Liberal laws send startups up strongly

21-Jul-2016 Intellasia | TBKTSG | 6:00 AM Print This Post

Nearly 106,000 enterprises have been established with total registered capital of nearly VND768 trillion (around $34.2 billion) since the revised enterprise and investment laws went into force on July 1 last year, rising by 27.8 percent and 42.4 percent year-on-year, respectively.

According to the Business Registration Agency under the Ministry of Planning and Investment, there have been 1,660 new foreign direct investment (FDI) enterprises set up with combined capital of VND62.2 trillion (US$2.8 billion) in the period.

The strong rise in startups and registered capital has resulted mainly from the liberal enterprise and investment laws. Especially, the number of startups shot up and their registered capital grew strongly in the final months of last year.

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.

A number of problems with the implementation of the two laws have arisen, especially in the fields of land, natural resources, environment, construction, housing, real estate, and services for foreign-invested firms.

The Ministry of Planning and Investment and the team responsible for the execution of the two laws have identified the problems and proposed coping solutions to the government. In addition, the minister of Planning and Investment has requested relevant agencies to improve the legal framework and create favourable conditions for businesses in line with the government’s resolutions 19 and 35.

The ministry is reviewing problems arising in the process of implementing the two laws to timely solve them.

The national business registration portal has been upgraded to meet legal requirements in the field. Since the Enterprise Law took effect, the basic information about enterprises has been publicised on the portal, including enterprise name, code, date of establishment, address, legal representative, and business sector.

The portal contributes to creating a transparent business environment and enhancing community supervision towards enterprises.

The exchange information between the national business registration portal and the tax information system has also helped reduce the time for completing business registration procedures from five to three working days.


Category: Economy, Vietnam

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