Investment Law 2014 with many important changes passed by the National Assembly dated November 26th 2014 comes into effect from July 1st 2015 and replaces Investment Law 2005. These new regulations are expected to affect positively FDI attraction.
Facilitating FDI businesses
Mr. Duong Tan Thanh, Head of the Foreign Economic Relations division under Department of Planning – Investment, said, an important change in Investment Law 2014 was listing sectors, industries that are prohibited from investment, and sectors, industries having investment conditions.
The gathering, reviewing and specifying the list of prohibited industries and industries having investment conditions based on exclusion method in Investment Law 2014 has renewed principles of law application. In the past, investors were allowed to do business only in prescribed industries; now they are able to invest in all industries except prohibited industries and ones having investment conditions.
Motorcycle assembly line of Vietnam Kwang Yang Co. (Kimco) in Dai Dang industrial park, Thu Dau Mot City.
According to Mr. Pham Van Xo, Chairman of Binh Duong Export Import Association, changes in the Investment Law 2014 has secured business freedom, transparency of the investment environment as well as consistency between Investment Law 2014 and relevant investment laws.
Other important changes in Investment Law 2014 were specifying application forms of incentives, procedures, and conditions for incentives application; abolishing issuance of certificate of investment registration for foreign investors; applying new procedures of 15 days instead of 45 days for certificate of investment registration.
Increasing investment attraction
Investment Law 2014 amended investment incentives in order to improve the quality and efficiency of investment attraction. The law also bettered the current Investment Law in terms of preferential industries in order to attract selective, qualified investments in high-tech industries, large-scale projects, projects in rural areas employing a large number of labors, projects producing industrial support products, investment-socializing projects.
Mr. Dang Xuan Quang, Deputy Head of Foreign Investment Bureau under Ministry of Planning - Investment, said that this was not the first time Vietnam amended Investment Law. After amendments, investors have been more confident about Vietnamese business environment. This has proved through an increase in large-scale investment projects of world large corporations of Samsung, LG... in Vietnam.
According to Mr. Duong Tan Thanh, the province is attracting investments in industrial zones, industries using high levels of intelligence, high technologies and complying with laws; besides, facilitating investments in auxiliary industries. During the first 6 months of 2015, provincial business environment was constantly improved, attracted an total FDI investment of $1.012 billion. Up to now, the province has 2,490 FDI enterprises with total registered capital of over $21.247 billion. As Investment Law 2014 comes into effect, the province hopes for a robust FDI investment stream in the future.
Reported by P.Le – Translated by Ngoc Huynh
