12:45 | 07/08/2015 Society
(VEN) - The number of businesses entering the market strongly increased in quantity and scale in the first half of this year compared to a year ago, while those going bankrupt or ceasing operation fell.
Business environment improves
According to the Ministry of Planning and Investment’s General Statistics Office, the country saw 45,406 newly established businesses in the first half of this year with total registered capital of VND282.4 trillion, an increase of 21.7 percent in quantity and 22.3 percent in capital compared to a year ago. An average registered capital of a newly established business in its period reached VND6.2 billion, a year-on-year increase of 0.5 percent.
The first half of the year also saw 10,988 businesses increase their capital by VND308.8 trillion. As a result, total newly registered and additional capital in the first half of the year reached VND591.2 trillion. The number of businesses going bankrupt or suspending operations stood at 4,708 and 27,051, a drop of 0.9 percent and 5.8 percent compared to the same period last year, respectively.
The General Statistics Office’s Industrial Statistics Department Director Pham Dinh Thuy said that thanks to strict policies by the government, ministries, departments and localities in improving the business and investment environment, the business community’s operations have shown signs of recovery after a long period of the global economic recession reflected through an increase in the number and scale of businesses entering the market and a decline in the number of dissolved and stopped-working businesses.
Pham Dinh Thuy also said that the amended Enterprise Law passed by the National Assembly that took effect in July 2014 has had positive effects, making the business environment become more open. In addition, Resolution 19/2015/NQ-CP reducing the time for business registration and tax paid has contributed to overcoming difficulties and creating favorable conditions for enterprises to expand trade and production activities.
Seeking new solutions
Although the business environment has been improved considerably, Vietnamese business competitiveness has remained low due to lack of branded products and low prestige. This will be very difficult for businesses in the process of international economic integration.
Businesses are an important part of any economy. They not only create jobs for workers but have also contributed more than 60 percent to GDP growth. Therefore, creating favorable conditions for businesses to expand trade and production activities is important. General Statistics Office General Director Nguyen Bich Lam said that promoting administrative procedure reform, simplifying tax and customs procedures, encouraging businesses to innovate in terms of technology in order to improve competitiveness, build strong brands and create high-quality products and guiding businesses to be ready for international economic integration are necessary.
According to the General Statistics Office, newly established businesses were expected to create jobs for around 651,400 workers in the first half of the year, an increase of 20.4 percent compared to a year ago.