Amending the Enterprise Law: Promoting transparent and effective business

Responding to international practices and commitments

The Government emphasized that the amendment of the Enterprise Law is based on a solid political and legal foundation and urgent practical requirements. Party resolutions, such as Resolution No. 27-NQ/TW dated November 9, 2022 on building a socialist rule-of-law state, Resolution No. 41-NQ/TW dated October 10, 2023 on promoting the role of entrepreneurs and Resolution No. 158/2024/QH15 dated November 12, 2024 on the 2025 socio-economic development plan, require innovation in legislative thinking, cutting administrative procedures and creating a favorable and transparent business environment. At the same time, Conclusion No. 119-KL/TW dated January 20, 2025 of the Politburo emphasized perfecting the law-making process, considering institutions as a competitive advantage in developing science and technology, innovation and digital transformation.

In practice, the implementation of the Enterprise Law has shown some shortcomings that need to be adjusted, including unclear terminology, lack of consistency with other legal documents, regulations on market entry that do not meet new development requirements, and the corporate governance structure that needs to be specified. In particular, Vietnam being included in the Financial Action Task Force (FATF) Gray List on anti-money laundering from June 30, 2023 requires the development of a mechanism to store and provide accurate information on beneficial owners of legal entities, and at the same time, apply effective measures to handle violations. These requirements promote the amendment of the law to ensure a safe, transparent business environment and in line with international commitments in the National Action Plan on anti-money laundering for the period 2021-2025.

The objective of the draft Law is to complete the legal framework on the establishment, organization and operation of enterprises, promote enterprise development, attract investment and improve the business environment. The draft ensures timeliness, synchronization, unity and practicality, while demonstrating Vietnam's commitment to preventing and combating money laundering. The viewpoint of law-making emphasizes institutionalizing the Party's policies, innovating in the spirit of Conclusion No. 119-KL/TW, inheriting effective regulations and ensuring synchronization with the international legal system, referring to international experience to create similarities.

Enhance digital transformation and governance transparency

The draft Law amending and supplementing a number of articles of the Law on Enterprises focuses on three main contents: market entry, corporate governance and anti-money laundering. Regarding market entry, the draft continues to institutionalize the policy of cutting administrative procedures, creating a favorable environment for businesses. Inheriting advances in information technology application, the draft promotes digital transformation in business registration by using personal and organizational identification instead of traditional documents. The two abolished contents help reduce paperwork and information that businesses must declare, while personal identification authentication through connection with the National Population Database allows management agencies to monitor personal identity and legal status from the beginning, without increasing administrative procedures or hindering the freedom of business.

Regarding corporate governance, the draft amends and supplements 21 contents, including 14 amended contents and 7 new contents, to overcome shortcomings and strengthen post-audit. The amendments clarify concepts, unify regulations to ensure enforcement, adjust corporate governance to suit the realities of different types of enterprises and increase the responsibility of agencies and localities in state management. In particular, the draft focuses on reducing virtual capital, increasing transparency of business operations and integrating information sharing between management agencies to improve management efficiency without affecting business operations. These changes create a safe and transparent business environment for people and businesses.

In order to meet international commitments on anti-money laundering, the draft amends and supplements 24 contents, including 14 amended contents and 10 new contents, related to the storage, provision, and sharing of information on beneficial owners. These provisions do not create administrative procedures, minimize compliance costs for businesses, and ensure complete, accurate, and updated information for competent authorities. The measures to handle violations are designed to be appropriate, effective, and deterrent, meeting FATF's requirements to remove Vietnam from the Gray List before May 2025.

The draft Law adheres to the principles of ensuring freedom of business, reforming administrative procedures, improving the business investment environment and enhancing the effectiveness of state management. By combining digital transformation, transparency in governance and implementation of international commitments, the draft not only addresses current shortcomings, but also creates a solid legal foundation for businesses to develop sustainably, contributing to the realization of socio-economic goals by 2025 and enhancing Vietnam's position in the international arena.

Source: https://thoibaonganhang.vn/sua-doi-luat-doanh-nghiep-thuc-day-kinh-doanh-minh-bach-hieu-qua-163320.html