Transformation of enterprises to be liberalized

VNGOP – The Government has just issued Decree 139/2007/NĐ-CP specifying the implementation of some articles in the Law on Enterprises relating to the establishment, management structure, operation and re-arrangement as well as dissolution of enterprises.

September 11, 2007 7:03 AM GMT+7

Law on Enterprise facilitates companies’ performance

According to the Decree, all economic entities including foreign-investors based in Việt Nam are authorized to establish enterprises of their own/or join with others to establish enterprises in Việt Nam, no matter where they live or what nationalities they are; provided that they do not belong to the entities to be regulated under Item 2 Article 13 of the Law on Enterprises. Besides they are also authorized to contribute capital to or purchase an unlimited number of shares from enterprises, provided that they do not belong to the entities to be regulated under Item 4 Article 13 of the Law.

Nevertheless it should be noted that the professional certificates issued abroad are of no value in Việt Nam, except for law practice of the specialized areas or the professions to be applied otherwise in the international conventions, in which Việt Nam is a member.

The Decree also specifies various forms of the transformation of enterprises; and rules that within five working days after collecting all necessary application papers for the transformation, the registration agencies and the relevant state investment management bodies shall issue business registration or investment certificates respectively.

By Hoàng Phương