Record of one more business in less than 5 minutes

"2016 will go down in the country's economic history as the first year that set a record of over 100,000 new businesses being established," said Mr. Vu Tien Loc.

Speaking at the National Assembly's working session on November 2, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI)Vu Tien Loc said, inIn the first 10 months of the year, the whole country had more than 91,000 newly registered businesses, on average less than every 5 minutes there was a new business.

"At this rate, 2016 will go down in the country's economic history as the first year to set a record of over 100,000 new businesses being established," said Mr. Loc.

According to the Chairman of VCCI,Although confidence has been aroused and the national startup atmosphere has begun, the economy and the business community are still facing enormous difficulties and challenges. For example, regarding bad debt,The Government's economic restructuring plan for the 2016-2020 period aims todown to below 3%, "this is necessary but the solution is very vague".

Mr. Vu Tien Loc speaks in parliament

Participating in the discussion, many delegates said that the State needs to promote equitization, limit administrative intervention in the economy, and improve the business environment so that the goal of one million enterprises can soon become a reality.

According to delegate Pham Quang Dung (Nam Dinh),State capital in enterprises is currently estimated by experts at about500 billion USD. "If we reallocate this resource, by 2020 we will have about half or one-third, which will create a very good boost for growth," Mr. Dung said.and pointed out that recently the divestment of capital in state-owned enterprises has slowed down, the reason being "We just shout in general terms, without any specific goals.

The Nam Dinh delegate suggested that the National Assembly should set out a roadmap for each year of 2017, 2018 and 2019 to divest capital from state-owned enterprises with a certain value, to avoid the situation where the number of equitized enterprises completed well, but in reality each enterprise only sold about 3%. "If people do not want to equitize, they will give all kinds of criteria, it is impossible to sell," said Mr. Dung.

Delegate Pham Quang Dung (Nam Dinh). Photo: NA

Also referring to equitization, delegate Nguyen Thai Hoc (Phu Yen) said thatThe number of equitized enterprises is large, but the rate of capital sold is low, which is a sign of negativity and loss."People strongly agree and support the Prime Minister when he affirmed that the Government saves every penny of people's tax. So how will the billions of dong lost in the equitization process be considered and resolved?", Mr. Hoc said and proposed.The Government is requested to direct inspection to clarify and handle violations and recover lost people's money.

According to delegate Nguyen Si Cuong (Ninh Thuan), normally, the divestment of state capital at the local level is chaired by the Department of Finance, which decides which enterprises are valued and how they are valued. For example, if the remaining value of an enterprise is determined to be 100 billion, but the Department "judges" it to be only 70 billion, the enterprise must adjust accordingly.

“So who benefits from the difference between the real and adjusted values? The policy is correct but the profiteering is not small, the State loses a lot of capital through equitization, just inspect some newly equitized enterprises to see clearly”, said delegate Cuong.

According to VNE