NA deputies still want more from Enterprise Law

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NA deputies still want more from Enterprise Law

Most National Assembly (NA) deputies on June 17 applauded draft amendments to the Enterprise Law but suggested that some issues should be clarified to better business operations in the country. The revision of the Enterprise Law aims to create a legal framework to facilitate the enterprise restructuring process by focusing on State economic groups and corporations while offering a new impetus to the development of the corporate sector with an advanced management method in accordance with international economic integration. The NA will consider further suggestions for the draft law before passing it.

Given draft amendments to the law, enterprises would have the right to do business in all fields that are not prohibited by the law.

Many deputies agreed that the right to freely doing business is an important right stipulated in the Constitution and the revised Enterprise Law aims to institutionalize this right.

For prohibited and conditional sectors, the Government will release specific lists of these industries which will be reviewed annually.

Speaking at a discussion session in Hanoi on June 17, Vietnam Chamber of Commerce and Industry (VCCI) president Vu Tien Loc said that the revisions are a breakthrough.

In fact, under the current regulations enterprises can register a lot of business scopes to facilitate their operations but this practice has caused troubles for both enterprises and administering agencies.

Many of the deputies said that regulations on business setups conform to international practices as from now on areas of business would not be written on business registration certificates.

In addition, Loc said that it is necessary to publicize lists of prohibited and conditional sectors to facilitate business operations. The lists should be updated regularly and only ministries are assigned to announce the lists.

Deputy Nguyen Thi Hue from Dac Lak Province said that the Enterprise Law should be adjusted to eliminate discrimination in investment and business procedures.

This is in line with Vietnam’s commitments to the World Trade Organization (WTO) and those of the Trans-Pacific Partnership agreement in the future. The law should clarify regulations on establishment of businesses and the necessary conditions for a business, she said.

Other deputies still suggested that there should be a specific mechanism for examination.

Quoting the General Statistics Office, deputy Tran Hoang Ngan from HCMC said Vietnam saw nearly 200,000 businesses set up in 2005 and over 621,000 in 2013.

However, among the 621,000 firms, only 356,000 companies are really active. The remaining 264,800 are not supervised by authorities. Therefore, it is necessary to strengthen oversight, Ngan said.
Minh Duc