Record 110,100 new businesses in 2016

The Ministry of Planning and Investment has just announced that 110,100 new businesses were registered in 2016, setting a record in Vietnam's economic history.

Number of newly established enterprises over the years. Graphics: Kieu Vui.

The Department of Business Registration Management (Ministry of Planning and Investment) has just announced that as of December 20, the number of newly established enterprises was 110,100, an increase of 16.2% compared to 2015.

The committed capital to be put into the market is 891,094 billion VND, reaching 8.09 billion VND for each newly established enterprise; an increase of 48.1% over the same period in 2015. The number of enterprises returning to operation is 26,689, an increase of 43.1%.

Deputy Minister of Planning and Investment Dang Huy Dong assessed the above figures as "very vivid" about the growth of Vietnamese enterprises in recent years. "This is the driving force for economic development in the integration period," he emphasized.

Meanwhile, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said that the above figures show that 2016 will go down in the country's economic history as the first year the number of newly established enterprises exceeded 100,000.

“This reflects that people have voted for the Government. Confidence in the business environment is being restored,” he added.

In Resolution 35 on supporting and developing enterprises, the Government set a target that by 2020, Vietnam will have over 1 million operating enterprises, meaning that each year there will be about 100,000 new enterprises established. To realize this goal, in the past year, the Government has made strong reforms in the investment and business environment.

Mr. Bui Anh Tuan, Deputy Director of the Department of Business Registration Management, said that the change from the approval mechanism to the silent consent mechanism has fundamentally changed the quality of public services. When notifying contents such as founding shareholders, business locations, seal samples, etc., businesses may not have to go to the business registration agency to receive the results. These results are made public on the National Business Registration Information Portal.

The Government is submitting to the National Assembly a draft Law on Support for Small and Medium Enterprises. The draft Law will include business support programs, focusing on micro-enterprises, which have difficulty accessing capital, credit, labor and other input factors without state support.

Meanwhile, President of the Vietnam Women’s Union Nguyen Thi Thu Ha said that the Central Committee is developing a project “Supporting women to start businesses in the 2017-2027 period” to submit to the Government for approval. This project aims to have 35% of the total number of businesses owned by women by 2020, out of more than 1 million businesses nationwide.

According to Zing.vn