Capital Law 2024 Part 2: The driving force for the Capital to take off in the new era

Economic growth drivers of the capital and the country

Assessing the importance of the Capital Law 2024, Lawyer Nguyen Phu Thang - Hanoi Bar Association emphasized: "In my opinion, the highlights of this Law include the expansion of specific mechanisms, helping Hanoi gain more autonomy in many important areas such as urban planning, financial and budget management, investment attraction and infrastructure development". According to Lawyer Thang, specifically, those new points include:

Firstly, the new Law stipulates the decentralization and authorization between the levels of government of Hanoi, and at the same time supplements the mechanism of decentralization and authorization from the Government, the Prime Minister and Ministries and branches to the agencies of Hanoi. This is to concretize the policy of promoting decentralization and authorization, creating conditions for the city to be more proactive in management and development. In addition, public units of Hanoi as well as public service units in Hoa Lac High-Tech Park and the National Innovation Center are allowed to use public assets for business purposes, leasing, joint ventures and associations in accordance with the functions and tasks of each unit;

Lawyer Nguyen Phu Thang - Hanoi Bar Association.

Second, in terms of finance and budget, the Law has strengthened Hanoi's authority in mobilizing capital sources and using the budget more flexibly to invest in key projects, thereby promoting sustainable economic growth and especially social security, such as in the field of social insurance;

Third, establish a Venture Capital Fund. The Law allows Hanoi to pilot the establishment of a Venture Capital Fund using the state budget to invest in high-tech enterprises, science and technology enterprises, and innovative startups in key areas. The good point of this revised Law is that the Fund's operations accept risks according to market principles;

Fourth, infrastructure and transport development. The 2024 Capital Law creates conditions for Hanoi to promote investment and modernize the infrastructure system, especially transport infrastructure. The addition of the build-transfer (BT) contract type helps the city mobilize socialized capital to implement important projects, solving the "problem" of capital shortage in recent times. In addition, the Law also sets out specific mechanisms and policies to attract strategic investors, especially in the field of urban railway system development (TOD), contributing to reducing traffic pressure, limiting environmental pollution and improving people's quality of life. Chapter III of the Law also amends and supplements regulations related to urban planning, giving Hanoi more initiative in approving and implementing infrastructure development projects, using land more flexibly to expand new urban areas and renovate old residential areas. These adjustments help the city remove many infrastructure "bottlenecks", reduce traffic congestion and improve the urban environment in a sustainable way;

Fifth, the Law allows Hanoi to proactively research, regulate and consider building cultural industrial centers on river banks, floating banks of the Red River and other locations with cultural space advantages without having to obtain approval or permission from competent authorities.

Lawyer Doan Thu Nga - Director of LAWPRO Law Firm.

Commenting on the positive highlights of the law, Lawyer Doan Thu Nga - Director of LAWPRO Law Firm said: “The highlight that I feel most satisfied with in the change of the new Law compared to the old Law is the increased participation of private and foreign economic sectors in investment projects, while encouraging the development of creative and high-tech industries. This helps the capital not only develop in terms of infrastructure but also promotes a strong transformation in the digital economy and knowledge economy. In addition, regulations related to attracting investment and reforming management mechanisms will also help reduce obstacles, creating a more effective investment environment.

The Capital Law 2024 also brings great potential in developing industrial parks, research centers and breakthrough fields such as technology, finance, logistics, contributing to turning the Capital into a leading economic center of the country. The Capital Law 2024 will be an important foundation to help Hanoi overcome current challenges and develop sustainably in the future. Enterprises need to be aware of and make the most of the opportunities that the new Law brings to develop more strongly in this potential business environment!" - Lawyer Thu Nga affirmed.

People and businesses should seize the opportunity

According to Lawyer Nguyen Phu Thang: "The Capital Law is considered a lever for socio-economic development not only for Hanoi but also for the whole country". In order for the Capital Law 2024 to truly come into life and maximize its effectiveness, according to Lawyer Thang, organizing the implementation of the law in a synchronous manner to ensure efficiency, effectiveness and efficiency is extremely important. Accordingly, we make the best use of the advantages of the Capital.

Specifically, there should be detailed guidance documents to implement the provisions of the Law, helping authorities, businesses and people to easily apply them in practice. Without clear guidance, it may lead to a situation where each place implements it differently, causing difficulties in the implementation process. When people, businesses and investors clearly understand the content of the Law, they will be able to effectively utilize the new mechanisms and also monitor the implementation process.

Ms. Le Thi Dung - Director of Doanh Tri Institute, General Director of Dgroup Human Resources Training and Development Joint Stock Company.

Along with that, Hanoi should actively call on businesses and investors to participate in priority development areas such as high technology, transport infrastructure, and smart cities. At the same time, the city can build mechanisms for regular dialogue with businesses and people to promptly listen and remove obstacles in the process of implementing the Law.

In particular, it is necessary to pay attention to the mechanism for inspecting and supervising the implementation of the Law. Granting greater autonomy to Hanoi requires a strict control system to ensure that policies are implemented in accordance with the spirit of the Law, avoiding abuse of power, corruption, or inconsistent and indecisive implementation. Competent agencies need to have measures to monitor and evaluate regularly and promptly make adjustments when problems arise. When all of the above factors are ensured, the Capital Law 2024 will maximize its effectiveness, creating an important driving force to help Hanoi rise up and develop strongly and outstandingly in the coming years.

From the perspective of enterprises, to contribute to bringing the Capital Law 2024 into practice, Ms. Le Thi Dung - Director of the Institute of Business Intelligence, General Director of Dgroup Human Resources Training and Development Joint Stock Company commented: "I have high expectations for the Capital Law 2024, because it not only creates a more favorable investment environment but also opens up many opportunities for enterprises, especially innovative startups like us.

The point I like most is the policies to promote Hanoi's innovation ecosystem. According to the new Law, Hanoi will have intermediary organizations to support innovative startups such as promotion centers, incubators, and investment funds (Article 3). This is a very important factor to help startups easily access capital, technology, and a network of high-quality advisors. In addition, the Law also emphasizes that Hanoi will become a leading center for innovation and digital transformation (Article 23). This means that the city will prioritize resources for high-tech, automation, biotechnology, and artificial intelligence - the fields that startups are aiming for.

I believe that with these policies, Hanoi will become an attractive destination for startups, helping us not only develop domestically but also reach out to the international market."

Mr. Nguyen Trung Kien - Director of the Institute of Technology Strategy and Innovation (VNS Capital):

“The amended Law on the Capital has important changes in many different aspects to promote transformation in terms of government organization, economic development and social security. This will be a boost for the economic development of the Capital in the coming years.

In my opinion, businesses need to see this as a great opportunity but also a challenge, so they need to be serious and persistent to grasp it. Each business needs to carefully study the mechanisms, policies, and implementation procedures as well as demonstrate seriousness in long-term investment along with financial and technological capacity and experience in investing in projects in similar fields. At the same time, there needs to be a clear orientation in training, developing human resources, the rate of localization of manufactured products as well as meeting the requirements of national defense, security and environmental protection according to the provisions of Vietnamese law to maintain the government's preferential treatment in the long term.

(To be continued)

Doan Trang - Van Huong

Source: https://baophapluat.vn/luat-thu-do-2024-ky-2-luc-day-de-thu-do-cat-canh-trong-ky-nguyen-moi-post543364.html