Want to be in the loop?
subscribe to
our notification
Business News
AMENDMENTS TO ENTERPRISE, INVESTMENT LAWS MUST PROMOTE SOE EFFICIENCY
The amendments to the Law on Enterprise and Law on Investment must include stronger solutions to thoroughly and comprehensively reform State-owned enterprises (SOEs) and enhance their efficiency, according to the Vietnam Association of Financial Investors (VAFI).
In a recent document sent to the Government about VAFI’s recommendations regarding amendments to the enterprise and investment laws, the association pointed out that there was a shortage of effective solutions to tackle the weak management at SOEs, which was hindering the country’s socio-economic development.
“It is necessary to have drastic measures to reform SOEs with efficiency,” VAFI said. VAFI said that the amended laws should include a new definition for SOEs – those with the State holding a controlling stake, listed on stock exchanges and operating in sectors requiring a controlling State stake.
The association also said that the amended laws must enhance the accountability of all members of SOEs’ management boards and boards of supervisors.
All others SOEs must be privatized and listed on stock exchanges.
VAFI estimated that if the amended laws could enhance SOEs efficiency, the State budget could collect up to US$100 billion in the next 15 years, a significant sum to help reduce public debt and invest in transport infrastructure, including the North-South high-speed railway and urban metro in Hanoi and HCM City.
VAFI also recommended that foreign investors founding business or holding controlling stakes at firms in Vietnam under the Law on Enterprise and the Law on Investment should be regarded as domestic investors.
In addition, the regulation on caps on the ownership of foreign investors could not limit the reception of technology and capital from the foreign investors, urging the Government to issue a new list of business lines requiring foreign ownership caps.
VAFI estimated that around 80 % of existing business lines with foreign ownership caps should be removed.
VAFI asked why Singapore was one of the largest financial centers in Asia. It was because its Law on Enterprise treats all investors equally, the association said.
VAFI said that the development of the Vietnamese economy and business community was entering a more intensive period in the technology-driven era, requiring management to be more facilitating.
“The Government should regard amending the investment and business laws to be a revolution,” VAFI said.
The association said that the draft law which was recently made public for comments did not really create changes to bring benefits to the economy and the business community, urging more amendments.
The laws must create framework which helped attract more foreign capital and technology.
The procedures for setting up businesses must be simplified, the association said.
Source: VCCI
Related News
![Card image cap](/uploads/news/Eco4.jpg)
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
![Card image cap](/uploads/Logo/Cathay%202023.png)
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
![Card image cap](/uploads/news/Eco2.jpg)
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
![Card image cap](/uploads/news/Solar1.jpg)
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
![Card image cap](/uploads/news/Eco7.jpg)
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
![Card image cap](/uploads/news/Investment6.jpg)
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.