Businesses to get fair deal

“Vietnam is actively implementing a regional and international economic integration roadmap and finalising its full commitments to international organisations,” said Bui Ngoc Thanh, head of the National Assembly Office, at a press conference last week.
The 8th session of the National Assembly 11th Congress is scheduled to commence this week in Ba Dinh Hall, with the approval of new laws expected to have a direct effect on both foreign invested, and domestic enterprises.
New business and investment laws are expected to create a level playing field and investment environment for both foreign invested and domestic firms currently operating, as well as projects in the preparation stage.
Laws on amendment and complement to some articles in the law on value added tax and the law on special consumption tax - will not only establish common tax levels for several kinds of products, but remove the existing discrimination of tax and help Vietnam quickly fulfill commitments that will bring it in line with many developed countries.
Laws of tender, electronic transactions, intellectual property, bill of exchange, and environment protection will formulate a clearer legal framework of regulations in specific sectors that enterprises are involved; however, presently the framework remains incomplete and limited.
The foreign enterprise community has applauded the progress made during the session, claiming that a level playing field for foreign and domestic enterprises will help the country attract more foreign investment capital and achieve its ambitious targets of socio-economic development.
“A common special consumption tax (SCT) for both locally assembled and imported cars is the logical answer, removing the existing system of two different tax levels,” said Thomas K. Rapp, general director of the Mercedes Benz Vietnam Ltd.
Under law’s amendments, the SCT on locally assembled and imported cars will be unified at 50 per cent, instead of the respective 40 per cent and 100 per cent levels.
Thanh said that the government, “is coping with the difficulty of drawing foreign investment capital and investment capital from privately owned business at the maximal level.” (investment capital - do you mean to say twice?/)
The government has targeted the GDP growth rate at 7.5 to 8 per cent from 2006 until 2010; whilst the scale of GDP and income per capita would reach an equivalent of around $94-98 billion and $1,050-1,100 by 2010, respectively.
It is anticipated that the 14 laws and one resolution will be approved during this session; whilst other 9 laws, including social insurance, real estate trading, civil aviation, information technology, judgement enforcement, movie industry, real estate registration, lawyers, the prevention of and fight against HIV/AIDS will be put forward for discussion and approval at a later date.