“It is necessary to issue the decree in order to implement the Investment Law. However, we should ensure its quality. The decree should meet investors’ ultimate demand and contribute to creating a favorable and open business environment in Vietnam. That’s the ultimate goal of this decree,” said Pham Chi Lan, a member of the Prime Minister Research Commission.
Composed of 100 articles arranged in eight chapters, the draft decree provides for forms of investment; domains and geographical areas for investment, investment preferences and support; rights and obligations of investors; execution of investment projects and organization of business activities; procedures for direct investment; and state management of investment.
However, it still reveals some disadvantages, including complicated registration and examination procedures and absence of specific and transparent regulations on significant issues such as responsibilities of state offices and investors’ right to complain.
In case of temporary cessation of investment projects, while the Investment Law requires investors to notify such in writing to state agencies in charge of investment only when they wish to enjoy land rent exemption or reduction, under the draft decree, investors are asked to do so in all cases, even upon resuming their operation.
The draft decree’s provisions that charters of foreign-invested enterprises should specify the project operation duration, project execution schedule are also against the Enterprise Law.
Regarding the procedures for examination of projects capitalized at over VND 300 billion and projects in conditional business domains, although the draft requires domestic investors to submit too many papers, there are no clear grounds for licensing agencies to decide whether or not to grant investment licenses. Besides, while the Investment Law stipulates that the investment examination time limit shall not exceed 45 days, examination procedures specified in the draft decree may take up to 58 days for completion.
In an attempt to enforce the Investment Law, the MPI already submitted to the Prime Minister provisional regulations, providing principles for approving investment projects, pending formal sub-law guidance.
Under the regulations, authorities may give immediate approval to investment projects that are obviously in line with the Investment Law, without having to wait for more detailed guidance.
Concerning projects with blueprints already sent to authorities and still pending approval, they would be considered in light of the new law and investors would be required to submit supplemental papers if necessary before being granted an investment certificate.
(Source: vnanet.com) |
