Enforcement of new Law of Enterprises under review

SATurday - 20/08/2022 03:26    

Nearly 106,000 enterprises have been established since the new Law on Enterprises took effect on July 1, 2015.

Illustration photo

The Vietnamese Business Registration Authority reported that the newly-established businesses had a total registered capital of VND 768 trillion after the law came into effect in one year.

The number of enterprises surged 27.8% and the amount of registered capital picked up 42.4% in comparison with the same period last year.

In the reviewed period, 1,660 FDI businesses were founded with a total registered capital of VND 62 trillion or VND 37.5 billion on average.

In January-June, additional 54,500 enterprises were set up with a total registered capital of VND 427 trillion, up 20% in number and 51.5% in capital.

Director of the Vietnamese Business Registration Authority assessed that innovative contents of the Law on Enterprises and the Law on Investment; drastic messages of the Government in improving the business environment and business support have attributed to a new wage of start-ups since the second half of 2015.

The senior official reported that the PM and the Government were resolutely determined to put the Law on Investment into reality by issuing nearly 50 guiding decrees on business conditions. In addition, the Government and ministries have seriously reviewed and streamlined unreasonable business conditions which are contradictory with the Constitution and the Law on Investment.

Right after the debut of the two laws, the Ministry of Planning and Investment promptly upgraded and perfected the National Information System on Enterprise Registration. In the first half, up to 2,704 dossiers on business registration were processed online, up four times against the same period in 2015. 

Emerging obstacles

According to Ms. Minh, the enforcement of the two laws faced some obstacles due to the differences with related laws on land, natural resources, environment, construction, housing, real estate and limited openness for foreign investors.

Arising problems in the enforcement of the Law on Enterprises remained modest, chiefly technical and professional issues. However, as the Law on Investment  has a large governing scope  and high innovative rate and relates to other legal documents and State agencies from central to local levels, a large number of problem emerged, the senior official said.

The MoPI and the Working Group on supervising the implementation of the two laws have already assessed and crafted a report to the Government asking for solutions./.