Vietnam Mulls Regulatory Changes To Ease Market Access For Foreign Business

Hanoi Vietnam
A man carries paper replica of a car to be sold for the Vu Lan Festival celebrating festival of the hungry ghosts by offering a daily items for spirits to use in the afterlife, at Dong Ho village, outside Hanoi, Vietnam, August 13, 2019. (Photo: REUTERS/Kham)

Vietnam announced on Wednesday the long-anticipated changes to its regulations for foreign investors who want to penetrate the Vietnamese market.

The revisions are expected to ease market access restrictions to foreign businesses if the amendments are approved by lawmakers.

According to the Haoni Times, the draft of the Vietnamese Law on Investment will be discussed next month during the National Assembly's eight session and is expected to help foreign investors in their applications for business in the country.

In line with easing up on foreign investments, Vietnam will also provide a list of businesses that foreign business owners can explore, as well as another list of fully-restricted segments, and finally, a list of sectors they can take part in on certain limitations.

During the October conference, the lists will be revamped based on domestic and international laws regarding investments to ensure that market access will still be in line with global regulations.

Upon approval, industry analysts are expecting to see more business owners showing interest in the country, especially as the ongoing trade war between China and the U.S. is not expected to end very soon.

Vietnam has been working on revamping its policies for foreign investors as countries escaping tariffs from the China-U.S. trade war seek shelter in the country. Most investors said they are looking at doing business in the country due to cheaper labor costs.

If the draft bill is approved, existing investment incentives will be extended and new investment incentives will be decided on to further attract interested investors.

Deputy Minister of Planning and Investment, Vu Dai Thang, said the changes to the Law on Investment 2014 will also put into official writing the recent resolutions that the government agreed on for foreign direct investments (FDI).

Earlier this week, the Foreign Investment Agency said that from the period of January to August, Vietnam saw an annual increase of seven percent in FDI disbursements, with almost $12 billion for the said period.

According to Vietnam Plus, a total of $22.6 billion was recorded in investments from foreign investors. The numbers accounted for over 2,400 FDI projects that Vietnam granted licensing.

The investments saw a massive 25 percent increase in terms of number of projects related to FDIs. Analysts are expecting to see the numbers growing as Vietnam opens up further to investors.

Vietnam is said to be one of the major Asian countries that has been benefiting from the China-U.S. trade war. It has been experiencing increased interest from companies around the world, and it continues to revamp policies that previously restricted investments.

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