The rank of starting
a businessgone up 6 positions (from to 125 to 119) and the index of global
competitivenessgone up 19 positions in the last 5 years. According to the World
Economic Forum, if in 2010, Vietnam ranked 75/139, in 2015, our new position
was 56/140. Global innovation index as reported by the World Intellectual Property
Organization was 71/125 in 2010 and gone up to 52/141 in 2015. In the ASEAN-6
group, Vietnam is now just behind Singapore and Malaysia.
Source: World Bank, 2016According to World Bank, in 2015 Vietnam improved its credit information system by establishing a new credit bureau and made paying taxes less costly for companies by reducing the corporate income tax rate.
In 2016, the country continue tofacilitate starting a business by reducing the time required to get the company seal engraved and registered.
More progress to guarantee borrowers’ right to inspect their credit data while the new credit bureau expanded borrower coverage, are promoting the credit information system.
Regarding paying taxes, more efforts are required to make paying taxes less costly for companies by reducing the corporate income tax rate and made it easier by reducing the number of procedures and documents for filing VAT and social security contributions, reducing the number of filings for VAT and replacing quarterly filings of corporate income tax with quarterly advance payments. Vietnam shall increase the rate for social security contributions paid by employers.
Vietnam is resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, modifying the standard for commencement of insolvency proceedings, changing provisions on voidable transactions, regulating the profession of insolvency trustees and establishing the rules for enterprise asset managers.
In respect of getting electricity, the country is reducing the time required for getting an electricity connection by reducing delays and increasing efficiency in approving connection applications and designs for connection works.
Ranking of doing business of Vietnam
Indicator/Topics
2016
2015
Change in ranks
Starting a Business
119
125
6
Dealing with Construction Permits
12
12
No change
Getting Electricity
108
130
22
Regisering Property
58
58
No change
Getting credit
28
36
8
Protecting Minority Investors
122
121
1
Paying Taxes
168
172
4
Trading Across Borders
99
98
1
Enforcing Contracts
74
74
No change
Resolving Insolvency
123
125
2
Source: World Bank (2016)
These results stemmed from efforts to improve the legal framework and the administrative system in Vietnam. In the last 5 years, the Vietnam Government submitted 105 draft laws to the Parliament and issued more than 1,000 legal documents, creating more transparent legal corridors to economic activitives and business development in Vietnam. In the coming time, the country needs more efforts to improve business environment, especially in the context of economic integration, joining new generationfree trade agreements.
Thanks to improved business environment, in two beginning months of this year, the country had 13904 newly established enterprises with the registered capital of 113 trillion dongs, increased by 1% in the number of enterprises and by 45.8% in the registered capital from the same period in 2015. The average registered capital per enterprise reached 8.1 billion dongs, up 44.4%. The total registered labor number of newly established enterprises in two beginning months of the year was 198.5 thousand persons, up 0.7% over the similar period in 2015. The number of re-operated enterprises in two beginning months of this year was 7416 enterprises, up 69.5% from the identical period. (Vietnam General Statistics Office, 2016).
