Vietnam Proposes Amendments to Enterprise Law to Boost Scientific Commercialization and Strengthen Business Regulations
Hanoi, The Gulf Observer: The Ministry of Planning and Investment has proposed amendments to the Law on Enterprises, aiming to expand eligibility for business establishment and enhance regulatory oversight. The proposed changes, included in the draft amendments to Article 17 of the 2020 Law on Enterprises, seek to facilitate the commercialization of scientific research while addressing regulatory gaps in business registration.
One key amendment would allow public employees who are scientists to establish and manage businesses engaged in the trade of scientific research products. This initiative is designed to promote the transfer of scientific and technological research into commercial applications, further integrating science and technology as a driver of economic growth.
Nguyễn Minh Thảo, Head of the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management (CIEM), welcomed the proposal, highlighting its potential to create a more conducive environment for entrepreneurship.
“This is an opportunity to realize the goal of promoting science and technology as a new driver of economic growth while ensuring a more favorable business environment,” Thảo stated. “It will also help maximize the role of Vietnamese entrepreneurs in this new era.”
Strengthening Business Registration Regulations
In addition to broadening business eligibility, the draft amendments propose stricter measures to prevent fraudulent business practices. The Ministry of Planning and Investment aims to address issues such as false capital contributions, fictitious capital increases, and the establishment of businesses for non-commercial purposes.
To improve oversight, the draft law suggests enhancing supervision and inspection mechanisms while imposing specific penalties for violations. Proposed measures include additional requirements for business registration dossiers, such as financial documentation verifying the financial capacity of shareholders and capital-contributing members. These provisions are intended to prevent false declarations of charter capital and the creation of shell companies for illicit activities.
Thảo underscored the importance of reinforcing penalties for business registration violations, stressing that stricter enforcement will help ensure compliance and maintain market integrity.
If approved, the proposed reforms are expected to facilitate a more dynamic, transparent, and regulated business environment in Vietnam.
