Fundamental changes in the draft revised Investment Law as well asreforms of foreign direct investment (FDI) attraction policy, especiallytax incentives, will help Vietnam lure more FDI, experts said at aconference held by the Vietnam Chamber of Commerce and Industry in Hanoion November 20.
The listing of sectors andareas forbidden from investment and business or allowed for investmentand business with certain conditions is one of the most important newpoints in the draft revised Investment Law, said Quach Ngoc Tuan, deputyhead of the Legal Department at the Ministry of Planning andInvestment.
According to the draft, six sectors arelisted as banned from investment and 272 areas specified as conditionalinvestment domains, a remarkable reduction from the current 51prohibited investment domains and 386 conditional investment fields asprescribed in the current law, he noted.
The draftlaw also provides in great details the forms of investment incentives,the principles, procedures and conditions to apply those incentives.There will no longer be a separate investment licence for foreigninvestors, and the duration of granting investment licence is shorten to15 days instead of 45 days, Tuan added.
Meanwhile,Nguyen Van Phung, head of the Large Taxpayers Office at the Ministry ofFinance’s General Department of Taxation, said new tax policies willbenefit investors remarkably.
VCCI Director Vu TienLoc said the draft revised Investment Law, which is expected to passedsoon, clarifies State areas and sectors prioritised for investment,while addressing problems related to conditional investment domains,thus building an open and transparent investment environment.
Statistics from the Foreign Investment Agency under the Ministry ofPlanning and Investment, FDI accounts for 22-25 percent of total socialinvestment and is on a rising trend.
Last year,Vietnam disbursed 11.5 billion USD of FDI and is aiming for 12.5 billionUSD this year, according to the department. Ten largest FDI partners ofVietnam are Japan, the Republic of Korea, Singapore, Taiwan (China),the UK, Hong Kong (China), the US, Malaysia, China and Thailand.
Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign InvestedEnterprises, said Vietnam is seeing a new strong wave of FDI with higherquality and technology, citing as examples projects invested by majorplayers including Samsung, Microsolf and Intel.
He howeverwarned that Vietnam should work harder to improve the enforcement of itspolicies, adding that about 15,000 FDI enterprises are facing manyproblems due to poor performance of the contingent of public servants.
Speaking on the sidelines of the conference, SpanishAmbassador to Vietnam Alfonso Tena said foreign investment is crucial infueling the economic development of Vietnam .
However, to make full use of the investment, Vietnam should simplifyand shorten procedure on investment and customs, he said.-VNA
The listing of sectors andareas forbidden from investment and business or allowed for investmentand business with certain conditions is one of the most important newpoints in the draft revised Investment Law, said Quach Ngoc Tuan, deputyhead of the Legal Department at the Ministry of Planning andInvestment.
According to the draft, six sectors arelisted as banned from investment and 272 areas specified as conditionalinvestment domains, a remarkable reduction from the current 51prohibited investment domains and 386 conditional investment fields asprescribed in the current law, he noted.
The draftlaw also provides in great details the forms of investment incentives,the principles, procedures and conditions to apply those incentives.There will no longer be a separate investment licence for foreigninvestors, and the duration of granting investment licence is shorten to15 days instead of 45 days, Tuan added.
Meanwhile,Nguyen Van Phung, head of the Large Taxpayers Office at the Ministry ofFinance’s General Department of Taxation, said new tax policies willbenefit investors remarkably.
VCCI Director Vu TienLoc said the draft revised Investment Law, which is expected to passedsoon, clarifies State areas and sectors prioritised for investment,while addressing problems related to conditional investment domains,thus building an open and transparent investment environment.
Statistics from the Foreign Investment Agency under the Ministry ofPlanning and Investment, FDI accounts for 22-25 percent of total socialinvestment and is on a rising trend.
Last year,Vietnam disbursed 11.5 billion USD of FDI and is aiming for 12.5 billionUSD this year, according to the department. Ten largest FDI partners ofVietnam are Japan, the Republic of Korea, Singapore, Taiwan (China),the UK, Hong Kong (China), the US, Malaysia, China and Thailand.
Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign InvestedEnterprises, said Vietnam is seeing a new strong wave of FDI with higherquality and technology, citing as examples projects invested by majorplayers including Samsung, Microsolf and Intel.
He howeverwarned that Vietnam should work harder to improve the enforcement of itspolicies, adding that about 15,000 FDI enterprises are facing manyproblems due to poor performance of the contingent of public servants.
Speaking on the sidelines of the conference, SpanishAmbassador to Vietnam Alfonso Tena said foreign investment is crucial infueling the economic development of Vietnam .
However, to make full use of the investment, Vietnam should simplifyand shorten procedure on investment and customs, he said.-VNA
