Ha Noi (VNA) – The Ministry of Planning and Investment (MPI) has just submitted a draft decree that will act as an investment guide in line with Viet Nam’s commitments of joining the World Trade Organisation (WTO).
The draft’s main aim is to advise foreign enterpreneurs investing in Viet Nam and will assist them to apply Vietnamese investment law easily and solve any related difficulties.
According to Tran Hao Hung, deputy head of MPI’s legal department, both investors and the authorities have different understandings and interpretations of unclear articles in investment legal documents, which slows the process of issuing investment licences.
Hung takes Investment Law and Decree No. 108, which covers the execution of investment law, as an example.
The decree regulates investments with requirements for foroeign investors. However, it doesn’t specify the requirements, but only refers investors to other laws and international conventions. He said that this makes the domestic legal system unclear leaving investors with major doubts regarding Vietnamese Investment Law.
Furthermore, legal documents relating to the service sector are difficult to execute because the Government has not issued any guiding documents.
Finally, according to WTO commitments, Viet Nam will open educational, medical and environmental services from January 2009. However the country has already opened this sector and permits 100 percent foreign investment.
Hung believes the new guide on investments will limit the above-mentioned shortcomings and make Vietnamese policies and regulations clearer.
The draft contains regulations on the capital contribution of foreign investors to Vietnamese enterprises that allow foreign investors buy unlimited amounts of shares in all fields and sectors.
It then regulates the procedures that domestic enterprises must carry out when renewing business licences after foreign investors have bought shares which have changed the capital content.
In this case, foreign investors will not have to set up the investment project or apply for a business license. This new regulation will solve many concerns.
It is believed that the new decree will be ratified and issued by the Government later this month.-Enditem
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