Hanoi (VNS/VNA) - The amendments to the Law onEnterprise and Law on Investment must include stronger solutions to thoroughlyand comprehensively reform State-owned enterprises (SOEs) and enhance theirefficiency, according to the Vietnam Association of Financial Investors (VAFI).

In a recent document sent to the Government about VAFI’srecommendations regarding amendments to the enterprise and investment laws, theassociation pointed out that there was a shortage of effective solutions totackle the weak management at SOEs, which was hindering the country’ssocio-economic development.

“It is necessary to have drastic measures to reform SOEswith efficiency,” VAFI said. VAFI said that the amended laws should include anew definition for SOEs – those with the State holding a controlling stake,listed on stock exchanges and operating in sectors requiring a controllingState stake.

The association also said that the amended laws must enhancethe accountability of all members of SOEs’ management boards and boards of supervisors.All other SOEs must be equitised and listed on stock exchanges.

VAFI estimated that if the amended laws could enhance SOEsefficiency, the State budget could collect up to 100 billion USD in the next 15years, a significant sum to help reduce public debt and invest in transportinfrastructure, including the North-South high-speed railway and urban metro inHanoi and HCM City.

VAFI also recommended that foreign investors foundingbusiness or holding controlling stakes at firms in Vietnam under the Law onEnterprise and the Law on Investment should be regarded as domestic investors.

In addition, the regulation on caps on the ownership offoreign investors could not limit the reception of technology and capital fromthe foreign investors, urging the Government to issue a new list of businesslines requiring foreign ownership caps.

VAFI estimated that around 80 percent of existing businesslines with foreign ownership caps should be removed.

VAFI asked why Singapore was one of the largest financial centresin Asia. It was because its Law on Enterprise treats all investors equally, theassociation said.

VAFI said that the development of the Vietnamese economyand business community was entering a more intensive period in thetechnology-driven era, requiring management to be more facilitating.

“The Government should regard amending the investment andbusiness laws to be a revolution,” VAFI said.

The association said that the draft law which was recentlymade public for comments did not really create changes to bring benefits to theeconomy and the business community, urging more amendments.

The laws must create framework which helped attract moreforeign capital and technology.

The procedures for setting up businesses must be simplified,the association said.-VNS/VNA