More room for foreign investment in movies industry

The "Hanoi, Hanoi" film crew, a Vietnamese-Chinese project.

VietNamNet Bridge – On March 12, the National Assembly's Nationalities Council and National Assembly committees discussed the amendment of some articles of the Law on Cinema.

NA Vice Chairman Uong Chu Luu said the amendment aims to meet four basic requirements: Enhancing state management, ensuring Vietnam’s commitments to the WTO, building a mechanism to protect and encourage the development of the movies industry, and changing the law suitably to the development of the movies industry.

Articles to ensure Vietnam’s WTO commitments, such as film importing quotas and establishing movie joint venture firms, were agreed by most deputies. However, some said that it is necessary to have conditions, which are not contrary to Vietnam’s WTO commitments.

Notably, Vietnam will consider raising import tax rates on films from 5% to between 7-10% to protect the local movie industry.

Deputies also agreed on the draft articles that allow the establishment of join venture films with foreign partners to distribute and produce films. The capital of foreign partners in joint ventures may reach 51%. In the joint venture firms, foreigners can hold the highest position. These articles are said to be very open for foreign investors.

A new point that deputies discussed yesterday was insurance for films. Next to insurance for the whole film crew, insurance for the film is necessary because it is highly risky for the distribution of films.

However, many deputies worried that this is completely new in Vietnam so this article would be further considered.

Articles about the roles of inspectors in the movie industry were also discussed. Besides the role of inspectors of the Ministry of Culture, Sports and Tourism, movie inspectors and inspectors of local Departments of Culture, Sports and Tourism will be enhanced.

Luu assigned the Ministry of Culture, Sports and Tourism to cooperate with the NA Committee for Culture, Education of Youth and Children to review deputies’ opinions and finalize the draft amendment to give back to NA deputies before putting it on the table of NA deputies at the NA session in May 2009.

Tuan Hai