On June 17th ,2020, The National Assembly has ratified the Law on Investment No. 61/2020/QH14 to replace the Law on Investment 2014. Thereby, Law on Enterprises 2020 has the following notable changes:
- Removing many business lines subjected to the conditional investment; including some business lines such as: Logistic services; Shipping agency services; Provision of training in real estate brokerage, real estate valuation, and operation of real estate exchanges; …. shall become business lines with non-conditional investment from the date that the Law on Enterprises 2020 takes effect;
- Supplement 02 project groups which are not allowed to implement investment project, details are as follows:
- Investment projects using outdated technology with the potential of causing environmental pollution, resource-intensive;
- Investment project that the investor must transfer without compensation to the Vietnamese State or Vietnamese party.
- Removing the regulations on the extension of project schedule in the Law on Investment 2014, in order to unify the procedure of adjusting the investment projects schedule in as regulated in the Law on Investment 2020;
- Amending the regulations on cases that have to carry out the procedures on making capital contribution, buying shares or capital contributions to a business organization in the following cases:
- By making capital contribution, buying shares or capital contributions increase the contribution ratio of the investor in the business organization which operate in conditional market access business lines for foreign investors;
- By making capital contribution, buying shares or capital contributions, the foreign investors, the business organization as prescribed in Point a, b and c Article 23 of this Law shall hold more than 50% of the charter capital of the business organization in the following cases: increasing the contribution ratio of charter capital of foreign investors from below or equal to 50% to over 50%; increasing the contribution ratio of charter capital of foreign investors when foreign investors have already held more than 50% of charter capital in the business organization;
- The foreign investors make capital contribution, buy shares or capital contributions of the business organization with the Certificate of land use right in the island and border communes, wards and towns; coastal communes, wards and towns; other areas that have the impact to national defense and security.
Law on Investment 2020 shall take effect on January 1st ,2021.
