-
 I
think the draft CIL has indeed been designed to create a level
playing field. Almost all of its provisions are applicable to
all investors and businesspeople, regardless of their
nationality. Less favorable treatment of foreign investors
remains, but only in provisions related to some conditional
sectors.
The big issue for domestic investors is the fact that overall,
the “level playing field” is actually less favorable for them.
The new CIL conveys a sense of more control similar to the more
restrictive FIL. Instead, the CIL should apply some of the
investment-friendly provisions contained in the existing Law on
Domestic Investment Promotion.
Mr. Vu Tien Loc, President and Chairman,
Vietnam Chamber of Commerce and Industry
-
Initially, the CIL
was planned to replace the Law on Domestic Investment Promotion
and the Foreign Investment Law, so as to create (together with
the UEL) a conducive and equitable business environment for all
types of enterprises. In other words, the CIL was originally
designed to regulate investment activity of private investors.
But in Vietnam “investment” encompasses both private investment
and state-funded investment, and as a result, state-funded
investment activities were included in the CIL.
I believe that this is a big mistake, as state investment needs
to be strictly regulated and should follow a different set of
rules. Private investment–both domestic and foreign–needs to be
promoted, and therefore would benefit from more favorable
regulations. The two opposing approaches of “more control” and
“simplified procedures” cannot co-exist in a single law. Thus,
the “more control” approach ends up dominating the draft CIL. We
suggest designing a law on investment promotion exclusively for
profit-oriented investment activity.
Mr. Tran Vu Hai, Attorney,
Managing Partner, The Law Office Tran Vu Hai
-
The unification of
investment regulations, aiming to create an equitable business
environment for different players, has a number of advantages.
These include, first, explaining in a single consolidated source
what the procedures are, and second, consolidating the state
management agencies. This is a welcome change. But the basic
question is whether the new law will provide people with more
business freedom. Moreover, for amendments of the investment and
enterprise laws to be really effective in creating a better and
more equal business environment, there is a need to reform
regulations in related sectors such as banking, taxation, land,
labor, social security, and so on.
Mr. Nguyen Tien Lap, Deputy General Director,
InvestConsult
-
Frankly, I think most of us in the business community are a
little concerned that the CIL will add new so-called “baby
permits” to the investment environment. There seems no need to
have a common investment law, because most of what the old FIL
covered is addressed in the draft UEL. As a corporate law, the
UEL is addressing the issue of creating a level playing field,
and seems to cover the basic corporate governance framework for
all companies. That would be sufficient. The origial purpose for
the CIL, as I understood it, was to set forth investment
guarantees that applied equally to all businesses. A second
purpose was to set forth the tax incentives rate standards–i.e.
who would be eligible for tax incentives–on an equal basis for
all businesses, both foreign and domestic.
Mr. Fred Burke, Managing Partner,
the Law Offices of Baker & McKenzie
-
 The
unification of the FIL and the Law for Domestic Investment
Promotion into the Common Investment Law, will elimitate
discrimination and create a level playing field for businesses
in all economic sectors. This move aligns Vietnam with its
international commitments. However, for foreign investors, the
principle of non-discrimination and investment freedom will not
be applied 100%. Rather, it will follow the integration roadmap
that Vietnam is committed to. The signing and implementation of
international agreements commit Vietnam to open up its market,
and remove investment-related obstacles, customs and non-customs
barriers, and any subsidies incompatible with international
practice, while at the same time, permitting it to maintain
protection of domestic production for as long as the agreed
timetable allows.
Mr. Pham Manh Dung, Director,
MPI Legal Department, Head of the CIL Drafting Committee
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