Following the Law on Enterprises time-lagissued in November 2014 and the Law on Investment No. 67/2014/QH13 issued on 26 November 2014 (collectively referred to as the “Laws”) which have become effective as of 01 July 2015, the Government is conducting final step to issue Decrees providing detailed guidelines for implementation of the Laws.
Fortunately, the Government has just issued a new Decree on business registration which can be considered as an overriding Decree for Decree No. 43/2010 on business registration. Upon taking effect of this Decree, certain items related to administrative procedures in business registration which is being temperately regulated in Official Dispatches No. 4211/BKHĐT-ĐKKD issued by the Ministry of Planning and Investment (the “MPI”) shall be replaced by guidelines of such Decree. However, as a matter of practice, the MPI shall issue a new Circular providing all forms which shall be applicable to business registration.
In addition, the Government has issued the Resolution No. 59/NQ-CP dated on 07 August 2015, providing an action plan for application of the Laws. One of the most important items of this Resolution is that the Government planned the new Decrees providing detailed guidelines for the Laws to be issued within September 2015.
Referring to the most updated draft of the above-mentioned Decrees, it is understood that the new Decree providing detailed guidelines for the Law on Enterprises mainly revolves around (i) social enterprises, seal of enterprises and cross ownership only. Thus, it is suggested that a number of issues related to the Law on Enterprises which are not addressed in such Decree may create difficulties for enterprises and investors.
In the meantime, the MPI is finalizing the final draft of the new Decree providing detailed guidelines for the Law on Investment. Further to the report submitted to the Government dated on 26 August 2015, it is believed that the draft of such Decree has been revised in a way that it can bring more favorable business environment to foreign enterprises and investors. Following the concept of issuance of the laws in Vietnam as mentioned above, a new Circular or Decision providing all forms applicable for investment registration shall be issued after issuance of such Decree.
Last but not least, a list of conditional business lines applicable to foreign investors has been finalized, after collecting opinions from relevant Ministries. This list has been also submitted to the Government on 03 September 2015 for a final examination of the Government.
Despite the anticipated benefits from the Laws, there might be a time-lag before foreign investors and enterprises may actually enjoy the favorable policies set out by the Laws.
By Vietnam Law Insight (LNT & Partners)
Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact the author Thuy Nguyen at (firstname.lastname@example.org) or visit the website: Http://LNTpartners.com