CONCETTI prouds to be one of the best consultant in the field of technology transfer and investment, with experience of being a companion with enterprises through the ups and downs of Vietnam's economy for 30 years since the beginning days of Doi moi.
On the occasion of company’s 30th anniversary, Information & Enterprise consulting Center of CONCETTI would like to send to you series of articles pointing out a number of changes of legal environment of Vietnam’s business and investment from 1988 till then.
Part 1: The private business and the development of the private economy sector.
Back through time to the time before Doi Moi, Vietnam's economy was an economy based on administrative subsidies.
In this time, though laws recognize right of private property, it does not recognize private business right.
Furthermore, Article 25 of the Constitution (Constitution 1980) stipulates: "In the Republic of socialist Vietnam, the economic establishments of feudal landlords and compradors are nationalized without compensation.".
Fast-forward to the 6th Party Congress when the Party adopted new policies on the multi-sector economy, the first time after many years, private force has been unleashed.
The born of Law on Private enterprise in 1990, the Law on Company in 1990 have officially recognized the business rights of the individual;
Article 5 of the Law on Company has these paragraph: "The State recognizes the long-term survival and development of the company, acknowledged the equality before the law of companies with other businesses and profitability and legality of the business.".
Turn to the Law on Enterprise in 1999; the Law on Enterprise in 2005; the Law on Enterprise in 2014 all continuously inherited and strengthen the business right while also recognize and protect business right foreign investors.The critical changes of laws has brought significant changes to economy while according to the report of the General Statistics Office, the country's GDP in 2017 reached 5007.9 trillion copper, in which the proportion of GDP contribution of the private sector has reached approximately 43%, the contribution of FDI also reached over 20% and is predicted to continue to increase in the subsequent years./
Le Thang
(To be continued)