this year.
At a session to discuss draft amendments to the two laws last week, most NA deputies were still concerned about regulations on banned investment and business sectors and those related to conditional investment and business fields. The deputies said the lists of conditional and banned business and investment areas should be clarified to ensure the legitimate rights and interests of enterprises and remove many hurdles they faced in their operations. They also warned that if these areas are not specified, the draft amended investment and enterprise laws will not be passed at the forth-coming NA session.
Nguyen Van Giau, chairman of the NA Economic Committee, asked relevant agencies to review all the regulations on banned and conditional business areas to eliminate illogical rules that may obstruct legitimate investment and business activities of enterprises and citizens.
NA vice chairman Uong Chu Luu said amendments to the laws should be in line with the Constitution that states it is legal to operate in any business sector not banned by law.
However, Minister of Planning and Investment Bui Quang Vinh complained that most ministries have been reluctant to send the list of banned or conditional business areas under their management to his ministry for inclusion into the draft amendments to the two laws. Until now, only three ministries – Justice, Public Security, and National Defense – have sent in their lists, while others have remained unresponsive, as they are reluctant to relinquish their privileges and benefits in retaining such bans and conditions.
Speaking at the session, Nguyen Dinh Cung head of the Central Institute of Economic Management, said private enterprises would feel safer to make long-term investments and enjoy increased protection of amendments to the Enterprise Law are passed by the NA. Cung noted that there are up to 400 documents on conditional business areas in Vietnam, causing many obstacles to enterprises.
If the amended law is passed, doing business in areas that are not specified by the law is no longer a crime, so businesspeople may feel safer to make long-term investments.
(The Saigon Times)