VietNamNet Bridge – Continuing the fifth sitting of the 13th National Assembly, deputies on Saturday examined the draft amendments to the Enterprise Law, as well as a proposal asking for NA approval of the State budget balance for 2011 and several other issues.

Minister of Planning and Investment Bui Quang Vinh. (Photo: VNN)

According to a Government report presented by Minister of Planning and Investment Bui Quang Vinh, Clause 2 under Article 170 of the 2005 Enterprise Law prescribes that foreign invested firms operating under the Foreign Investment Law in Viet Nam can either re-register for operations and management in accordance with the Enterprise Law or decide not to re- register.

Those who decide not to renew their registration will see their business operation limited to the activities specified in their investment licences.

Statistics show that by July 1, 2011, the deadline for re-registration, about 3,000 out of 6,000 FDI enterprises were yet to re-register. Of these, some have seen their licences expire but want to continue their operations while others with valid licences want to extend operations to other business fields.

Therefore, the government proposed amendments to Article 170 of the Enterprise Law to allow FDI businesses to maintain their operations, especially those which enjoy stable production, create stable jobs for local workers and contribute to social welfare and the state budget.

The amendments will also provide a legal framework for those who fail to re-register to be able to broaden their activities in Viet Nam.

Accordingly, it is suggested that the re-registration deadline defined in Article 2 should be removed so that enterprises feel free to register at their convenience.

A majority of the NA's Economic Commission agreed with the revision as proposed by the Government. They also suggested that extensions on activities should only be allowed for enterprises that do business in line with the Government's policies on foreign-invested firms.

Also at the meeting, deputies also asked to clarify the efficiency of budget spending, especially public investment in capital construction.

Previously, on Friday, the National Assembly approved Nguyen Huu Van, a 57-year-old economist, as the new General Auditor.

Source: VNS