-
I think one major
strong point of the draft CIL is that it opens up a number of
sectors, currently under state monopoly, to domestic investors.
These include publishing, television, radio broadcasting,
advertising, air transport, maritime and air ports, and
petroleum exploitation. If the State is really to open up these
sectors, we will witness a boom in private investment in the
services sector in the coming years. However, this opening will
not materialize unless the National Assembly amends related
specialized laws, so as to open these sectors to domestic
investors before Vietnam's international commitments open them
to foreign investors
Mr. Tran Vu Hai, Attorney,
Managing Partner, the Law Office Tran Vu Hai
-
 The
risk of overlap and conflict of law is one of my biggest
concerns to date. If you look at the CIL in conjunction with the
UEL, paperwork will be duplicated, not eliminated. The last CIL
draft has a whole section on tendering. But tendering is already
covered under existing tendering regulations. In this case, if
the two laws are not word-for-word the same, or if the
Government or the National Asembly later amends one of them, it
will cause a lot of trouble for people. The same concern applies
to tax incentives and project appraisal criteria, which are also
covered by other laws.
Mr. Fred Burke, Managing Partner,
the Law Offices of Baker & McKenzie
-
Business freedom needs to go hand-in-hand with the protection of
the public interest. The review of the Enterprise Law's
implementation shows that we have made life easier for
businesspeople, at the expense of many other people. A number of
“ghost' enterprises have been set up to illegally trade VAT
bills, and many fake projects have been formulated by people who
just want to raise money and then disappear with it. There is an
urgent need to restore corporate social responsibility and
ensure financial security in business. The draft CIL will enable
the State to better handle registration and implementation of
investment projects. The introduction of investment registration
procedures is a nessessary measure to address these “bogus”
enterprises who cheat customers. Those enterprises which exist
only in paper will be inspected and punished. The draft stresses
the supervisory role of the State and the implementation role of
Ministries, as well as the role of investment inspectors.
Mr. Pham Manh Dung, Director,
the MPI Legal Department, Head of the CIL Drafting Committee
-
I find that the CIL reflects less business freedom than the
current Enterprise Law. The CIL maintains strict State control
over investment projects, by classifying them into four
categories, of which three require appraisal and licensing. Some
people argue that State control is necessary to limit the number
of “ghost” firms. But this is kind of thinking is wrong, because
establishing and registering an enterprise is an individual's
right. The fact that some enterprises fail very quickly is
common in a market economy; just because the State does not have
the capacity to keep track of company closures does not mean it
should restrict business freedom. Instead the focus should be on
strengthening the capacity of State agencies to cope with
changes in the business environment. Adding more control does
not guarantee against inefficiency and waste, as many SOEs have
demonstrated. Clearly the solution needs to be found elsewhere.
To successfully carry out public administration reform, the
State should minimize its involvement in the activities of
businesses–that should be left to the investors themselves. If
private investors need to appraise their project's feasibility,
they can enlist the help of banks or independent auditors.
Vietnam has been moving towards a market economy, we should let
the market work on its own.
Mr. Nguyen Tien Lap, Deputy General Director,
InvestConsult
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