With some 95 percent of delegates voting yes, the National Assembly passed the amended Law on Investment, which bans debt collection services on June 17, VnExpress news site reported.
During a discussion on May 26, some National Assembly delegates said debt collection services should not be banned but classified as a conditional business activity because the service meets the needs of citizens, and debt collection service providers possess the effective tools to comply with the law while collecting debts for customers.
However, most delegates (some 80%) agreed that debt collection services have negatively affected social security and order. Even though there are regulations in place for debt collection services, many businesses and individuals have taken advantage of the service to establish groups that commit crimes such as extortion, black credit and usury.
In addition to banning debt collection services, the amended Law on Investment also contains stricter regulations on the mergers and acquisitions of projects located in areas that play an important role in national defense and public security. The Standing Committee of the National Assembly explained that attracting investments and socioeconomic development must be in harmony with ensuring national defense and public security.
Additionally, to guarantee the responsibility of investors in developing projects and to prevent work from being suspended, the amended Law on Investment requires investors to leave a deposit for the completion of their projects. Besides this, they are not allowed to prolong the status of projects by more than 24 months and their projects will be stopped if they don’t meet the schedule.
Moreover, the amended law identifies high technologies, innovative entrepreneurship, research and development, new material production, clean energies, new energies, information technology and digital content as priority sectors.
The amended Law on Investment will take effect on January 1, 2021.
