>>Some key points of Vietnam’s new Investment Law
The Official Gazette issues Nos. 85-90 of 2020 have recently come out with the most significant document being the full-text English translation of the new Law on Investment.
Taking effect from the beginning of 2021, the Law, coded 61/2020/QH14, is expected to ensure the exercise of the right to business freedom of people and enterprises and at the same time remedy existing problems and create more favorable conditions for investment, production and business activities.
The new Law removes dozens of sectors and trades from the list of those subject to conditional business investment, including services provided by commercial arbitration organizations, commercial franchise, logistics services, ocean shipping agencies, real estate brokerage training services, assisted reproductive services, vaccination services, and plastic surgery services, among others. Meanwhile, the provision of debt collection services is added to the list of sectors and trades banned from business investment.
Noteworthily, the Law introduces a list of sectors and trades in which foreign investors are subject to market access conditions formulated by the negative approach with a view to improving transparency and feasibility in implementation of Vietnam’s market opening commitments under new-generation FTAs. The Law also adds provisions on sectors and trades banned from offshore investment and sectors and trades subject to conditional offshore investment.
Regarding investment incentives, in order to create a legal framework attractive enough to lure the fast-moving flow of FDI capital, the Law empowers the Prime Minister to decide to apply special incentives to investment projects in some certain cases. The Law also added new types of incentive, i.e., accelerated depreciation and increase of deductible expenses when calculating taxable incomes.- (VLLF)