Hanoi (VNS/VNA)  – The amendments to enterprise and investmentlaws should be aimedat promoting the development of the private sector, a conference held in Hanoiwas told on February 20.

Organised by the Vietnam Chamber of Commerce and Industry (VCCI), the conference aimed to collectopinions about plans to amendthe Law on Investment and the Law on Enterprise being compiled by the Ministry of Planning andInvestment.

VCCI’s Chairman Vu Tien Loc said it was critical to create the legal frameworkfor business households to promote their development.

He cited statistics showing therewere nearly five millions business households in Vietnam who contributed morethan 30 percent to the country’s gross domestic product (GDP). However, theexisting policy framework for business households is inadequate and there was a lackof equalities between business households and official enterprises.

He added that many existing policies made business households reluctant totransform into enterprises.

“The amendments to the Law on Enterprise should take into account effectivesolutions to transform business households into enterprises in an effort to promotethe development of the private sector,” Loc stressed.

“Why are business households which use hundreds of workers each not regarded asenterprises? Their nature is enterprise, in fact. Not recognising business households as enterprises couldbe the largest bottleneck of the Vietnam’s business legal system,” he said.

Loc said the amendments to the law should regulate business households to be atype of enterprise while creating favourableconditions, especially in tax and accounting policies for small and microbusinesses at the same time.

Deputy Minister of Planning and Investment Vu Dai Thang said the ministry wouldtake into account VCCI’s recommendations, admitting that the current policiesof encouraging businesses households to transform into enterprises did notbring about expected results.

According to lawyer Le Van Ha from Pathlaw law firm said it was necessary torecognise their legal status and develop a policy framework for theirdevelopment.

Loc also said that the procedure for registering a business needed to besimplified further, adding that Vietnam’s ranking in market entry by the WorldBank remained low.

Regarding the Law on Investment, Loc said the amendments should focus oneffectively deregulating business prerequisites.

Nguyen Van Toan, Deputy Chairman of the Vietnam Association of Foreign-InvestedEnterprises, said that investment regulations needed a breakthrough to attract investors who owned hightechnology companies and promote the links between domestic firms andforeign-invested companies.

The Ministry of Planning and Investment on Saturday published the draftamendments on its e-portal for public comments.

It said that the goal of amending the two aforesaid laws was to createadvantageous, transparent, fair, safe and friendly investment and businessenvironment for every citizens, enterprises and at the same time improve theState management efficiency on doing business activities.-VNS/VNA