Upcoming laws on Enterprises and Investment to improve Vietnam business landscape

Both the Law on Enterprises and Investment Law, which have been ratified by the National Assembly on 2020 and set to take effect next year, are expected to have a major impact on the business community.

Overview of the workshop.

Lawyer and Chairman of Vietnam International Arbitration Center (VIAC) Tran Huu Huynh made the statement at a workshop on December 18.

“While the current business law has not been up to expectation in terms of consistency, feasibility and transparency, there have been gradual improvements in this regard with strong efforts from the government,” he noted.

Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong said amid a global economic recession as a result of the Covid-19 pandemic, Vietnam has put in place measures, including stimulus programs, to support enterprises and people.

“Efficiency of these measures, however, remain limited, due to the global scale of the crisis that leads to low demand from international market, disruption of supply chains and limited working capital,” said Mr. Phong.

The VCCI Chairman noted Vietnam is participating in a large number of free trade agreements, including next-generation trade deals with high commitments for market access and economic integration.

“Local firms need to thoroughly understand the Law on Enterprises and the Investment Law to take advantage of opportunities from new updates in these laws,” he said.

Director of the Legal Department at the British University of Vietnam Nguyen Kim Dung said the revised laws will help create more convenience for enterprises’ operation in the future.

“The 2020 Investment Law has included investment in education at university level into the list of fields subject to  preferential treatment, I hope in the future universities could receive more incentives in terms of taxes and land resources,” she noted.