Tuesday, December 10 2019

VietNamNews

Regulations needed to support household businesses

Update: February, 21/2019 - 08:00
Customers buy goods at a household grocery store in Hà Nội. The amendments to enterprise and investment laws should include measures to boost the development of household businesses. — VNS Photo Đoàn Tùng
Viet Nam News

HÀ NỘI – The amendments to enterprise and investment laws should be aimed at promoting the development of the private sector, a conference held in Hà Nội was told on Wednesday.

Organised by the Việt Nam Chamber of Commerce and Industry (VCCI), the conference aimed to collect opinions about plans to amend the Law on Investment and the Law on Enterprise being compiled by the Ministry of Planning and Investment.

VCCI’s Chairman Vũ Tiến Lộc said it was critical to create the legal framework for business households to promote their development.

Lộc cited statistics showing there were nearly five millions business households in Việt Nam who contributed more than 30 per cent of the country’s gross domestic product (GDP). However, the existing policy framework for business households is inadequate and there was a lack of equalities between business households and official enterprises.

Lộc added that many existing policies made business households reluctant to transform into enterprises.

“The amendments to the Law on Enterprise should take into account effective solutions to transform business households into enterprises in an effort to promote the development of the private sector,” Lộc stressed.

“Why are business households which use hundreds of workers each not regarded as enterprises? Their nature is enterprise, in fact. Not recognising business households as enterprises could be the largest bottleneck of the Việt Nam’s business legal system,” Lộc said.

Lộc said the amendments to the law should regulate business households to be a type of enterprise while creating favourable conditions, especially in tax and accounting policies for small and micro businesses at the same time.

Deputy Minister of Planning and Investment Vũ Đại Thắng said the ministry would take into account VCCI’s recommendations, admitting that the current  policies of encouraging businesses households to transform into enterprises did not bring about expected results.

According to lawyer Lê Văn Hà from Pathlaw law firm said it was necessary to recognise their legal status and develop a policy framework for their development.

Lộc also said that the procedure for registering a business needed to be simplified further, adding that Việt Nam’s ranking in market entry by the World Bank remained low.

Regarding the Law on Investment, Lộc said the amendments should focus on effectively deregulating business prerequisites.

Nguyễn Văn Toàn, Deputy Chairman of the Việt Nam Association of Foreign-Invested Enterprises, said that investment regulations needed a breakthrough to attract investors who owned high technology companies and promote the links between domestic firms and foreign-invested companies.

The Ministry of Planning and Investment on Saturday published the draft amendments on its e-portal for public comments.

It said that the goal of amending the two aforesaid laws was to create advantageous, transparent, fair, safe and friendly investment and business environment for every citizens, enterprises and at the same time improve the State management efficiency on doing business activities. - VNS

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