At the conference titled "Law on Enterprises 2020 and Law on Investment 2020: What should businesses do?” held December 18, vice chairman of the Vietnam Chamber of Commerce and Industry Hoang Quang Phong said that as COVID-19 has kept hampering the local economy, the National Assembly approved the Law on Investment 2020 and Law on Enterprises 2020 that will take effect from January 5, 2021.

“The act is meaningful to businesses in Vietnam because the overlapping content s between the previous iterations of the Law on Investment and the Law on Enterprises have been holding them up,” said Phong. “The adjustment aims to solve many of their problems.”

The Law on Investment 2020, in particular, added plenty of new conditional business lines such as water supply. Moreover, the law also supplemented the list of prohibited business sectors like firework business, loan shark business, among others.

The Law on Enterprises 2020 also added the regulation that allows offering stocks and bonds to less than 100 investors, including professional and unprofessional securities investors. Moreover, the law does not allow to put stocks and bonds on trade on mass media.

“Vietnam has built a healthy investment climate by fulfilling the demand of local people, businesses, and also reviewing the best standards for management in the world to apply to the country,” said Tran Huu Huynh, chairman of the Vietnam International Arbitration Centre.