The new investment law aims to improve fairness and transparency, theMinistry of Planning and Investment's Legal Department deputy directorQuach Ngoc Tuan told Dau Tu (Vietnam Investment Review).
Q: Theproposal in the draft Investment Law to eliminate investmentcertificates in many projects has been described as a progressive stepin improving the business environment. Please elaborate about theproposal.
A: The elimination of investment certificates is one ofthe five new elements in the draft law. However, conditional investmentprojects, which affect national defense, security, social order andsafety, ecological environment and education and training, still needinvestment certificates.
I hope that when the draft law isapproved by the National Assembly, it will drastically change theinvestment environment in our country. The decision will improve theadministrative procedures for investors and eliminate the duplicationsrequired by Vietnamese management agencies.
The draft lawdescribes procedures that a project has to follow and theresponsibilities of the local management agencies in supporting theinvestors to prepare their projects.
If the investors need tothemselves find information about work done on project sites in thepast, under the new law it is the responsibility of the local managementagencies to provide the information to them.
Q: What are the other new components in the draft law?
A:The second component, which is also very important, is the eliminationof unfair legal treatment of foreign investors on the right to establishtheir business and on investment activities in all economic sectors.
Thethird one is that except some restrictions on the percentage of capitalinvestment and the scope of activities in line with Vietnamese laws andinternational treaties, foreign investors have the right to establishall forms of enterprises as regulated in the Business Law. They areallowed to contribute capital or buy shares in Vietnamese enterpriseswithout any limitations.
The fourth one is that there will be no discrimination in investment activities between the Vietnamese and foreign investors.
Andlast but not least is the need for information disclosure aboutconditional investment projects, including factors such as areas ofinvestment; applied conditions, application rationale and the authorisedmanagement agencies.
Q: Does the new Investment Law come with a clearer definition of "foreign investor"?
A:One of the purposes of defining the concept of foreign investors orenterprises with foreign capital investment is to apply investmentconditions and procedures on the investors' enterprises. The definitionwill provide a legal basis for a unified application nationwide.
Thedraft law also covers the definition of foreign investors based oncertain information, including their nationality, business registrationplace, ownership percentage (at least 51 percent of company's registeredcapital) and others.
Q: Do you think the new law will create problems for foreign investors who are already doing business in Vietnam?
A:No! What's been written in the new law reflects our existing legaldocuments, including the Investment Law, guiding documents on theimplementation of the Law on Business, the Prime Minister's decisions No88/2009/QD-TTg and No 55/2009/QD-TTg.
I just want to reiteratethat the new regulations, basically, do not alter the investment andbusiness conditions applying to the foreign investors. The newInvestment Law ensures unity and conformity with all other relevant lawsin Vietnam, including the Vietnam Securities Law and the Land Law.-VNA
Q: Theproposal in the draft Investment Law to eliminate investmentcertificates in many projects has been described as a progressive stepin improving the business environment. Please elaborate about theproposal.
A: The elimination of investment certificates is one ofthe five new elements in the draft law. However, conditional investmentprojects, which affect national defense, security, social order andsafety, ecological environment and education and training, still needinvestment certificates.
I hope that when the draft law isapproved by the National Assembly, it will drastically change theinvestment environment in our country. The decision will improve theadministrative procedures for investors and eliminate the duplicationsrequired by Vietnamese management agencies.
The draft lawdescribes procedures that a project has to follow and theresponsibilities of the local management agencies in supporting theinvestors to prepare their projects.
If the investors need tothemselves find information about work done on project sites in thepast, under the new law it is the responsibility of the local managementagencies to provide the information to them.
Q: What are the other new components in the draft law?
A:The second component, which is also very important, is the eliminationof unfair legal treatment of foreign investors on the right to establishtheir business and on investment activities in all economic sectors.
Thethird one is that except some restrictions on the percentage of capitalinvestment and the scope of activities in line with Vietnamese laws andinternational treaties, foreign investors have the right to establishall forms of enterprises as regulated in the Business Law. They areallowed to contribute capital or buy shares in Vietnamese enterpriseswithout any limitations.
The fourth one is that there will be no discrimination in investment activities between the Vietnamese and foreign investors.
Andlast but not least is the need for information disclosure aboutconditional investment projects, including factors such as areas ofinvestment; applied conditions, application rationale and the authorisedmanagement agencies.
Q: Does the new Investment Law come with a clearer definition of "foreign investor"?
A:One of the purposes of defining the concept of foreign investors orenterprises with foreign capital investment is to apply investmentconditions and procedures on the investors' enterprises. The definitionwill provide a legal basis for a unified application nationwide.
Thedraft law also covers the definition of foreign investors based oncertain information, including their nationality, business registrationplace, ownership percentage (at least 51 percent of company's registeredcapital) and others.
Q: Do you think the new law will create problems for foreign investors who are already doing business in Vietnam?
A:No! What's been written in the new law reflects our existing legaldocuments, including the Investment Law, guiding documents on theimplementation of the Law on Business, the Prime Minister's decisions No88/2009/QD-TTg and No 55/2009/QD-TTg.
I just want to reiteratethat the new regulations, basically, do not alter the investment andbusiness conditions applying to the foreign investors. The newInvestment Law ensures unity and conformity with all other relevant lawsin Vietnam, including the Vietnam Securities Law and the Land Law.-VNA
