The total registered capital of these newly-established businesses was 768 trillion VND. The Vietnamese Business Registration Authority also revealed that the number of enterprises surged 27.8% and the amount of registered capital sharply increased 42.4% in comparison with the same period last year. In addition, 1,660 FDI businesses were established in the reviewed period with a total registered capital of 62 trillion VND or VND 37.5 billion on average.
In the first six months of this year, additional 54,500 enterprises were set up with a total registered capital of VND 427 trillion, up 20% in number and 51.5% in capital in comparison with the same period last year.
According to Ms.Tran Thi Hong Minh, director of the Vietnamese Business Registration Authority, the investors’ psychology and the way the look at market potential have improved.
The innovative contents of the Law on Enterprises and the Law on Investment, significant efforts of the Government in improving the business environment and business support are considered as the major factors making a new wave of start-ups since the second half of 2015.
The Prime Minister and the Government were resolutely determined to put the Law on Investment into reality by issuing nearly 50 guiding decrees on business conditions providing guidelines for the enterprise in doing business. These decrees have eliminated thousands of unnecessary business conditions to facilitate business development.
The Government has shown a strong determination to do away with as many business conditions as possible and further improve the investment environment to prop up firms and enhance the nation’s competitiveness.
Right after the debut of the Law on Enterprises and the Law on Investment, the MPI promptly upgraded and improved the National Information System on Enterprise Registration to meet legal requirements in the field. 2,704 business registration dossiers were processed via this system in the first half of this year, up four times against the same period in 2015. The system has contributed greatly to creat a transparent business environment and enhancing community supervision towards enterprises. In addition, the exchange information between the department of business registration and the department of tax also helps reduce the processing time of business registration to three from five working days.
In addition, the Government and ministries have seriously reviewed and streamlined unreasonable business conditions which are contradictory with the Constitution and the Law on Investment. During the enforcement of these two laws, some obstacles have arisen due to the differences with related laws on land, natural resources, environment, construction, housing, real estate and limited openness for foreign investors.
The MPI and the policy-making work group which is responsible for the execution of the two laws have identified the problems and proposed coping solutions to the Government. The MPI are also working together with elevant ministries and agencies to deal with the problems. Relevant agencies are requested to improve the legal framework and create favorable conditions for businesses in line with the Government’s resolutions 19 and 35.
Ms.Tran Thi Hong Minh said that the MPI is finalising a circular to provide guidelines related to business and investment registration procedures for foreign investors, in accordance with Article 24 of Decree No 118/2015/NÐ-CP. This is aimed at creating advantageous conditions for foreign investors while establishing their businesses in Vietnam.
