Business Environment Needs Revamping

The ministry added that the country had 73,404 business start-ups with a combined registered capital of VND567.9 trillion in the eight-month period, up 19.7 per cent in companies and 50.9 per cent in value over the same period of 2015. On average, a company has a registered capital of VND7.7 billion, up 26 per cent year on year. Companies employed 857,200 workers in eight months, down 1.8 per cent year on year.

 

Nevertheless, up to 40,419 companies closed operations, up 3.5 per cent year on year. Among them, 14,419 companies registered to end operations in certain durations, up 32.77 per cent, and 25,495 companies terminated operations, down 8.3 per cent.

 

The rising in corporate dissolutions and bankruptcies in August showed tougher trends and businesses of the business community. In August, the country had 9,282 new businesses with VND80 trillion of investment capital, down 3.5 per cent in businesses and up 2.6 per cent from the previous month. Meanwhile, 5,092 companies had to stop operations in the month.

 

The increase in corporate dissolutions and bankruptcies in the context of declining registered capital of new start-ups showed that the dark side of the business and investment environment. Difficult access to capital, non-transparent business environment and cumbersome administrative procedures risked operations of enterprises.

At a conference on administrative procedure reform in Hanoi at the end of last August, the Prime Minister requested the administrative apparatus to eliminate negative acts out of production and business operations, especially in administrative bodies. He noted that the bureaucracy is now crowded but not strong. The slowness of administrative bodies in settling corporate documents drained the trust of enterprises and citizens.

 

He instructed, "Reform must be carried out from province, district and commune to grassroots units to make our people see that the bureaucracy serves the people and serves the country's development to regain their confidence. If they lose the trust, the country will barely peaceful. Confidence is gained from small things.”

 

The Prime Minister said, building a government of development-creation, integrity, aggressive action and wholehearted service to the people is the most important goal and destination in the administrative reform. This work is not easy because the essence is making fundamental changes in management methods, practices, behaviours and sense of responsibility of all individuals in the bureaucracy.

 

The most important task of the Government is to issue mechanisms, policies and laws, timely respond to policies, facilitate production and business development, and protect people and enterprises.

 

He stated, "The Government serves, not enjoy. We cannot use taxes paid by the people at will. We must continue to robustly reform public finances to use every pence of taxpayers effectively, for the people and for the society. All expenditure from the State Budget must be made legal, public and transparent. We must be responsible with the money of the people.