Investors to enjoy further preferences
14 August 2006
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.
Source: www.vnep.org.vn
