Not to use the seal, shorten business procedures

Not to use the seal, shorten business procedures

Proceeding not to use the seal means there are provisions in the Enterprise Law with word "seal" will be crossed out. Thus, all seal registration procedures will be cut-off.

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Like Mr. Phan Duc Hieu's opinion - Deputy head of CIEM, at the seminar "Recommendations on the draft law revising laws on investment and business: proposed business conditions" (CIEM) held under the Australian Support for Economic Reform Program (Aus4Reform Program) on 9 November 2018 in Hanoi.

Experts said at the seminar, after almost 3 years of implementation, Laws and guiding regulations have shown some difficulties and problems are inevitable,  due to the difference between Enterprise Law, Investment Law and other specialized laws. Hence, need for a fulfilled transformation of the legal instruments regulating investment and enterprises replace the Law on Investment and Law on Enterprises in  2014.

For the draft of the amended Law on Enterprises, according to Phan Duc Hieu, deputy director of the Central Institute for Economic Management (CIEM), It’s necessary to revise and add some practical and important contents aim to simplify procedures, create favorable conditions for enterprises to enter the market. "If not modified, the existing shortcomings will have a negative impact on the implementation of the policy to improve the business investment environment under Resolution No.19 of the Government," Mr.Hieu said.

Cancelling the seal is one of the most emphasised content and a big step in the revised Enterprise Law at this time. The World Bank said that businesses should not waste time on outdated and unnecessary procedure such as company seal.

World Bank data has shown that making a company seal costs time and money. In Vietnam is after 6 working days;  20 working days in Laos and a month in African countries. Not necessary to use the seal for E-Business Development.

Opinions on the revision of the Investment Law 2014, Quach Ngoc Tuan, Deputy director of Department of Legislation, Ministry of Planning and Investment, said the government had agreed on the objectives viewpoints and scope of amendments and supplements of the draft law on Enterprise, and directing Admisnistor to coordinate with the concerned agencies, Vietnam Chamber of Commerce and Industry and the business associations shall continue to review the amended contents, to supplement the Law Project to ensure the feasibility and solving problems and obstacles to investment and business activities and satisfy the requirements of State management, and  contemporaneous evaluate and explain about a certain conditional business line.

The current conditional business category has 243 industries and 7 industries prohibited business investment. Mr. Tuan also commented that  reviewing and evaluating on the list of sectors and trades to sort out unnecessary ones, and adding new ones meet certain conditions.

The current admended provisions aims to centralize and organize the implementation of major tasks to improve the business environment, raise the competitiveness, approach to the targets in the Resolution No.19-2018 including: consolidating and sustaining the results achieved in business start-up, protecting investors and striving to increase levels on all indicators, further reforming regulations on business conditions; To simplify and abolish administrative procedures which are no longer suitable and create favorable conditions for individuals, organizations and enterprises to approach and carry out administrative procedures. To creat a favorable, stable, creative and free environment for enterprises.