What's new in Vietnam's amended Investment Law?
This law version bans the debt collection service.
The National Assembly (NA) on July 17 approved the revised Law on Investment with the endorsement of 92.34% of its deputies present, with several major changes.
|The National Assembly on July 17 approved the revised Law on Investment with the endorsement of 92.34% of its deputies present. Photo: Quochoi.vn|
Among new changes in this law version, the debt collection service has now been banned.
Meanwhile, the law also stipulates specific sectors and targets entitled to investment incentives, mainly those in fields of hi-tech, innovative startups, R&D, production of new materials, new and clean energies, IT products, digital content, among others.
The law also provides incentives for projects with investment capital of over VND3 trillion (US$128.4 million), given the condition that investors have to disburse at least VND1 trillion (US$42.8 million) within the first three years.
Projects having disbursed at least VND10 trillion (US$428 million) in three years since receiving the investment license would receive special incentives.
Regarding investment procedures in forms of capital contribution or stake acquisition, many NA deputies said it is essential to have strong measures to prevent such investment channels in strategic locations on the ground of national security.
The NA Standing Committee said there should be a balance between national security and investment attraction for socio-economic development, especially at coastal and remote areas.
Therefore, the committee suggested investments via capital contribution or stake acquisition should meet criteria related to market access and national security.
Notably, the law would not include requirement for the prime minister’s approval regarding projects with investment capital of VND10 trillion (US$428 million) as NA deputies said the capital belongs to private investors so they decide what to do with their money, not the government.
The revise Law on Investment is set to take effect on January 1, 2021.
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