After a lot of debate, Vietnam’s amended Investment Law, which has been passed, will be effective on 1 January 2021. Accordingly, debt collection services will be banned.
In the course of discussing the draft law, many people proposed to prohibit "debt collection service business". Some suggested not prohibiting the service by changing its name to "loan collection service business". However, after asking for opinions of National Assembly deputies, the National Assembly decided to ban collection service according to the opinion of the majority.
The Standing Committee said that investment incentives specified in Article 15 and Article 16 of the draft law are updated in accordance with the views, orientations and policies for the development of industries and localities of the Communist Party and the Government. Geographical areas eligible for investment incentives are determined based on the roles and conditions for socio-economic development of each region, including areas with difficult socio-economic conditions, areas with exceptionally difficult socio-economic conditions and areas with widespread spillover effects (industrial parks, hi-tech parks, economic zones).
Subjects and sectors eligible for investment incentives are mainly high-tech enterprises, innovative start-up projects, research and development centers, production of new materials, new energies, clean energies, information technology products, software, digital content, etc.
Receiving delegates’ opinions, the Standing Committee also removed the regulation in which the Prime Minister has the right to approve investment projects that have a great impact on socio-economic development (at Point c, Clause 2), because according to delegates, this provision is unclear about the criteria and projects eligible for special investment incentives and support prescribed at Points a and b of this Clause.
Regarding preferential investment levels, the ceiling of the special investment incentive in Clause 3, Article 20 is not specified. The amended Investment Law only specifies the preferential level and duration of special preferential treatment complying with the provisions of Corporate Income Tax Law and Land Law. Special investment incentives and supports specified in this Article only apply to new investment projects, not to investment projects that have been granted investment certificates, investment registration certificates or investment policy approvals before the effective date of this Law.
Ensuring national security and defense
In terms of national defense and security, it is suggested to specify the order and procedures for identifying and resolving projects suspended from business investment due to due to activities detrimental to national defense and security. According to the Standing Committee, the provisions of Clause 3, Article 5 are consistent with the Politburo's Resolution No. 50-NQ / TW in the direction of perfecting institutions, policies, and improving the quality and effectiveness of foreign investment cooperation, international experience and international treaties on investment to which Vietnam is a member.
In order to implement the above policy, many provisions on national defense and security which determine the deciding competence in each specific case have been added to the amended Investment Law. In particular, the Prime Minister has the authority to suspend a part or the whole of an investment project that harms or threatens national defense and security. Such provisions ensure national defense and security, at the same time limit administrative procedures, avoiding causing difficulties for investors. In addition, capital contribution, purchase of shares by foreign investors must meet the market access conditions for foreign investors and many other related laws.
Henry Tran - VietnamCredit