Untangling The Web Of Establishing Enterprises In Vietnam

The unification of multiple laws under the Law on Enterprises 2005 along with the enactment of the Law on Investment within the same year represented a significant advancement for Vietnam in terms of establishing standardized legal regulations that apply to the business sector and showed Vietnam’s non-discriminatory treatments towards investors. However, regardless of such accomplishments, Vietnam’s incorporation of enterprises remained an untangled web of contradictions.

As these inadequacies have caused some serious issues for enterprises, and that our Article analyzes such contradictions in detail and afterward brings forward some recommendations through (i) pointing out the inconsistencies between Decree 139/2007/NDCP and Official Letter No. 1752/BKH-PC; (ii) specifying the confusions brought about by Decree 102/2010/ND-CP, and (iii) highlighting the conflicts of Decree 102/2010/ND-CP with the Law on Investment.

Additionally, the Article brings out some examples of other countries whose investment regulations are consistent and friendly towards investors regardless of their citizenship status. Finally, the Article concludes that it is necessary for Vietnam’s government to prioritize improving the investment environment that embraces all kinds of investors. Specifically, Vietnam’s ministries and governmental bodies should make efforts to refrain from bringing about further “patchwork” solutions and amend the Law on Enterprise and Law on Investment in an effective manner to make Vietnam an attractive destination for investors all over the world. 

The full PDF version of our Article can be read here.

Keywords: mining operations; bauxite mining; environment; environmental impacts, Law on Environmental Protection, the Law on Chemicals, the Mineral Law.