return icon Vietnamnet.vn

Law on Enterprises needs greater reforms

Vietnam must continue to improve on its Law on Enterprises, experts and researchers said at a law conference in Hanoi yesterday.

{keywords}
The Fuji Electric Vietnam Company's production line in Dong Van III Industrial Park, Duy Tien District, Ha Nam Province. Vietnam needs to improve its Law on Enterprises. VNA/VNS Photo Nguyen Chinh

The business code, since its formation in 1999 and two major reforms in 2005 and 2014, still has numerous shortcomings and limitations, according to the experts.

Compliance costs – expenses incurred to keep up with industry regulations – remained high. Notably, decreases in compliance, if any, were often results of Government directives or reform programmes when what the country desperately needs is a framework to reduce such costs systematically, said Dr Nguyen Dinh Cung, former head of the Central Institute for Economic Management (CIEM) and member of the Economic Council under the Prime Minister.

Ministries and agencies tend to over-regulate the business sector, especially firms specialised in legal services, finance and banking. Technical barriers often proved to be significant hurdles to starting operations in such fields. Level of policy risk and legal complication remained high. Businesses often found themselves without reliable means to protect their legitimate interests, said CIEM’s former head.

Ministries were slow to push for legal reforms thanks to both red tape and a lack of incentives.

“One cannot expect changes to come from within the ministries. If what we are hoping for are swift legal reforms we must find the strength to push for them in the private sector,” said Cung.

On the other hand, according to Cung, the law has been getting more lax when it comes to State-owned-enterprises (SoEs). Regulatory oversights and poor law-enforcement have resulted in many SoEs being unable to establish an efficient management framework or fail to adhere to good management practices.

Pham Duc Trung, head researcher of CIEM’s business reform and development, said the country has been struggling with the implementation of the Organisation for Economic Co-operation and Development (OECD) 39 principles for corporate governance as a standard for business management.

For example, the State has yet to define its strategy and function in many SoEs even after the formation of the Committee for Management of State Capital at Enterprises – a central body responsible for the management of a massive amount of assets owned by the State in SoEs.

A lack of autonomy has resulted in SoEs being unable to adopt modern management standards because SoEs cannot make important decisions without approval from the State, Trung said.

Trung called for greater autonomy be granted to SoEs along with accountability for their performance. The State must build a system of performance criteria for SoEs to follow and they must be made to publicise financial information and their management board selection.

Revised Law on Enterprises to add household business regulations

Revised Law on Enterprises to add household business regulations

Vietnam has considered adding regulations of household business to the revised Law on Enterprises that is set to be submitted to the National Assembly for approval in October.

VNS

MORE NEWS

Vietnam to attend ASEAN Tourism Forum 2023 in Indonesia

Vietnam will participate in ASEAN Tourism Forum (ATF) 2023 themed “ASEAN: A Journey to Wonderful Destinations”, and the Travel Exchange (TRAVEX) trade fair in Yogyakarta, Indonesia from February 2 – 5.

Hanoi and Ho Chi Minh City among safest cities in Southeast Asia

Hanoi and Ho Chi Minh City have both been included in a list of the safest cities in Southeast Asia, as compiled by statistics site Numbeo.

Action plan issued to accelerate national anti-corruption strategy building

Deputy Prime Minister Le Minh Khai, head of the steering committee on building the national anti-corruption strategy by 2030, has signed a decision on the issuance of the committee’s action plan.

VIETNAM BUSINESS NEWS JANUARY 31/2023

Latest guidance on one-way money transfers from Viet Nam

HCM City proposes removing hindrances to develop real estate market

Ho Chi Minh City authorities made a proposal to clear bottlenecks for healthy and sustainable development of the real estate market.

More high-value foreign investment projects needed as tax policies change

Vietnam needs to improve FDI quality, attracting high-tech projects that promise to bring higher added value.

Khmer's ginger cake of love and faithfulness

The ginger cake of the Khmer ethnic group in Soc Trang Province is a beloved traditional treat that is often offered to ancestors on important anniversaries such as the Tet (Lunar New Year) festival.

HCM City promotes digital transformation in education

Digital transformation is considered key to improving education and training quality, as proven by the effect of HCM City actively applying digital transformation over the past five years.

Hanoi to close fruit shops lacking proper food safety preparations

The capital city of Hanoi encourages the expansion of safe fruit businesses while clamping down on fruit shops that do not comply with food safety protocols, specifically street vendors.

Dutch diplomat donates Vietnamese paintings to national museum

Vietnam National Fine Arts Museum has received two paintings from former deputy ambassador Ellen Berends of the Netherlands to Vietnam.

Hanoi's unique rice cooking contest in photos

On the 8th day of the first lunar month each year (January 29, 2023), Thi Cam village in Hanoi’s Nam Tu Liem district holds a rice cooking contest.

Hanoi proceeds with park revitalization program

The implementation of Hanoi leaders’ promise to revive parks has begun: admission to Thong Nhat Park is now free after the removal of the fence, and Con Coc Flower Garden has a new look. However, there are still many things that need to be done.

Vietnamese farmers on board the ‘digital agriculture train’

In the digital era, next-generation farmers can fertilize and water their fields in Binh Phuoc from afar, even in a different country.

Vietnam forecast to become second-largest economy in Southeast Asia by 2036

2023 is predicted to be the year of many challenges for the Vietnamese economy due to the gloomy outlook of the global economy and multiple crises.

Prenn Pass leading to Dalat to be closed for expansion

Vehicles will be banned from using the seven-kilometer-long Prenn Pass to travel to Dalat City as work on the pass upgrade and widening project begins on February 6.
back_to_top