Vietnam looks to one million member business community

Monday, 2018-01-22 11:28:03
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Over 153,000 companies were set up and resumed operations in 2017 (Photo: VNA)
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NDO - According to the General Statistics Office, the number of newly-established firms along with firms resuming operations set a record in 2017 with more than 153,000 companies, while the number of dissolved and suspended enterprises was 60,553. This means that the business community has over 92,000 new members, which is the highest ever. The corresponding figure was 63,644 in 2016; 35,402 in 2015; 22,438 in 2014.

In 2013, the number of newly-registered enterprises was 76,955, a year-on-year increase of 10.1%, while the number of dissolved and suspended firms was 60,737, an increase of 11.9% compared to 2012. In 2013, the business community nationwide had only 16,218 new members, equivalent to 65% of the new-registered enterprises of Hanoi in 2017 (25,160 firms).

It is clear that in spite of the continuously narrowed gap between the number of newly-registered enterprises and the number of dissolved and suspended enterprises, the increase of the number of enterprises each year is quite slow and has never reached the number of 100,000.

In other words, there should be new breakthroughs with more diversified sources and new channels so that the business community nationwide (around 600,000 active members in 2017) strives to have at least one million members by 2020, over 1.5 million by 2025, and at least two million by 2030 as targeted by Resolution No.10/NQ-TW dated June 3, 2017 at the fifth plenary meeting of the 12th Communist Party of Vietnam Central Committee.

In order to put the resolution into reality, the Government and ministries should give detailed instructions and take specific actions in order to reduce administrative burdens and abuses of power at local offices, creating a level playing field amongst businesses, as well as enhance trade and investment promotion activities, and promptly apply a range of measures to remove difficulties for businesses.

It is also necessary to build a unique environment that will foster a spirit of entrepreneurship of the nation; diversify the areas and components of start-up enterprises, especially in the fields of industry, agriculture and hi-tech services with the participation of people from all walks of life.

In addition to encouraging the formation and contribution of private economic groups to State-owned enterprises, it is also important to encourage the appropriate conversion of millions of household businesses, small traders and cooperatives into small and micro businesses.

Procedures and costs of establishment and administration of enterprises should be reduced. More attention should be paid to the tax administration, land management, accounting regimes, information provision, legal consultancy and examination and inspection, whist the capacity of commercial arbitration and people's courts at all levels should be enhanced.

It is necessary to attach importance to enhancing labour productivity in order to contribute to improving competitiveness and sustainable economic development, in addition to improving institutional reform, State governance capacity, the business environment, infrastructure, and the administrative reform, among others.