11:25 | 05/01/2016 Investment
(VEN) - The government has responded to a number of proposals made by the business community on improving the business environment at the 2015 Vietnam Business Forum (VBF 2015).
Apart from positive comments on the business environment, many businesses raised evidence of significant barriers in the Vietnamese investment environment and offered proposals to improve the situation. These included proposals related to the implementation of the Enterprise Law, the amended Investment Law, the Excise Tax Law on automobiles and the existing regulations on extra working hours.
According to VBF 2015 Investment and Trade Working Group representative Tran Anh Duc, the Enterprise Law and the amended Investment Law which took effect in July 2015 have helped businesses. However, several authorities have still applied the old licensing procedures causing problems for businesses. Tran Anh Duc recommended that agencies quickly issue regulations to restrict consultation to better facilitate businesses.
The VBF 2015 Automobile Working Group representative said Vietnam is preparing for comprehensive integration with the global economy and that the future of the Vietnamese automobile industry relies greatly on tax and fee policies including the Excise Tax. He suggested that the government reconsider the Excise Tax on several kinds of automobiles, while terminating the import tariff on automobile accessories and spare parts which cannot be made in Vietnam.
In terms of working extra hours, Article 106 of the 2012 Labor Code regulates that overtime must not exceed 50 percent of normal working hours daily, or 12 hours a day, or 30 hours per month, or 200 hours per year. In special cases, the government will fix the overtime which however must not exceed 300 hours per year.
Korea Chamber of Business in Vietnam Chairman Ryu Hang Ha said that the restrictions have greatly affected foreigners’ decisions to invest in Vietnam. He suggested that the government flexibly apply the regulations on extra working hours.
In response to the proposal from the Investment and Trade Workgroup, regarding the implementation of the Enterprise Law and the amended Investment Law, Planning and Investment Minister Bui Quang Vinh said that all six decrees and three circulars guiding the implementation of these laws have been completed and have become effective. In this light, problems in terms of the implementation of the laws will be resolved in the short term.
In response to the proposal from the Automobile Working Group, Deputy Minister of Industry and Trade Tran Tuan Anh said that his ministry will work with the Ministry of Finance to quickly make proper changes to facilitate investors. In terms of extra working hours, the Ministry of Labor, Invalids and Social Affairs representative said that they will ask the National Assembly for approval of increased extra working hours.
Attending VBF 2015, Deputy Prime Minister Vu Van Ninh spoke highly of the practical proposals and said that Vietnam would continue to attempt to resolve difficulties and improve the business environment for domestic and foreign investors. His speech received a positive response from the business community and went some way in underlining the government’s determination to further improve the business environment.
Deputy Prime Minister Vu Van Ninh: “The government is committed to work side-by-side with businesses, hear them and apply sound measures to protect their legitimate interests.”