Vietnam’s business startup index rises 19 places

10:00 | 06/12/2018 Economy- Society

(VEN) - Vietnam’s business startup index rose 19 places this year, moving from 123rd place to 104th, according to the Doing Business 2019 report recently issued by the World Bank (WB).

vietnams business startup index rises 19 places

Vietnam’s business environment has improved over the past five years since the government cut red tape and took steps to raise national competitiveness. However, experts at a recent conference in Hanoi said the business climate had not yet reached its targets.

Government Resolution 19 of 2014 aims to tackle difficulties for businesses and create favorable conditions for investors. The aim was to raise the country’s business environment to the same level as Singapore, Malaysia, Thailand and the Philippines.

Efforts by Vietnam’s ministries, authorities and localities to simplify business registration have enabled businesses to enter the market in a transparent and legal manner. Business registration formalities have been merged into one procedure, reducing the time required to accomplish startup procedures by five days. The business registration fee has been reduced by 50 percent, while online business registration is free of charge. The value added tax (VAT) procedure implementation time has decreased from 10 to 4 days.

Nguyen Dinh Cung, director of the Central Institute for Economic Management (CIEM), said that although it had risen 19 places this year, the startup index still ranked Vietnam above 100.

“The problem is that this index is related to many different agencies that all are waiting for reforms. In my opinion, the Ministry of Planning and Investment should be the driving force in reforming this index, not only coordinating but also pushing other ministries,” he said.

The Ministry of Finance should ensure legal, efficient VAT purchase and printing procedures to decrease implementation time from 10 to 4 days.

Director of the Ministry of Planning and Investment’s Department of Business Registration Tran Thi Hong Minh called for a plan to connect business, labor, and social insurance registration procedures online, thus laying an important foundation to build e-government and improve the efficiency of state management of business operations.

Quang Loc