National Assembly Chairman: Amend the law in a way that does not create more pressure on businesses

National Assembly Chairman Tran Thanh Man - Photo: GIA HAN

On the afternoon of April 24, the National Assembly Standing Committee gave opinions on the draft Law amending and supplementing a number of articles of the Law on Enterprises.

Supplementing regulations to increase state management responsibility for enterprises

Presenting the report, Minister of Finance Nguyen Van Thang said the bill proposes to amend many regulations to remove obstacles in the process of implementing laws on enterprises.

The law strongly transforms digital business registration, through the use of personal identification and organizational identification to replace all traditional paperwork.

Regarding corporate governance, the bill amends a number of regulations to enhance the responsibility of agencies and localities in state management of enterprises.

In particular, post-auditing aims to minimize virtual capital and fake capital, and increase transparency in business operations.

To meet international commitments on anti-money laundering, the draft law amends and supplements 24 provisions on providing, storing and sharing information related to beneficial owners of enterprises.

New regulations and additions to this content do not create administrative procedures, reducing compliance costs for businesses.

During the review, Chairman of the Economic and Financial Committee Phan Van Mai said he requested the Government to report and clarify the impact of administrative procedures and compliance costs when the regulation adds the responsibility to declare information about beneficial owners when registering to establish a business and notifying changes to business registration contents.

The Standing Committee of the Committee agreed to add provisions on "beneficial owners of enterprises" to the Enterprise Law to implement the commitment of the Vietnamese Government, avoiding the risk of being blacklisted in anti-money laundering.

Among the specific contents related to private bond offering activities, the appraisal agency requested to clearly report the proposed basis and impact of the regulation on the condition of controlling "having payable debt (including the value of bonds expected to be issued) not exceeding 5 times the equity of the issuing organization" to report to the National Assembly.

The minimum requirement is to regularly amend and supplement the law.

Presenting her opinion at the meeting, Permanent Deputy Head of the People's Aspirations and Supervision Committee Le Thi Nga basically agreed with the revised and supplemented contents.

However, she suggested a very careful review to ensure the "lifespan" of the law, avoiding the situation where it has to be revised again right after it is amended.

Referring to the regulations on private bond offerings, Ms. Nga stated that the condition for issuing private bonds is that the enterprise's debt (including the value of the bond expected to be issued) does not exceed 5 times the issuer's equity, which will cause disadvantages for large enterprises, because these enterprises often have a larger debt ratio than small enterprises.

Meanwhile, before deciding to invest in corporate bonds, buyers need to research and take responsibility for their decisions.

Agreeing to submit the bill at the upcoming 9th session, National Assembly Chairman Tran Thanh Man proposed reviewing the amended Enterprise Law from 2020 to see if there are any problems in order to amend and supplement it appropriately.

Mr. Man noted that for private enterprises, it is encouraged to create favorable conditions for development, considering this an important driving force of the economy.

He pointed out that this amendment to the Enterprise Law is aimed at creating maximum convenience for business development, continuing to cut and simplify administrative procedures, and reducing business compliance costs.

He suggested designing reasonable regulations that do not create additional pressure on business operations. At the same time, in line with the spirit of innovation in law-making thinking, issues under the National Assembly should be submitted to the National Assembly, while issues under the Government's authority should be separated.

The National Assembly Chairman also requested to minimize the need to regularly amend and supplement laws.

"We make laws very carefully, the drafting agency, the reviewing agency, but after a few months of implementation, we see the need to amend and supplement. There are laws that have not been implemented but we have said it is difficult," Mr. Man commented.

Explaining later about the conditions for private bond offerings, Minister Thang said that this is a content that businesses are very interested in. The drafting committee spent a lot of time discussing with relevant parties to make proposals, ensuring caution when amending.

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Source: https://tuoitre.vn/chu-tich-quoc-hoi-sua-luat-theo-huong-khong-tao-them-ap-luc-voi-doanh-nghiep-20250424165016284.htm