" Businesses could themselves decide the number and content of stamps. This was considered as a big breakthrough to facilitate enterprises in their operation" said Bui Quang Vinh, Minister of Planning and Investment. — Photo vtv

HA NOI (Biz Hub) — Businesses would still need stamps to carry out certain legal documentation formalities since several laws and regulations do require use of stamps.

Responding to questions regarding the 2014 revised Enterprise and Investment Laws, that became effective on July 1, Bui Quang Vinh, Minister of Planning and Investment, said enterprises needed time to fully understand the new documents and firms and their partners, as well as state management agencies, would feel insecure if there were no stamps on a contract or document.

Vinh told the People Ask, Minister Answers programme on VTV1 on Sunday that the law aimed to remove the requirement of a stamp in keeping with the international norms. Businesses could themselves decide the number and content of stamps. This was considered as a big breakthrough to facilitate enterprises in their operation.

The minister also said the application for establishing a firm still asks for clarification about the company owner's detailed information as well as initial business lines as these were related to tax code.

"In the developed countries, enterprises are also asked to declare business code," he said, adding that the code would help management agencies, both inside and outside the country, to know the firms' operating field.

Answering issues that business registration cases under the new law remained limited due to lack of specific guidelines, he said a series of guidelines would be promulgated in the next few days.

"The ministry has issued specific instructions to businesses and agencies while waiting for the guidelines," he added.

The minister noted that businesses were now taking only three days to register ever since the law took effect.

In the first 50 days after the new law came into effect, the country saw more than 13,000 newly established firms, posting 73 per cent year-on-year increase.

Minister of Planning and Investment, Bui Quang Vinh. — Photo nguoiduatin

"The surge in the number of new firms has been thanks to economic recovery, stable macro economy and also because procedures for establishment have become more transparent and stable."

Foreign companies welcomed the new laws. However, they have been worried as they need to apply for two licences for investment and business registration instead of a single one. They wondered whether the new regulation could cause more trouble.

The minister said the two licences used to be combined together but were granted by two different agencies.

The grant of business registration was simple and it was issued by the provincial departments of planning and investment. The investment licence was issued by the departments or management boards at industrial parks or processing zones or even the chairman of People's Committee in case of big projects. Some projects were even decided by the National Assembly and Prime Minister.

That was the reason that the two licences were not put together. The separation would help shorten the time required as the business registration grant would take only three days while the other licence process takes 15 days. Businesses used to take 52 days for the two licences earlier.

These are two laws still awaited by the business community.

Many provisions binding upon or impeding the enterprises' investment and business have been excluded from the 2014 Enterprise Law. A lot of people expect that the 2014 Enterprise and Investment Laws will create a good business environment and help the business community develop strongly.

The amended laws allow businesses to expand their activities as long as what they do is not illegal. Earlier, companies in Viet Nam had to exactly specify their business activities in their business licence.

The list of illegal business activities has also been shortened from 51 to 6, including wildlife trading, human trafficking and sex services.

The General Statistics Office reported that 9,301 new businesses were established across the country in August, with a total capital of VND55.2 trillion (US$2.46 billion), up around 41 per cent from the previous month.

That means more than 300 businesses were being launched in Viet Nam every day.

The number of new businesses increased 84 per cent, with the registered capital rising by 102.4 per cent over the same period last year.

The office also reported a 66.2 per cent year-on-year increase in the number of new businesses in July, when the amended Business and Investment Laws took effect.

Tran Thi Hong Minh, an official from the ministry, said the figures showed that the new laws had been well received by the business community and were having a positive impact on the business environment.

Statistics also showed that 7,595 businesses suspended their operation in August, up 28 per cent from the previous month, and 834 businesses shut down, 11.5 per cent more, during the same time. — VNS