Research On Vietnam Investment Law System

Vietnam has achieved 30 years of important achievements in attracting foreign investment in the context of US encirclement and embargo and social economic difficulties.At that time,Vietnam dramatically relied on foreign aid,severe inflation increased by three numbers,stagnated industrial and agricultural production,serious shortage in food and consumer goods.In 1986,the Sixth Party Congress proposed the Doi Moi policy,which established a diversified commodity economy and open door.The Vietnamese National Assembly promulgated the Vietnam Foreign Investment Law at the end of 1987.This is a historic decision marking a fundamental change in the views and opinions of the Vietnamese party and state on foreign investment.This was not only a prerequisite for opening up,but also attracting foreign investment and opening the door.It was a new and extremely important resource for Vietnam's social economic development,and has made a positive contribution to the establishment and improvement of Vietnam's market economic system.Vietnam enacted Company and the Private Enterprise Law in 1990,and then the Domestic Investment Promotion Law in 1994,marking the continuous establishment and improvement of Vietnam's investment systemWhen discussing a country's ability to attract investment,It is first necessary to mention the unity and improvement of its investment law.It must include investment guarantee provisions,clearly expressing the state's willingness to accept investments from investors and their investment projects,and ensuring that investment measures which are stipulated in legal provisions that investors are engaged in investment activities for commercial purposesSustainable development is a popular trend,and the current development rules of the world and Vietnam cannot be separated from this development rule.Attracting foreign direct investment(FDI)is one of the driving forces of the development which important to almost every country,including Vietnam.However,we cannot attract at all costs.We can only attract foreign direct investment under established development goals,including sustainable development goals.In fact,over the past 30 years(1988-2018),foreign direct investment has has contributed positively to the social-economic development of Vietnam.This thesis analyzes Vietnam's achievements in attracting foreign investment and Vietnam 's social economic development in the past 30 years.Thirty years is not a long time for the development process of Vietnam country,but it is enough to conduct a fairly comprehensive assessment of the opening up policy and attract foreign investment to understand the outcome,deficiencies,and limitations in order to learn from them.Proposing strategic directions to further attract and improve foreign investment aimed to meet future development needs.Over the past 30 years,Vietnam has continuously improved financial institutions and policies to attract and better manage foreign investment resources.From 1975 to 1986,the Vietnamese party and state advocated to establish an economy operating under a central planning mechanism,with two main economic sectors that were the state-owned economy and the collective economy.The economic units of this period consisted of two types of state-owned economic organizations(with many different names,such as state-owned industrial enterprises,joint ventures and internal enterprises),and cooperatives,collectively referred to as socialist economic organizations.In order to regulate the investment activities of these economic organizations,the state has issued many legal documents.However,due to the dominance of national planning in the economic planning mechanism,investment law is not the key law of the planned economy.Legally,the legality of private sector investment activities will not be recognized in this stage.The real emphasis on the Vietnamese investment legal system began in 1986 at the Sixth National Congress of the Communist Party of Vietnam.It marked an important turning point in the economic development strategy and decided to develop a commodity economy with multiple economic sectors,that called a socialist-oriented market economy.In November 2019,analysts from UOB Singapore published an article in the Singapore Lianhe Zaobao saying that Vietnam has become a new bright spot in Southeast Asia to attract foreign investment.With economic growth and industrialization,Vietnam will become an important partner of Southeast Asia in the coming decade.This is the results of the Vietnamese government's efforts to promote infrastructure development and optimize the business environmentVietnam's foreign direct investment projects help increase budget revenues,improve the balance of payments,provide an important source of additional funds for economic development,adjust the economic structure in the current direction,and improve technology,develop a market economy,integrate the Vietnamese economy into the world economy,create employment opportunities,train human resources and improve the living standards of workers.In addition to the achieved results,foreign direct investment also raises many problems that adversely affect Vietnam's sustainable development strategy.In particular,some projects will cause serious environmental pollution,such as Vedan,Fomosa,etc.,which will affect the ecological environment and the quality of people's life.Recently,a series of urgent issues affecting the quality of Vietnam's development,including the low quality of foreign direct investment,have concentrated on labor-intensive and intensive industries Using resources,processing and assembling industries,especially leather shoes,textiles,electronic components and other low value-added goods,especially those that cause seriously environmental pollution.The practice of attracting and using foreign direct investment in industry is facing high risks of environmental pollution,especially in the fields of mining,heat and chemical industries.Agriculture,education and training,water and waste treatment,health and social assistance are few.It has not focused on attracting foreign direct investment to develop high-tech and environmentally friendly industries.On the economic front,more and more foreign direct investment companies have changed prices and evaded taxes,causing losses in agricultural budget revenue.Foreign direct investment companies have not really had a huge spillover effect on the economy.The links between domestic and foreign direct investment enterprises are small and inefficient.In society,the foreign direct investment sector creates jobs for workers who are not commensurate with investment incentives,employees' earnings are disproportionate to working hours and labor intensity.Regarding to the ecological environment,many foreign direct investment companies do not comply with environmental protection laws and try to violate environmental protection laws,causing serious environmental pollution.All of these negative impacts are potential obstacles and pose huge challenge to Vietnam's sustainable development strategy.The "Investment Law" of Vietnam has made ambitious changes from the aspects of easing the market,expanding preferential policies and investment support,innovating and diversifying investment forms,simplifying investment approval procedures,and strengthening national investment management.These amendments aim to create a better,safer and more favorable investment environment to attract more foreign investment and prosper the Vietnam's economy.Although progress and deficiencies coexist,how effective these amendments can bring to Vietnam is worth watching.This article attempts to discuss the above issues and offer the writer's own opinions,hoping to help further improve the Vietnamese investment legal system.