Gov't mulls law to foster business rule revisions

Dang Huy Dong

The MPI is drafting a law regulating future revisions of business and investment laws. What are the highlights of the draft?

In the draft, we review Appendix 4 of the Investment Law, which lists business areas where enterprises must satisfy specific conditions. There are 267 such areas. We plan to cut this number to around 50 to create a more advantegeous investment environment for enterprises.

We will revise around 12 laws related to business and investment conditions: Investment Law and Enterprises Law are the main two among them. We will also change the way of managing businesses to supervise enterprises in post-licensing phases, instead of controlling their establishment with conditions set in advance.

The draft law will provide sufficient directions and measures to improve the business climate, enhance the competitiveness of enterprises and support their development in accordance with Government Resolutions No 19/NQ-CP and No 35/N-CP, which pertain to assisting and developing enterprises until 2020.

Is there a precedent of using a law to revise other laws in Viet Nam?

Using a law to modify different laws is not something new in Viet Nam. We already have experience in doing this.

Law No 38 was issued in 2009 to supplement laws involved in basic construction and investment. Later, there were Law No 71/2014/QH13 - revising taxation laws - and Law No 106/2016/QH13 - supplementing value-added, special consumption and taxation management laws.

As far as we know, a law to modify different laws is suitable for urgent revision of regulations - or for revision of regulations with a similar content which is stipulated in different laws. This aims at comprehensiveness and consistency of the regulations.

There are opinions saying that laws related to business and investment remain inconsistent and incomprehensive. What do you think?

This is true and it reflects the current practice. In fact, some legal documents involved in business and investment activities have become outdated and have not been updated in a timely way to catch up with modification of the Investment Law. This has led to conflicting regulations and caused difficulties for businesses and investors. Now is the time for us to coordinate with ministries and sectors to review regulations for the sake of investors and enterprises.

Does the MPI hear opposite opinions from professional agencies while drafting the new law?

We hear some different points of view. But there is a high consensus among ministries and sectors, which put national interests and business development above all.

Eliminating business conditions in some areas may loosen the role of State management. What can be done to create the best business and investment environment, while maintaining proper management of enterprises?

As a matter of principle: we do not relax management. Administrators just change the way of managing firms. If the authorities do not find any risks of an enterprise harming security and national defence, they will only supervise it in the post-licensing phase.

Compiling the new law, which will modify many other laws, is a complicated project. Is it feasible for the National Assembly to adopt the law in an upcoming session, as the Government expects?

This complex project has been carried out in a short period of time. But the MPI has actively coordinated with ministries, sectors and associations, especially the Viet Nam Chamber of Commerce and Industry, to scrutinise related contents. We guaranteed careful consideration of State manangement agencies, experts and the business community with regard to the contents. I expect high consent of policymakers for the growth of businesses and national development.