The average capital per enterprise was over VND8 billion (US$352,000), up 27.5% year on year. New enterprises created jobs for nearly 1.3 million workers. The property sector saw the highest proportion of newly formed enterprises, followed by healthcare and social assistance, and education. Ho Chi Minh City and Hanoi had the largest number of new enterprises at 36,442 and 22,663 respectively, together accounting for more than half of the country’s total. The number of enterprises re-commencing business operations also increased by 43.1% from a year earlier to 26,689.
Deputy Minister of Planning and Investment Dang Huy Dong said those were extremely remarkable growth figures for Vietnamese enterprises in recent years. They reflect the liveliness of the business environment and that new business opportunities are opening up, ensuring that the market will be more competitive and becoming a driver for economic development in the age of integration.
The phenomenal growth of newly registered enterprises is a result of efforts made to improve the business climate in recent years, especially the change in mindset of the registration agency in line with the path of building a facilitative and action-oriented government.
In addition, a conducive legal environment, policies and conditions have also been created to support the freedom to do business. In the spirit that the people are allowed to do anything not prohibited by law, the 2014 Law on Investment institutionalises a list of 267 conditional businesses and transfers the jurisdiction to issue business conditions from ministries to the government.
The standardisation and publicisation of the regulations on business conditions and the removal of more than 6,000 sub-licences have also produced positive impacts. A shorter list of conditional businesses not only opens up more business opportunities but also strengthens the entrepreneurs’ confidence and optimism.
Furthermore, administrative reform has significantly reduced costs related to joining the market and the time taken to process paperwork. The coordination between State management agencies on business registration has also been streamlined and is approaching international practices and standards.
In conclusion, Vietnam’s national competitiveness has improved markedly as seen in the record number of newly established enterprises thanks to a better business climate. The quality of business will be demonstrated by the competitiveness of Vietnamese enterprises. In addition, the national competitiveness will now be decided by the competitiveness of the entire Vietnamese business community.
Source: vietnambreakingnews.com
Key words: striking, enterprise, registration, figures
