Amendments to enterprise, investment laws must promote SOE efficiency

The amendments to the Law on Enterprise and Law on Investment must include stronger solutions to thoroughly and comprehensively reform State-owned enterprises (SOEs) and enhance their efficiency, according to the Vietnam Association of Financial Investors (VAFI).

amendments to enterprise, investment laws must promote soe efficiency hinh 0
Workers at the Toyota Vietnam plant in Vinh Phuc province. (Photo: VNA)

In a recent document sent to the Government about VAFI’s recommendations regarding amendments to the enterprise and investment laws, the association pointed out that there was a shortage of effective solutions to tackle the weak management at SOEs, which was hindering the country’s socio-economic development.

“It is necessary to have drastic measures to reform SOEs with efficiency,” VAFI said. VAFI said that the amended laws should include a new definition for SOEs – those with the State holding a controlling stake, listed on stock exchanges and operating in sectors requiring a controlling State stake.

The association also said that the amended laws must enhance the accountability of all members of SOEs’ management boards and boards of supervisors. All other SOEs must be equitised and listed on stock exchanges.

VAFI estimated that if the amended laws could enhance SOEs efficiency, the State budget could collect up to 100 billion USD in the next 15 years, a significant sum to help reduce public debt and invest in transport infrastructure, including the North-South high-speed railway and urban metro in Hanoi and HCM City.

VAFI also recommended that foreign investors founding business or holding controlling stakes at firms in Vietnam under the Law on Enterprise and the Law on Investment should be regarded as domestic investors.

In addition, the regulation on caps on the ownership of foreign investors could not limit the reception of technology and capital from the foreign investors, urging the Government to issue a new list of business lines requiring foreign ownership caps.

VAFI estimated that around 80 percent of existing business lines with foreign ownership caps should be removed.

VAFI asked why Singapore was one of the largest financial centres in Asia. It was because its Law on Enterprise treats all investors equally, the association said.

VAFI said that the development of the Vietnamese economy and business community was entering a more intensive period in the technology-driven era, requiring management to be more facilitating.

“The Government should regard amending the investment and business laws to be a revolution,” VAFI said.

The association said that the draft law which was recently made public for comments did not really create changes to bring benefits to the economy and the business community, urging more amendments.

The laws must create framework which helped attract more foreign capital and technology.

The procedures for setting up businesses must be simplified, the association said.

VNA

Other News

Vietnam accelerates innovation to boost growth, competitiveness

Vietnam accelerates innovation to boost growth, competitiveness

By 2030, Vietnam aims to rank among the world’s top 40 in the GII; raise total social investment in R&D to at least 2% of GDP, with non-State funding accounting for over 60%; increase international scientific publications by an average of 10% annually; and raise the number of patent applications and granted patents by an average of 16-18% annually.

Vietnam sees high growth prospects

Vietnam sees high growth prospects

Experts from the Institute of Vietnam and World Economy under the Vietnam Academy of Social Sciences noted the quality of recent growth as the high growth rate has been recorded against an increasingly higher comparative base.

Vietnam seeks bigger share of global Halal market

Vietnam seeks bigger share of global Halal market

Vietnam's Halal exports remain modest at around 900 million USD a year, accounting for less than 1% of the global market. Most exports are still raw agricultural and seafood products. Only around 1,000–1,300 Vietnamese businesses obtained or maintained Halal certification during 2024–2026.

Hanoi sets up inter-agency mechanism to operate carbon market

Hanoi sets up inter-agency mechanism to operate carbon market

Under a decision of the municipal People’s Committee on establishing an inter-agency working group, departments and agencies are responsible for identifying facilities subject to greenhouse gas inventories, developing emissions-reduction plans and studying projects capable of generating carbon credits.

Shrimp exports reach 3.3 billion USD in eight months

Shrimp exports reach 3.3 billion USD in eight months

According to data from the Vietnam Customs cited by the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports reached 478.5 million USD in August, up 4.2% from the same month last year. The eight-month total stood at 3.3 billion USD, representing a year-on-year increase of 12%.

Russian investors explore opportunities in Vietnam's real estate market

Russian investors explore opportunities in Vietnam's real estate market

Vietnam is seen as a potential market, with considerable room for growth in real estate, particularly commercial property, compared with some regional markets. Strong Vietnam-Russia ties and opportunities to establish foreign-invested enterprises are also considered favourable for Russian investors.

Phu Quoc airport planning adjusted to serve APEC 2027

Phu Quoc airport planning adjusted to serve APEC 2027

For 2021-2030, the Civil Aviation Authority of Vietnam proposed bringing forward the investment in a parallel taxiway system and a connecting taxiway north of Runway No. 2 at Phu Quoc International Airport, in order to connect with the aircraft maintenance and repair facility (hangar) planned for the northern area of ​​the airport.

Policy, infrastructure emerge as new advantages in FDI attraction

Policy, infrastructure emerge as new advantages in FDI attraction

From policy and infrastructure to industrial real estate, Vietnam’s FDI advantages are broadening towards a more integrated production ecosystem, offering investors a stronger combination of conditions for high-value, technology-intensive and long-term projects.

Logistics upgrade vital to 1-trillion-USD trade target: experts

Logistics upgrade vital to 1-trillion-USD trade target: experts

As trade expands, systemic bottlenecks across transport networks, warehousing, ports, border gates, and industrial zones are becoming more apparent. Experts emphasise the need to shift from a fragmented, project-by-project approach toward strategic management structured around trade corridors and integrated supply chains.

Ample room for Vietnam, US to deepen cooperation

Ample room for Vietnam, US to deepen cooperation

Do Ngoc Hung, Trade Counsellor and head of the Vietnam Trade Office in the US, said what stands out is not only the growth in trade volume but also the increasingly deep economic ties between the two countries.

Flexible fiscal policy helps drive economic growth

Flexible fiscal policy helps drive economic growth

According to the Ministry of Finance, State budget revenue in the first eight months of 2026 was estimated at 2.02 quadrillion VND (77.7 billion USD), equivalent to 80% of the annual estimate and up 16% year-on-year. Domestic revenue reached 1.75 quadrillion VND, accounting for 86.6% of total revenue and rising 16.6%.

Electronic components are produced at a factory in Hanoi. (Photo: VNA)

Hanoi's imports surge 41% in first eight months of 2026

Hanoi aims to achieve average annual export growth of at least 12% during 2026-30, with the city seeking to diversify export markets, boost high-tech and value-added products and reduce reliance on traditional markets.