A draft law amending the 2006 Cinematography Law has been recently unveiled by the Ministry of Culture, Sports and Tourism for public opinions before it is submitted to the National Assembly for passage at its May session.
One of the most important amendments proposed in the draft law concerns the establishment of film production enterprises. While the current Law does not allow foreign organizations and individuals to set up and manage film production enterprises, the draft law switches on a green light to the setting up of joint ventures with the proportion of foreign investors’ capital accounting for up to 51% of charter capital.
While giving more room for foreign investment in film production, the draft law is stricter with film distributors. Although the establishment of film distribution enterprises with 100% foreign capital is permitted under the 2006 Law, the draft law proposes reduction of the level of foreign capital in these enterprises to merely 51%.
To protect the domestic movie industry, the current Cinematography Law imposes several restrictions on the import of films. Accordingly, distribution enterprises wishing to import films must have cinemas for film screening. The number of films imported by film production enterprises or television stations must not exceed twice that of films produced by themselves.
With a view to complying with Vietnam’s WTO commitments, the draft law lifts film import quotas. However, it tightens conditions on film importers, disallowing film production enterprises without cinemas to import films.-