Vietnam Set To Pass Law Revision To Attract More Investment

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Vietnam’s National Assembly is set to pass a revised Investment Law this month as the nation looks to improve business climate by creating a clear, open, and transparent environment for investors, according to a report on Friday from Vietnamese state-run news agency Việt Nam News.

Vietnam’s Deputy Director of the Ministry of Planning and Investment’s Legal Department, Quach Ngoc Tuan, said that the regulations on prohibited and conditional businesses were among the most important contents of the revised investment law, the report said.

The regulations – which strictly follow the Constitution that was adopted last year – sets out the principle that people have the right to do business in sectors that are not explicitly prohibited by law, according to the report.

The revised law will also provide clear regulations for economic organizations that use foreign investment capital, Tuan added.

Vietnam is also planning changes to its corporate tax policy, said Nguyen Van Phung, from the Tax Policy Department, according to the report.

Phung said that there would be 10% to 20% tax reductions for new investment projects, exemptions from taxes on personal income in addition to import and export tax reductions, according to the report.

In Vietnam, foreign direct investment (FDI) accounts for 22% to 25% of total investment capital, the report said, adding that this figure is increasing.

Last year, Vietnam’s FDI disbursement capital reached $11.5 billion and this year’s target is $12.5 billion, according to the report.

Source: Việt Nam News