Investing in Diversified High-Growth Must Be Secure

, Road traffic safety in Vietnam

On April 23rd, during the 32nd session of the National Assembly Standing Committee (NASC), initial opinions were provided regarding the draft report on the results of the thematic supervision of “Enforcement of policies and laws on ensuring road traffic safety during 2009-2023”.

Road network development

Presenting the report, Lieutenant General Le Tan Toi, Chairman of the National Assembly’s Defense and Security Committee, emphasized that since the promulgation of the 2008 Road Traffic Law, road traffic safety has seen some remarkable achievements. First and foremost among these has been the continuous development of the road traffic network. During recent times, authorities have prioritized investment in and promptly put into operation key infrastructure projects for road traffic, creating conditions for economic development and ensuring national defense and security.

However, the delegation also pointed out shortcomings and limitations, such as the fact that investment and development of transport infrastructure in some localities has not yet met the transportation and travel demands of the people. Solutions to enhance the quality of automobile inspection have not been implemented vigorously; the process of vehicle inspection still occurs with errors and violations, some of which are serious enough to warrant criminal prosecution. Additionally, although there have been many innovations in the management of driver training, testing and licensing, the quality and results are still limited.

At the meeting, National Assembly Chairman Vuong Dinh Hue requested that the report clarify the comprehensive management process for all types of vehicles, including production, import, registration, circulation, and inspection, in order to ensure safety, protect the environment, and promote sustainable development. Regarding the division of investment in expressways, the National Assembly Chairman said that the report should clarify this content in greater detail and provide a comprehensive assessment of the legal system related to standards and criteria for transport infrastructure construction. “We take a ‘short-term approach’ because resources are insufficient, so investment must be divided into stages. However, the division of stages must ensure minimum conditions for operation, exploitation and safety,” the National Assembly Chairman noted.

Citing the La Son – Tuy Loan expressway, where there have been several serious accidents, the National Assembly Chairman noted that the expressway has two lanes and no emergency lane. Several expressways do not have rest stops, where long-distance drivers could rest and recuperate.

Revision of the Value Added Tax Law

That same afternoon, the NASC reviewed the draft Law on Value Added Tax (VAT) (amended). Presenting the Government’s submission, Finance Minister Ho Duc Phoc said that while the draft law still adheres primarily to the current law, it has been adjusted and supplemented for greater relevance. One notable amendment is to the scope of goods and services that are exempt from VAT.

Accordingly, the draft law removes 12 types of goods and services from the “VAT-exempt” list, including: fertilizer; machinery and specialized equipment for agricultural production; offshore fishing vessels; securities depository; organization of the securities market by a stock exchange or securities trading center; public postal services; telecommunications services; universal internet services under a government program; zoo maintenance services; flower garden and park maintenance services; maintenance of street trees; and public lighting services.

Chairman of the National Assembly’s Finance and Budget Committee Le Quang Manh said that amending and adjusting the provisions on the annual revenue threshold for VAT exemption is necessary to match the current socio-economic development context and should be specifically stipulated in the law to establish a clear legal basis. Accordingly, he requested that the Government calculate and consider relevant factors in the overall context of current policies to specify this threshold in the draft law.

During the meeting, the NASC also provided opinions on several specific issues stipulated in the draft law, such as: the scope of tax exemption, the level of revenue from the sale of goods and services that are not subject to VAT, VAT refunds; and sanctions for violations related to VAT. The NASC requested that the drafting agency take into account these opinions in order to continue refining the draft law.