The Ministry of Finance (MoF) has proposed slashing 38 business conditions and simplifying 40 administrative procedures in the securities sector in its law review this year.
The securities sector will witness the largest streamlining process if the ministry’s proposal is accepted.
The finance ministry currently manages 370 business conditions. It has recommended getting rid of 99 conditions and reforming 94 administrative procedures in many sectors, including banking-finance, customs, securities, insurance, accounting and auditing as well as tax as per the Government’s order.
In the securities sector, the ministry said it was assigned to oversee the drafting of the revised Securities Law, which is included in the law-making programme in 2018 and will be submitted to the National Assembly for approval in 2019.
The abolition and simplification of administrative procedures in the securities sector will, therefore, be comprehensively studied in the process of drafting the law and guiding documents this year.
The business conditions mentioned in the review include the capital requirement for establishing securities companies (VND100 billion, or US$4.4 million, for a self-trading securities company and VND165 billion for an underwriting company). Conditions related to personnel such as full civil act capacity, offices, working facilities and equipment are also under review.
In the insurance sector, the ministry has proposed eliminating the condition that requires capital contribution in cash because the current Enterprise Law allows investors to contribute capital in various forms.
Instead, it only requires investors to contribute their own capital, comply with the law and ensure that their capital contribution does not affect their business activities.
For the establishment of insurance companies, insurance brokerage enterprises and foreign branches, the ministry has suggested removing the condition of specifying forms for enterprises, charter of the company (for insurance and insurance brokerage firms) and regulations on organisation and operations (for foreign branches).
Regarding limited liability companies, the ministry has proposed eliminating the requirement that Vietnamese investors must operate in the fields of finance, banking and insurance to attract more investors to invest in the insurance market.
For foreign investors, the ministry suggested eradicating the condition that requires foreign investors to be insurance companies.
To set up an insurance joint stock company, the ministry has proposed abolishing the condition that founding shareholders must jointly hold at least 50 percent of ordinary shares of the company in the first three years since the issuance of business licence.
Late in April, the Ministry of Industry and Trade also decided to simplify business conditions and administrative procedures in 10 sectors under its management.