Legislators urge adjustments to Investment Law

Workers at the Kinh Bac textile and garment factory in northern Bac Ninh Province. The industry will play an important role in the National Assembly's resolution to achieve export turnover growth of 10 per cent, creating a trade surplus of about 5 per cent in 2015. - VNA/VNS Photo Tran Viet

At the ongoing eighth session of the 13th National Assembly, they spoke highly of the draft amendments, saying they would help refine mechanisms, policies and administrative procedures for investments.

They believed that this would create a clear, open and transparent environment for investors.

However, they pointed out a number of overlaps in the list of prohibited investment areas, adding that they also included non-business activities, such as trade arbitration.

They therefore proposed a careful review of the list and subsequent adjustments.

According to the Minister of Planning and Investment, Bui Quang Vinh, the bill is a new approach to law making since it explicitly lists prohibited business activities in the law, which means that all non-listed business activities are legal.

Regarding investment incentives for agriculture and rural areas, some legislators suggested specific regulations on investment incentives since they were now stipulated in different legal documents, causing difficulties for investors.

They disagreed with a regulation on incentives for agricultural projects with 500 workers or more, explaining that a 300-strong workforce was already suitable.

In the afternoon, the NA ratified a resolution on a socio-economic development plan for 2015 with 89.54 per cent of votes.

A number of socio-economic criteria referred to in the resolution included a gross domestic product (GDP) growth rate of 6.2 per cent, a total export turnover growth rate of 10 per cent, a trade surplus of about 5 per cent, a consumer price index (CPI) rise of 5 per cent, and social-development investment capital accounting for 30-32 per cent of GDP.

It is also hoped to reduce the proportion of poor households by 1.7-2 per cent, create 1.6 million jobs, slash unemployment in urban areas to less than 4 per cent, and to cut the ratio of malnourished children under five to below 15 per cent and make sure the number hospital beds per 10,000 inhabitants (excluding beds at communal medical stations) is 23.5.

On the same afternoon, law makers also approved the State budget estimates for 2015 and discussed draft revised Law on Enterprise.

Under the budget estimates for 2015, the total budget collection will reach VND921,100 trillion (US$43.85 billion) and the total budget spending will reach VND1,147.1 trillion ($54.61 billion) and the budget overspending will mount to VND226 trillion or equivalent to 5 per cent of the country's GDP.