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May 09, 2018 / 14:21

Finance ministry to ease procedures for securities, insurance sectors

The Ministry of Finance (MoF) has drafted to cut and simplify many business conditions and administrative procedures in its law review this year.

Accordingly, under the revised Securities Law, which will be submitted to the National Assembly for approval in 2019, the ministry proposed to cut 38 business conditions and simplifying 40 administrative procedures in the securities sector.
 
The finance ministry currently manages 370 business conditions
The finance ministry currently manages 370 business conditions
The finance ministry currently manages 370 business conditions. It has recommended getting rid of 99 conditions and reforming 94 administrative procedures in many sectors, including banking-finance, customs, securities, insurance, accounting and auditing as well as tax as per the Government’s order.
The business conditions mentioned in the review include the capital requirement for establishing securities companies (VND100 billion, or US$4.4 million, for a self-trading securities company and VND165 billion for an underwriting company). Conditions related to personnel such as full civil act capacity, offices, working facilities and equipment are also under review.
In the insurance sector, the ministry has proposed eliminating the condition that requires capital contribution in cash because the current Enterprise Law allows investors to contribute capital in various forms.
Instead, it only requires investors to contribute their own capital, comply with the law and ensure that their capital contribution does not affect their business activities.
For the establishment of insurance companies, insurance brokerage enterprises and foreign branches, the ministry has suggested removing the condition of specifying forms for enterprises, charter of the company (for insurance and insurance brokerage firms) and regulations on organization and operations (for foreign branches).
Regarding limited liability companies, the ministry has proposed eliminating the requirement that Vietnamese investors must operate in the fields of finance, banking and insurance to attract more investors to invest in the insurance market.
For foreign investors, the ministry suggested eradicating the condition that requires foreign investors to be insurance companies.
To set up an insurance joint stock company, the ministry has proposed abolishing the condition that founding shareholders must jointly hold at least 50 per cent of ordinary shares of the company in the first three years since the issuance of business license.
Earlier, the Ministry of Finance announced that it was considering removing and simplifying 188 business conditions under its authority. The number accounts for 50.8 percent of the total business conditions regulated for 21 industries and sectors under the ministry’s authority.
To meet the target, the ministry proposed to revise five laws and 11 decrees, of which the revision of the decrees will be submitted to the government for approval and issuance according to simplified order and procedures so that the new regulations can be applied before June 30, 2018.
As for the five laws, the ministry suggested that it will report the revision to the government for consideration. Then, the Prime Minister can submit the revision to the National Assembly (NA) to add them in the NA’s legal building plans before June 30 this year.
Following the government’s instruction, other ministries have also accelerated the removal of cumbersome administrative procedures and business conditions to ease enterprises.
Under Decision No. 767 issued recently, the Ministry of Transport announced the elimination of 384 out of 570 business conditions under the ministry’s authority. The number is equivalent to 67.36 percent of the total business conditions in the transport sector.
The Ministry of Agriculture and Rural Development (MARD) said they were also reviewing and proposing to cut 241 business conditions out of 345, accounting for 70 percent of the total in the area.
According to the MARD, 131 conditions of veterinary, animal feed, plant protection and quarantine, quality control, and genetically modified products will be revised, supplemented or eliminated in the administrative simplification. In addition, many business conditions in the Law on Seafood would continue to be revised and simplified.