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VCCI: Abolishment of list of goods and services subject to conditional business in Decree 59 is appropriate

10:48 | 30/06/2022

VCN – The Vietnam Federation of Trade and Industry (VCCI) said the nature of two lists of goods and services banned from business, restricted from business or subject to conditional business under Decree 59/2006 and Investment Law 2020 is the same.

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VCCI agrees to abolish the list of goods and services banned from business, restricted from business or subject to conditional business under Decree 59. Photo: Internet
VCCI agrees to abolish the list of goods and services banned from business, restricted from business or subject to conditional business under Decree 59. Photo: Internet

Responding to the proposal of the Ministry of Industry and Trade for amending, supplementing or abolishing the "List of goods and services banned from business, restricted from business and subject to conditional business" specified in Decree 59/ 2006/ND-CP (Decree 59), the VCCI said that the abolition of the List of goods and services banned from business, restricted from business and conditional business Decree 59 is grounded and appropriate.

The explanation for this response, according to VCCI, in terms of legality, the regulations related to the restriction of citizenship must be specified in the legal document. Because Decree 59 promulgating the List of goods and services banned from business and restricted from business is not appropriate on competence if referring the provisions of the Constitution 2013 and the Civil Code 2015.

In addition, VCCI said that Decree 59 stipulates a list of goods and services banned from business, restricted from business, and subject to conditional business but the conditions are applied to business entities rather than goods and services, which means that the business entities must meet certain conditions to do business in these goods and services.

Meanwhile, the Investment Law 2020 stipulates the list of industries banned from business investment and subject to conditional business; in which, the conditions to be allowed to do business in the industries are applied to "business entities". Thus, the nature of the two types of lists of Decree 59 and the Investment Law 2020 is the same, both binding conditions for business entities.

According to the Investment Law 2020, in case there are different provisions between the Investment Law and other laws issued before the effective date of the Investment Law Investment in terms of industries banned from business investment or subject to conditional business, the provisions of the Investment Law will be applied. Thus, the regulations on industries banned from business and subject to conditional business will comply with the Investment Law 2020.

On the other hand, when reviewing goods and services on the list of Decree 59, VCCI found that goods and services banned from business, restricted from business, and subject to conditional business and industries banned from business investment and conditional business are different from the list specified in the Investment Law 2020.

Even some goods and services specified in the Decree 59 are not available or have been amended in the Investment Law. The existence of the list in Decree 59 brings legal risks to businesses because this Decree is still in effect. If trading in goods and services that are not on the list of the decree but are in the list of the Law on Investment, businesses will not have to meet any conditions as prescribed in the decree, but must meet the business conditions as prescribed in the Investment Law and vice versa.

Furthermore, according to VCCI, the goods and services on the list in Decree 59 are referenced in detailed documents, many of which have expired. The names of goods and services on this list along with the management mechanism have also changed according to current regulations. Therefore, if under Decree 59, enterprises will not know which regulations or documents will be applied.

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Through research, VCCI also expressed concern about whether Decree 59 covers all goods and services banned from business, restricted from business, and subject to conditional business. Is the list in this decree similar to the list of industries banned from business investment and conditional business specified in the Investment Law 2020. Therefore, the goods and services in the list specified in Decree 59 have not clearly shown their role, significance or policy goals.

By Huong Diu/ Huyen Trang