Investment Law suits WTO rules: MPI
8 Nov 2006
VietNamNet Bridge – The Common Investment Law was compiled in the days when Vietnam carried intensive negotiations for joining the WTO. Therefore, the law proves to mesh with the current situation in Vietnam and come in accordance with the WTO’s rules.
Pham Manh Dung, Director of Legal Department under the Ministry of Planning and Investment (MPI) said that the Government wants to be one of the few WTO’s members which have completed legal framework compatible to WTO’s rules right in the first days after it gets WTO membership.
CIL and Unified Enterprise Law (UEL) have been praised as a breakthrough in reforming Vietnam’s business climate since they were brought into life.
Mr Dung said that during the law’s compilation, the drafts all were transferred to the WTO’s Secretariat for consideration. This proved to be a very complicated process, but it was obligatory work, not only because of the negotiations’ requirements, but also of the demand for improving Vietnam’s investment environment.
“CIL must not be outdated, though the law was enacted before the negotiations were wrapped up, as we have considered all the commitments and regulations set by the WTO and Vietnam’s partners during the compilation process,” said Mr Dung.
“No need to adjust the law after Vietnam officially joins the WTO, as the law reflects the spirit of WTO already,” he added.
MPI Minister Vo Hong Phuc believes that the official joining of the WTO will have a positive impact on the implementation of the law. The implementation of CIL and UEL, and of bilateral and multilateral commitments will mean a comprehensive reform of the national economy. This will require Vietnam to change the ways of thinking, and upgrade state management capability.
Mr Dung from MPI stressed that freedom in business and investment, which WTO always targets, has been clearly shown in CIL. The law is Vietnam’s first legal document, in which this spirit is most concrete.
With the new investment law, investors have the right to make investments in all the fields that are not prohibited by the laws. Investors can also decide for themselves on the issues, regarding investment scale and capital. Investors are all equal in accessing land, bank credit, natural resources, and public facilities.
With CIL, investors’ interests can be protected by the state: their capital and assets must not be nationalised or seized by administrative orders. Investors have the right to access international courts and arbitrators in settling disputes.
Source: TBKTVN
