Changes under the new laws are more readily felt by foreign investors, who can now engage in any business activity that is not classified as off limits by the new laws. Before that, they were licensed on a case-by-case basis and could only operate as far as their licences permitted.

Domestic entrepreneurs have enjoyed that right since 2000, when the former Enterprise Law fostered the birth of thousands of companies overnight.

Nguyen Dinh Cung, one of the authors of the new Enterprise Law, however, warned against expecting a boom in foreign investment. He said not all foreign investors liked the change, because they would be envious of the newcomers who would not have to go through the same trouble they did in order to get their investment licences, especially in protected industries.

But one surprise is that a much-awaited decree guiding the implementation of the Investment Law has not been promulgated.

Therefore, foreign investors might find it easy to set up their companies here but then must wait before they can have their projects screened or registered. This period is also confusing for local companies with foreign shareholders, because the old regulations are no longer valid and the new ones not yet ready.

The government is expected to announce temporary measures, applying current regulations that govern local companies, minus incentives.

On the other hand, there are provisions under the Investment Law that overlap other laws on a wide range of subjects, such as land, credit, import-export, advertising, taxation and environmental protection. It is not clear which law(s) would dominate in case of inconsistency.

Nguyen Van Cam

 Viet Nam News/

 Asia News Network