To bring the Enterprise Law and Investment Law into life

(Baonghean) - The Ministry of Planning and Investment said that since the Law on Enterprises and the Law on Investment came into effect (July 1, 2015), business registration activities have had positive changes with the number of newly established enterprises increasing significantly, and the registered capital increasing significantly compared to the same period in 2014. From July 1, 2015 to December 15, 2015, there were 46,740 enterprises registered with a total registered capital of VND 302,674 billion, an increase of 24.5% in the number of enterprises and an increase of 50.3% in the newly registered capital.

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Thus, compared to the same 12 months of 2014, the number of newly registered enterprises in 2015 increased significantly, with an increase of 25.4% in the number of enterprises and an increase of 37.9% in capital. The number of newly established enterprises in 2015 (as of December 15, 2015) reached 93,868 enterprises, the largest number of newly registered enterprises ever. This is a positive signal showing that the investment and business environment has improved and become more attractive to investors after the Enterprise Law and Investment Law came into effect.

According to the Ministry of Planning and Investment, from July 1, 2015 to December 15, 2015, the country had 842 foreign investment projects granted investment registration certificates with a total registered capital of 7.532 billion USD, 788 projects registered to increase investment capital with a total registered capital increase of 5.374 billion USD. In general, during this period, the total newly registered and increased capital was 12.9 billion USD, accounting for 42.3% of the number of projects and 57% of the total investment capital of the country since the beginning of the year. During the same period, 690 domestic investment projects were granted investment registration certificates with a total registered capital of more than 200 trillion VND (equivalent to 9.4 billion USD) and 368 projects adjusted their investment certificates.

However, the most encouraging thing is that up to now, all the documents detailing and guiding the implementation of the Investment Law and the Enterprise Law have been issued by the Ministry of Planning and Investment, including 4 decrees guiding the implementation of the Enterprise Law, 2 decrees guiding the implementation of the Investment Law and 3 Circulars. In addition, to guide the implementation of the Investment Law, the Prime Minister issued Decision No. 19/2015/QD-TTg dated June 15, 2015 on criteria for determining high-tech enterprises; The State Bank of Vietnam has completed all procedures according to regulations to submit to the Government for promulgation of a Decree detailing the implementation of indirect investment abroad.

In addition, in order to ensure full and consistent implementation of the provisions of the Investment Law on conditional investment and business sectors, the Ministry of Planning and Investment and other ministries and branches have coordinated to review investment and business conditions applicable to 267 conditional investment and business sectors as prescribed; complete the list of investment conditions applicable to foreign investors as prescribed by law and international treaties to which Vietnam is a member; and regularly review investment and business conditions. Ministries and branches have implemented the review of legal documents regulating investment and business conditions under their management.

Real estate businesses still face difficulties. Illustrative photo

The review results also show that there are many unnecessary investment and business conditions, creating high compliance costs and limiting market entry for enterprises. Of the 5,826 investment and business conditions applicable to 267 conditional investment and business sectors as prescribed by the Investment Law, up to 2,833 conditions are currently stipulated in documents issued without proper authority, including documents issued before and after the Investment Law took effect. It is particularly noteworthy that after the Investment Law took effect, a number of ministries continued to issue and draft circulars regulating business conditions, said Minister Nguyen Quang Vinh.

Currently, ministries, branches and localities continue to review and complete relevant legal documents to ensure consistency with the Enterprise Law and the Investment Law. Accordingly, the review and assessment of the implementation of Resolution No. 43/NQ-CP dated June 6, 2014 of the Government on a number of key tasks of reforming administrative procedures in the formation and implementation of investment projects using land to improve the business environment needs to be further promoted. The review results of the Ministry of Planning and Investment and a number of localities show that, in addition to solutions to reform administrative procedures on the implementation of investment projects using land that have been legalized in a number of Laws (such as the Land Law, the Environmental Protection Law, the Construction Law), many other solutions stipulated in Resolution 43/NQ-CP are no longer suitable because the corresponding provisions in the above Laws have changed.

In addition, the implementation of these Laws has also begun to give rise to new problems, requiring consideration and resolution to ensure the feasibility and consistency of the legal system.

According to Minister Nguyen Quang Vinh, in the solutions to be implemented in the coming time, in addition to continuing to ensure the implementation of regulations on controlling investment and business conditions according to the provisions of the Investment Law; perfecting relevant legal documents to ensure consistency with the provisions of the Enterprise Law and the Investment Law, it is necessary to continue efforts to propagate and popularize the Enterprise Law and the Investment Law; save and improve the operational efficiency of investment registration agencies and business registration agencies to resolve a number of investment registration and business registration procedures according to the new provisions of the Investment Law and Decree 118/2015 of the Government.

Red River