View of arbitrators

HCM City’s new policies to boost competitiveness

19/12/2017 16:51


HCM City by night. The city is set to create a more friendly and competitive business environment following a recent National Assembly resolution on piloting special policies for the city.
HCM City by night. The city is set to create a more friendly and competitive business environment following a recent National Assembly resolution on piloting special policies for the city.HCM City is set to create a more friendly and competitive business environment following a recent National Assembly resolution on piloting special policies for the city. Speaking at a meeting held in the city on Monday, Nguyễn Thành Phong, chairman of the city People’s Committee, said the city was committed to carrying out the resolution to enhance socio-economic development. 
Võ Văn Hoan, chief of the HCM City People’s Committee Office, said that a number of plans should be implemented immediately. 
Hoan asked agencies to conduct studies on decentralisation; revenue use from equitisation of state companies; payroll reform; and capital mobilisation, especially tax and fee increases or supplementation. 
Some types of taxes and fees will be applicable within five or 10 years, even though they are not feasible now, according to Hoan. 
The resolution approved by the National Assembly on piloting special mechanisms and policies for the development of the city will take effect on January 15. 
Under the resolution, HCM City will be able to strengthen resources and create new driving forces for development. 
The special policy devolves power to the city to make decisions on issues that are now made by the Prime Minister, including land administration; investment; finance/budget; delegation of power to lower levels of administration; and salaries of officials, public employees and civil servants. 
With regard to land administration, the People’s Council will be allowed to decide if rice-growing lands of at least 10 hectares can be used for other purposes. 
The council will also make decisions on major public projects, except those related to special national relics and defence and national security, based on the Public Investment Law. 
It will have the authority to increase certain fees, receive 50 per cent of the money from the sale of State agencies’ properties in the city, and retain all the money raised from the equitisation of city-owned enterprises. 
It will also be able to increase salaries of government workers up to 1.8 times. 
Hoan proposed completing certain projects by March 2018 for the city People’s Committee to approve and submit to the city’s Party Committee and People’s Council. 
Dr Trần Hoàng Ngân, director of the HCM City Cadre Academy, said the National Assembly resolution targeted problems facing the city, such as traffic congestion, flooding, climate change and pollution. 
The city should also conduct decentralisation and authorisation issues as soon as possible, he added. 
Dr. Trần Du Lịch, Vice president of Vietnam International Arbitration Centre (VIAC) said the city would face challenges implementing the special policies over the next five years. 
Lịch recommended that the city study and evaluate the positive and negative impacts of tax or fee hikes. Imposing special consumption taxes on wine, beer, cigarettes and petrol or increasing the automobile registration fee must be carefully considered, he said. 
For example, if the city increases the auto fee, residents might register their cars in other localities and take them to HCM City for use. 
“It does not necessarily mean that a tax hike will increase budget revenue or that a tax cut will reduce State budget revenue,” he said. 
Dr. Huỳnh Thế Du from Fulbright Việt Nam University said the special pilot policies were created to enhance competitiveness, job creation, budget revenue, and gross regional domestic product. 
Du recommended that city authorities improve the business climate to attract more investment, and noted that tax and fee policies must ensure fairness and be properly collected. 
By Viet Nam News
Share Post
  • Burning question: Uber and Grab’s legal status 04/01/2018 09:45

    Emboldened by the ECJ's decision, Vietnamese lawyers call to re-label Uber and Grab Europe's top court ruled that Uber should be regulated as a transportation company and not a tech firm, forcing it to comply with national regulations that it has previously been able to ignore. The decision came only a day after the company was accused at a London court of becoming a menace to public safety by forcing its drivers to work exhausting hours.

  • Experts warn Vietnamese investors of bitcoin bubble 26/12/2017 08:50

    Investors of bitcoin in particular and cryptocurrencies in general should be aware of the possible risks involved in addition to rapidly increasing profits, experts have warned.

  • Vietnam – Real Estate Sector – Current Issues and Solutions for Investment and Outlook on Major Trade Deals TPP 11 and EUVNFTA 20/12/2017 09:35

    The provisions of the mentioned regulations have brought more investment in the real estate market to Vietnam. They have reduced barriers for investment and widened accessibility to properties in Vietnam.

  • Policy changes pose obstacles for foreign investors 14/12/2017 14:49

    Although foreign direct investment (FDI) has played an important role in boosting Việt Nam’s economic growth, recent changes in policies and regulations, which are not consistent with international best practices, have exposed many foreign investors to considerable risks and obstacles in executing their investments.

  • Should Foreign Pharma in Vietnam Start Incorporation? 14/12/2017 10:39

    Under previous laws, foreign pharma representative offices (“ROs”) in Vietnam were allowed to employ medical representatives. Presently, Article 76.6(b) of the Law Pharmacy No. 105/2016/QH13 (“2016 Pharma Law”) disallows ROs from employing medical representatives and unless the government reverses the situation, this rule will to stand. 

  • Enterprises have to create barriers protect IPRs by themselves 12/12/2017 14:37

    For the IP registration of businesses, Mr. Tran Manh Hung, IP expert, VIAC arbitrator, and lawyer of Baker & Mckenzie Company in Vietnam, said that registration of procedures to establish the trademark with simple procedures, low cost but have not yet been paid attention by enterprises, especially for start-up businesses. This was the difference between domestic enterprises and foreign enterprises to start investing in Vietnam.

  • APEC Vietnam 2017 30/11/2017 16:58

    “Asia – Pacific economic cooperation (APEC) plays a meaningful role in the Pacific’s joint economic development. APEC, currently having 24 members, represents nearly 40% of the world’s population, 57% of the world’s gross domestic product (GDP) amd 50% of world trade. APEC Vietnam 2017 positively influences Vietnam’s production efficiency, business activities and investors with the level of influences defending on the host Vietnam’s ability. At least up to now, that ability is highly apreciated by APEC and it, when realized, will make the influence more clear.”

  • Government advised to re-define public debt 25/10/2017 09:57

    The World Bank and the International Monetary Fund define public debt as debt liabilities of the public sector including the central government, local administrations, central banks, organisations guaranteed by the State, State enterprises and funds that the Government has committed to pay such as pensions and insurance.