Number of new companies grows

11:12 | 29/06/2018 Investment

(VEN) - In the first five months of 2018, 52,322 new companies were established nationwide with total registered capital of VND516.9 trillion, a rise of 3.5 percent in number of companies and 6.4 percent in registered capital compared with the same period last year. These data reflect the improvement of the investment and business environment.

number of new companies grows
The number of new companies established in 2018 are forecast to exceed that of 2017

Data from the General Statistics Office of Vietnam under the Ministry of Planning and Investment show that 11,027 new companies were established nationwide with total registered capital of VND104.8 trillion in May 2018, averaging VND9.5 billion per company, 3.3 percent higher compared with April.

In addition to newly registered companies, existing businesses registered to increase their capital by a total of VND902.2 trillion.

In 2017, more than 127,000 new companies were established nationwide, up 15.2 percent compared with 2016. Economists forecast the number of new companies established in 2018 will possibly exceed that of 2017. The average amount of registered capital per company is also forecast to increase.

Nguyen Trong Cu, for example, returned to Vietnam to invest in high-quality farm produce after 30 years living in Germany. From his point of view, the Vietnamese government has improved policies and laws to facilitate business investment. Nguyen Dinh Cung, Director for the Central Institute for Economic Management, said Government Resolution 19/NQ-CP implemented four years ago has helped improve the business and investment environment. Domestic companies are allowed to do business in any fields not forbidden by law, while administrative reforms have helped save time and money for businesses.

In May 2018, the government issued Resolution 19/2018/NQ-CP on further implementation of major measures to improve the business environment and enhance national competitiveness. Under the resolution, 50 percent of unnecessary business conditions will be eliminated; the list of goods subject to specialized inspections will be cut by at least 50 percent; the percentage of imported goods subject to specialized inspections during the customs clearance process will be reduced from 25-27 percent at present to below 10 percent.

The resolution also requires state authorities to intensify the application of information technology in dealing with administrative procedures and providing online public services.

Economists believe the resolution will help further improve the business environment, creating more opportunities for businesses to expand operations, contributing to Vietnam’s socioeconomic development.

Given positive changes in the business environment, economists forecast the number of new companies established

in 2018 will possibly exceed that of 2017 (127,000).

Nguyen Hoa