New wave of business investment

12:01 | 08/10/2017 Economy

The latest data on the explosion in the number of newly established enterprises demonstrates that there is a strong business wave with huge potential within the Vietnamese business community.

new wave of business investment
The explosion in the number of newly established enterprises demonstrates the huge potential of Vietnamese business environment

According to the General Statistics Office (GSO) of Vietnam, in the past nine months there have been 93,967 newly established enterprises, up 15.4% over the same period in 2016, with total registered capital of VND902.7 trillion (up 43.5%).

If adding the 21,100 enterprises that have returned to operations, the total number of additional businesses after nine months exceeds the number of over 100,000 for the whole of 2016.

In addition, the total newly registered FDI and additional FDI reached a record level of over US$ 21 billion (up 21.7%), coupled with the realised FDI capital of US$12.3 billion (up 15%).

The stock market - the thermometre of business performance - has grown impressively with a total capitalisation of 38.7%, reaching 60% of the GDP.

The Vietnamese economy has never witnessed such a strong business wave, from the determination of the central and local regulators to the strong entrepreneurial spirit of every investor and individual, even spreading to younger people who are still attending school, with a strong start-up movement gradually developing towards high quality.

The boom in the number of newly established companies has surpassed many predictions, even the most optimistic. It proves that the potential and business spirits of the Vietnamese are always good seeds and would bloom and bear fruit if there are favourable conditions in which to do so.

The quality of newly established enterprises will be advanced in the context of the Industrial Revolution 4.0 which is expanding into every corner of socio-business life. The improved infrastructure has actively supported newborn businesses, both in terms of quantity and quality, as well as their scale, efficiency and competitiveness.

The new wave of business has emerged in the context of the private business sector which has never seen such great attention from the Party and State before. The Resolution issued at the 12th Party Central Committee's 5th meeting not only affirms the motivated role of this dynamic and potential economic sector, but also identifies a range of practical and proper policies with which to promote the private sector’s development, which are clearly stated in the newly issued Small and Medium Enterprise Support Law.

In concretising the Party's policy, over the past few years, the Government has issued various resolutions on improving the business environment, reforming administrative procedures, and facilitating the development of enterprises. The facilitated business environment with increasingly healthy, equal and stable conditions created by the government, with the motto of creativity, integrity and serving, is the decisive condition for the appearance and growth of this strong business wave.

Typically, the Government has actively urged the relevant ministries and sectors to review and abolish thousands of unreasonable business conditions and sub-licences that impede the healthy development of the economy and lead to harassment and corruption.

The true quality of the remaining business conditions will play an important role in driving this new wave to new heights. Furthermore, the rising confidence in business is the surest guarantee for high and sustainable economic development.

Theo NDO