On September 9, the Ministry of Justice held a meeting to review the draft Law amending and supplementing a number of articles of the Securities Law; Accounting Law; Independent Audit Law; State Budget Law; Law on Management and Use of Public Assets; Tax Management Law; and Law on National Reserves. Deputy Minister of Justice Tran Tien Dung chaired the meeting.
At the meeting, members of the Appraisal Council focused on exchanging and discussing the proposed amendments and supplements to 7 Laws.
In which, the content of interest is the conditions for issuing corporate bonds to the public.
A representative of the Vietnam Bond Market Association said that the draft Law has added two more conditions: "having collateral or a bank guarantee" and "except in cases where credit institutions offer bonds as secondary debt that satisfy the conditions to be counted in tier 2 capital".
However, in reality, businesses with effective business operations and good financial status can make unsecured loans and issue unsecured bonds. The presence or absence of security is part of the bond structure and is reflected in the issuance price, which is automatically balanced by the market based on supply and demand.
Therefore, according to this person, the regulation requiring bonds issued to the public to have collateral and bank guarantees will not solve the core problem of selecting and screening quality issuers to issue corporate bonds; at the same time, it will create a major barrier, directly reducing the supply of corporate bonds to the public, including leading corporate bonds, which can mobilize unsecured capital without guarantees.
Regarding another content about requiring e-commerce platforms to declare taxes in the Law on Tax Administration, Mr. Pham Van Hung - Legal Department, Vietnam Federation of Commerce and Industry (VCCI) expressed concern that this regulation will create unfairness between businesses that must comply and businesses that do not have to comply with Vietnamese law and have a great impact, affecting the business activities of domestic small and medium enterprises.
Besides, this regulation is not really suitable for the nature of e-commerce platforms because these platforms are only intermediaries between buyers and sellers; at the same time, the platforms do not control the entire cash flow because direct payment still accounts for a large proportion of payment methods.
In addition, the Appraisal Council also gave opinions on the use of local budgets to support the direct superior budget and other localities; promoting decentralization, delegation of authority, improving State management capacity in the field of accounting; and the structure of subjects subject to mandatory auditing.
Concluding the meeting, Deputy Minister of Justice Tran Tien Dung emphasized that the amendment and supplementation of 7 legal documents on finance and budget is an urgent issue, receiving the attention and strong direction of the Government and the Steering Committee for the review to handle problems in the system of legal documents, promote growth, control inflation, and stabilize the macro-economy.
The Ministry of Justice will fully absorb and reflect the opinions in the Appraisal Report.
