May 03, 2014
The Ministry of Planning and Investment has had to engage in a “tough fight” with other ministries and sectors in an effort to create a better business environment.
In his presentation of the draft of the revised Investment Law to the National Assembly’s (NA) Standing Committee last week, Minister of Planning and Investment Bui Quang Vinh said tere are 330 industries and trades in the category of conditional investment with complex procedural requirements. To reduce these conditional investment areas, the ministry had to face an “fierce battle” with relevant ministries as these areas are associated with their appraisal, licensing and inspection powers. “To create a fresh investment wave and support economic recovery, we have had to face a tough battle with other ministries and sectors,” Vinh admitted in the local media.
To reduce investment red tape and improve State management of investment activities, the ministry proposed in the draft abolishing the requirement for investment certificates for investment projects, except for projects in conditional investment areas. Investors will only be required to register for business establishment and investment. “Except for some restrictions in capital contribution and business scope as regulated under current regulations and international agreements, foreign investors will receive equal treatment as local investors,” Vinh said, adding that the draft also has complete regulations for sectors and areas eligible for investment incentives.
The draft revisions to the Investment Law will be discussed at the upcoming sitting of the NA this month. With this revised Investment Law, the ministry hopes to create a breakthrough in the business environment. “We will continue screening investment barriers and present to the National Assembly a full list of unnecessary barriers that must be removed,” Vinh said.
Earlier, the ministry also presented the revisions to the Enterprise Law to the standing committee before they are discussed at the NA session. One of two major issues in the revisions is the freedom in doing business, which means one has the right to do business in all industries that are prohibited by the law. The other is to issue specific regulations governing enterprises wholly owned by the State.
Members of the NA Standing Committee said the Enterprise Law should be revised in a clear and transparent manner, with a focus on ensuring freedom in doing business and clarifying conditional business areas.
(The Saigon Times)