National Assembly Chairman Tran Thanh Man said that the Government's decree on the establishment, management and use of the Investment Support Fund aims to create a favorable investment environment.
On the afternoon of December 11, the National Assembly Standing Committee gave opinions on the draft Decree regulating the establishment, management and use of the Investment Support Fund.
The Government's submission clearly stated the necessity of promulgating, the purpose and viewpoints of developing the Decree. The development of the Decree aims to stabilize the investment environment; ensure competitiveness and attractiveness to attract strategic investors, domestic and foreign multinational corporations to invest in a number of areas that need investment encouragement, especially high-tech areas.
The Draft Decree has 6 chapters and 45 articles.
According to the Decree, subjects eligible for investment support include: high-tech enterprises; enterprises with investment projects to produce high-tech products; enterprises with high-tech application projects; enterprises with investment projects in research and development centers.
Regarding the method of support: direct payment in cash to support costs. This is a form of cost support that has been applied by many countries in the world and is consistent with the principles of the Organization for Economic Cooperation and Development (OECD).
Support items include: training costs, human resource development; research and development costs; investment costs to create fixed assets; production costs of high-tech products; investment costs for social infrastructure works and other cases decided by the Government.
Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh - representative of the inspection agency - said that the Standing Committee of the Finance and Budget Committee and a number of National Assembly Committees agreed on the necessity of issuing a Government Decree to ensure the organization and implementation of the contents stipulated in the Laws and Resolutions of the National Assembly to deploy support policies and attract investment in the new context of implementing global minimum tax, maintaining the attractiveness of the investment environment in Vietnam, meeting practical requirements and in line with international practices.
However, the review agency believes that the support content in the draft Decree is currently focused on the high-tech sector and to meet the conditions and criteria for support, the main beneficiaries will be foreign and multinational investors. Support for domestic enterprises from the Fund's resources is unclear.
The draft Decree stipulates that the subjects eligible for investment support are mainly multinational enterprises (subject to global minimum tax) in the high-tech sector, excluding all enterprises affected by global minimum tax.
At the same time, there are also enterprises that do not pay the global minimum tax (for example, due to losses or not being subject to the global minimum tax) that still receive support from the Fund; domestic enterprises will find it difficult to meet the conditions and criteria to be able to receive support from the Fund.
The majority of opinions in the Standing Committee of the Finance and Budget Committee believe that the provisions on applicable subjects in the draft Decree are appropriate, and therefore agree with the draft Decree.
However, the Government needs to consider aiming for the Fund to also be used to encourage investment in domestic enterprises and other areas that need investment encouragement according to Resolution 110/2023/QH15...
Speaking at the meeting, National Assembly Chairman Tran Thanh Man said that the Government's decree on the establishment, management and use of the Investment Support Fund aims to create a favorable investment environment, attract and encourage all types of enterprises and economic sectors to contribute to the country's socio-economic development.
The National Assembly Chairman suggested reviewing the policy content in the draft Decree to ensure it is consistent with current legal regulations; at the same time, comparing it with international treaties and commitments that Vietnam has signed; avoiding legal conflicts, especially regulations on global minimum tax.
In addition, the purpose of using the Fund is to ensure harmony and fairness between foreign and domestic enterprises. The draft Decree needs to review the conditions and criteria for benefiting from the policy; ensure transparency in the level of support and the beneficiaries; consider stipulating the principles and criteria for determining the level of support for enterprises, avoiding the emergence of a "request-grant" mechanism leading to complaints.
National Assembly Chairman Tran Thanh Man noted the need to strengthen inspection and supervision of the management and use of the Fund. The Fund must be managed strictly to avoid imbalances between the Fund's ability to respond and the total amount of support needed; and the evaluation process must be studied to support costs in a transparent and objective manner./.
Source: https://www.vietnamplus.vn/hop-uy-ban-thuong-vu-quoc-hoi-duy-tri-tinh-hap-dan-cua-moi-truong-dau-tu-post1001377.vnp
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