VN considering enterprise law amendments

According to a government report presented by Minister of Planning and Investment Bui Quang Vinh, Clause 2 under Article 170 of the 2005 Enterprise Law prescribes that foreign invested firms operating under the Foreign Investment Law in Vietnam can either re-register for operation and management in accordance with the Enterprise Law or not re-register. Those who say no to re-registration will see their business operation limited to the activities specified in their investment licences.

Statistics show that by July 1, 2011, the re-registration deadline, about 3,000 out of 6,000 FDI enterprises were yet to re-register. The licences of some have expired but they want to continue operating while others with still valid licences want to extend operation to other business fields.

The government has proposed amendments to Article 170 of the Enterprise Law in order to allow FDI businesses to maintain their operations, especially those that have stable production, create stable jobs for local workers and contribute to social welfare and state budget.

The amendments will also provide the legal grounds for those who failed to re-register to be able to broaden activities in Vietnam.

Accordingly, it is suggested that the re-registration deadline defined in Article 2 should be removed so that enterprises feel free to make the registration or not at their convenience.

A majority of the National Assembly’s  Economic Commission agreed with the revision as proposed by the government. They also suggested that extension of activities should only be allowed for enterprises that do business in line with the government's policies on foreign investment firms.

Also at the sitting, deputies debated the 2011 State budget. They asked to clarify the efficiency of budget spending, especially public investment in capital construction.

On May 24, the National Assembly approved Nguyen Huu Van, a 57-year-old economist, as the new General Auditor.