The Vietnam Veterans Business Association has just sent a document to the Prime Minister to continue to contribute comments on amending and supplementing a number of legal policies on investment and business in Vietnam.
“We hope that the Association’s opinions will contribute a small part to the Prime Minister’s consideration and direction in the process of perfecting the legal framework and creating a favorable and transparent environment for investment and development of the business community in the spirit of Resolution 68-NQ/TW of the Politburo on private economic development,” the Vietnam Veterans Business Association expressed.
Specifically, regarding the Investment Law, the Vietnam Veterans Business Association proposed to amend and supplement Clause 3, Article 31, which stipulates the authority to approve investment policies for projects that are simultaneously under the authority to approve investment policies of two or more provincial People's Committees.
Regarding this provision, the Vietnam Veterans Business Association proposed “to delegate authority to the provincial People’s Committee where the project enterprise is established to approve the project investment policy”. This, according to the Vietnam Veterans Business Association, is to “reduce administrative procedures and facilitate enterprises”. Furthermore, it is necessary to assign a provincial People’s Committee to act as the focal point to obtain opinions from the remaining provincial People’s Committees.
Regarding the Investment Law, the Vietnam Veterans Business Association also proposed amending Point d, Clause 1, Article 43.
According to current regulations, “investors must deposit or have a bank guarantee for deposit obligations to ensure the implementation of investment projects that require the State to allocate land, lease land, or permit the change of land use purpose”, except in some cases, including the case where “investors are allocated land or leased land by the State to implement investment projects on the basis of receiving the transfer of land use rights and assets attached to land from other land users”.
The Vietnam Veterans Business Association proposes to amend the regulation to “Investors must deposit or have a bank guarantee for the deposit obligation to ensure the implementation of investment projects that require the State to allocate land, lease land, or permit the change of land use purpose”, except for the following cases: “Investors are allocated land or leased land by the State to implement investment projects on the basis of receiving the transfer of land use rights and assets attached to land from other land users, including cases of changing land use purpose”.
According to the Vietnam Veterans Business Association, the regulation "Investors are allocated land or leased land by the State to implement investment projects on the basis of receiving the transfer of land use rights and assets attached to land from other land users without having to deposit" has existed since the promulgation of Decree 118/2015/ND-CP guiding the Investment Law 2014 and is inherited in the Investment Law 2020 and Decree 31/2021/ND-CP.
According to the Vietnam Veterans Business Association, it is also necessary to review and abolish Section 51 of Official Dispatch No. 2541/CV-TCT dated April 18, 2022 of the Prime Minister's Special Working Group. Section 51 requires "Investors must make a deposit or a credit institution's guarantee on the deposit obligation when changing the land use purpose of investment projects on the basis of receiving the transfer".
According to the Vietnam Veterans Business Association, Section 51 of Official Dispatch No. 2541 may not be in accordance with the provisions of the Investment Law and decrees issued by the Government.
Meanwhile, many investors have just spent hundreds of billions of VND to clear the land themselves, and now when applying for land lease and changing land use purposes, they have to deposit billions more VND, adding to the financial burden for investors in a context where it is necessary to remove difficulties and further encourage agreements on receiving land use rights to implement projects as stipulated in Article 127 of the 2024 Land Law.
Regarding the Law on Investment under the Public-Private Partnership (PPP Law), the Vietnam Veterans Business Association has proposed to amend Clause 2, Article 54.
Specifically, the current law stipulates: "Investors have the right to transfer shares and capital contributions to other investors after completing construction of projects with construction components or after moving to the operation phase for projects without construction components."
The Vietnam Veterans Business Association proposed to amend it to: “Investors have the right to transfer shares and capital contributions to other investors but must ensure the minimum equity ratio of each member as prescribed in Clause 1, Article 42 of this Law”.
At the same time, the Association also proposed to add a new clause to Article 54. This new clause could stipulate that: “Foreign investors have the right to change shareholders, transfer shares and capital contributions abroad but must notify the agency signing the PPP project contract and pay taxes according to Vietnamese law”.
According to the Vietnam Veterans Business Association, the transfer of shares by foreign investors in countries other than Vietnam is in accordance with international practice. However, Vietnamese law does not have specific regulations on changing shareholders, transferring shares, and capital contributions abroad by foreign investors implementing PPP projects.
The Vietnam Veterans Business Association believes that businesses can notify the agency signing the project contract without having to go through approval procedures. In case the transfer generates taxable income in Vietnam, they must pay taxes according to Vietnamese law.
Regarding the PPP Law, the Vietnam Veterans Business Association also proposed amending and supplementing regulations related to the law governing PPP project contracts, as well as transitional provisions...
Currently, the Law amending and supplementing a number of articles of the Law on Bidding, the Law on Investment under the public-private partnership model, the Customs Law, the Law on Value Added Tax, the Law on Export Tax and Import Tax, the Investment Law, the Law on Public Investment, and the Law on Management and Use of Public Assets are being submitted to the National Assembly.
Many provisions of these laws, including the Investment Law and the PPP Law, have been amended and supplemented to facilitate investment and business activities.
Source: https://baodautu.vn/tiep-tuc-sua-luat-de-tao-thuan-loi-cho-hoat-dong-dau-tu-kinh-doanh-d307485.html
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