Talking Law (17-05-2006) Should foreign firms re-register under new law? by Lawyers of VILAF - Hong Duc The uniform Enterprise Law and common Investment Law take effect on July 1 and will significantly change the business environment in Viet Nam. They replace the Law on Foreign Investment (LFI) which currently regulates the licensing and operation of foreign investment with a unified scheme that treats foreign and domestic enterprises more equally. There is much interest amongst the approximately 6,000 foreign-invested enterprises already operating in Viet Nam as to the advantages and drawbacks of re-registrating their enterprises under the new, unified scheme. A draft decree currently being circulated for comment is intended to guide these enterprises on the procedures for re-registration and to specify how enterprises that elect not to re-register will be treated after July 1. The unified Enterprise Law (UEL) provides that foreign-invested enterprises established before July 1 must … [Read more...] about Should foreign firms re-register under new law?
New laws passed
Talking Law (13-09-2006) New law imposes super-majority rule by Nguyen Dang Viet, BIZCONSULT The now-defunct Law on Enterprises of 1999 set out a simple majority vote rule of 51 per cent for passing the Board of Management (BOM) decisions in limited liability companies or shareholding companies. The new, uniform Law on Enterprises of 2005 increases this threshold to 65 per cent (Articles 52 and 104). Although intended to better protect the interests of minority shareholders, this super-majority rule is expected to make it harder for the BOM to make decisions and may produce deadlock in some companies. Article 52 of the 2005 Law on Enterprises stipulates that the BOM may pass resolutions if receiving the vote of BOM members representing at least65 per cent capital contribution of the attendees at the BOM meeting. The super-majority requirement increases to75 per cent when selling company assets equal to 50 per cent or more of the total company assets, amending the company's charter, or … [Read more...] about New law imposes super-majority rule
New law to levy environment tax on five groups of products By Van Nam - The Saigon Times Daily HCMC - Any enterprise or individual who exploits, produces or imports five groups of products classified as hazardous to the environment will be imposed with an environment tax in the coming time, according to the Draft Law on Environment Tax. Vu Van Truong, head of the Finance Ministry's Department of Tax Policy, told a seminar on contributing suggestions for the new draft law held here on Tuesday that if the law was passed and enforced by the National Assembly in October 2011, it would become effective on January 1, 2012. According to the draft law, the main products to be taxed are petrol, diesel oil, coal (except peat), HCFC substances, plastic bags (except biological bags), mosquito-repellent, chemicals for agricultural cultivation and decontaminating substances. According to the draft law, the environment tax is between VND1,000 and VND4,000 on each liter of petrol, between VND500 and … [Read more...] about New law to levy environment tax on five groups of products
New business licensing laws unveiled more than a year ago are being ignored by foreign companies. Only a fraction of the 6,000 foreign-invested companies have applied for fresh licenses after new business laws were passed in 2006 to meet the country's World Trade Organization (WTO) commitments. Workers at a foreign company specializing in home appliances products. Only 3 percent of Vietnam's 6,000 foreign enterprises have registered for new licenses … [Read more...] about Foreign firms balk at new laws
VietNamNet Bridge - The amended Law on Securities passed last year and taking effect this July 1 includes notable provisions which will help the nation's securities market develop more transparently and efficiently. New provisions cover private placement of securities, public offers, disclosure requirements, and professional operations of securities companies and fund management companies. The new law expands the definition of "issuing organisation" from "an organisation making a public issue of securities" to "an organisation making an issuance of securities", thereby including private placement of securities within the scope of the definition. … [Read more...] about New law increases transparency