Implementation of Investment Law and Law on Enterprises needs to be instructed soon

As a businessman (Chairman of Board of directors of Pacific Corporation), How do  you feel when the Investment Law (revised) and Law on Enterprises (revised) are officially adopted by the NA

Well, the two Law are the results of institutional comprehensive and breakthrough reforms creating opening investment environment; enhancing national competitive capacity and jostling the economy in the coming time.

I believe that both laws will form the legal corridor and opening investment environment, attracting further investment from organizations and individuals, creating strong and sustainable development for the economy.

Which basic contents do you want the Government to instruct to smoothly put it into real life?

Investment Law (revised) focusing on manufacturing new materials, new energy, clean energy, energy-saving products is reasonable. However, in my opinion, when issuing instruction document, it is needed supplement investment incentive sectors including renewable energy.

Currently, wind power and biomass power projects are enjoyed incentive policies regarding tax, credit, land and amount of using lands by the decision of Prime Minister. In order to implement Investment Law smoothly, renewable energy should be put into instruction document related to business lines and investment incentive locations in form of decree.

What do you think about the regulations relating to investment capital in Investment Law (revised)

Investment capital under the regulations of Investment Law (revised) is the amount and other assets to conduct the investment and business activities. The concept is completely true, but the construction need to clarify chartered and investment capital. Currently, a lot of entities issue investment licenses include the two concepts resulting in the congestion in  large projects

Specifically, under the regulations, owners have to have enough capital when registering to business establishment within 90 days since the certificate of business registration is issued. But it is unreasonable for long term projects with investment capital of hundreds or billions dong. That is because it is difficult for investors to mobilize enough capital at once, even when borrowing banks since banks disburse capital according to project’s progress.

Therefore, I think that instruction documents of Investment Law (revised) is needed clarifying under the principle that chartered capital have to be fully contributed within 90 days since certificate of business registration is issued; after fully contributing chartered capital, investors will implement project, contribute capital under the project progress.

How about Law on Enterprises (revised)?

According to the Law on Enterprises (revised), the certificate of business registration is the wit tern or e-document. If it is not regulated in details, Stated management entities will issue certificate of business registration under one of the two forms. In the case the certificate is e document, business needs to apply copies, content statement of business registration when required by competent bodies, partners or customers.

In order to deal with this issue, the instruction shall request business registration bodies to issue certificate of business registration in written form, e-document or both under the requirements of businesses. That arises no cost for state management body and reduces a lot of time, effort and costs for businesses in operation process.