From PM’s New Year Message to Law on Enterprises
14:48 | 27/02/2014
VGP – In a bid to realize the guideline of the Prime Minister’s 2014 New Year Message, inferior levels are working to collect comments on the amendments to the current Law on Enterprises.

Illustration photo

The new law is expected to remove the “bottle-necks” for businesses, especially the registration of business lines.

Under the draft version, ministries, ministerial-level agencies, provincial People’s Councils and Committees are not allowed to issue regulations on business lines that are prohibited or conditional as well as regulations on business conditions.

Enterprises may not have to register business lines, according to the amendments.

Many experts and business leaders said the new provision on business registration is a strategic breakthrough in facilitating the start-up and operations of enterprises.

The current Law on Enterprises only allows enterprises to operate in areas that are not restricted by law but the notion “law” is so immense. It means that enterprises have to overcome the burden of administrative procedures.

On the other hands, the current law stipulates that enterprises have to operate in accordance with the business lines that they have registered.

Under the amendments, the right to issue regulations on business prohibition and conditional business belongs to the National Assembly, the National Assembly Standing Committee, and the Government. No other agencies have such right.

Enterprises can expand business lines and they only need to report the change to the business registration agency.

Some warns that the above amendments would make it difficult for the State management. However, as written in the PM’s New Year Message, the State should function as the development facilitator meanwhile State organs and cadres and civil servants can only do things that law allows.

Under this spirit, the draft version reflects the State’s effort to create further favorable conditions for citizens and enterprises.

In a broader view, the draft versions of the Law on Enterprises and the Law on Investment are part of the institutional reform process which is considered as an inevitable requirement.

PM Nguyen Tan Dung pointed out that over the past 30 years of renewal, the country’s outstanding achievements have close relations with institutional reform process and now it is time to refresh this process to generate greater impetus for fast growth and sustainable development./.

By Hai Minh

  Reader opinion
Turn off Vietnamese typing Automatic typing Telex VNI VIQR  
Fullname Email address