Clearing Hurdles in Market Entry for Businesses

10:12:40 AM | 11/3/2021

Thanh Hoa province has made great efforts to improve the market entry index, which are highly appreciated by the business community. However, market entry remains quite difficult as it still takes a long time for enterprises to complete necessary documents other than business registration certification and official operation.

The Market Entry, a sub-index of the Provincial Competitiveness Index (PCI), is gauged by business satisfaction with administrative procedures such as achieving business registration, completing startup procedures, feeling the openness and transparency of business registration procedures, professional knowledge and attitude, and information technology application of business registration agencies.

In 2019, Thanh Hoa's Market Entry Index ranked No. 21 out of 63 provinces and cities, climbing 29 places with the addition of 0.76 points over 2018. Illustratively, the province had about 3,200 new companies, as many as in 2018, ranked 7th in the country. 38% of companies registered online for establishment, doubling the growth in 2018 (rising 18%), significantly reducing time and traveling costs for businesses. Business registration indicators improved. Registered capital was estimated at VND23,500 billion (US$1 billion). A new company had average registered capital of VND7.83 billion, 26.2% more than in 2018. They employed 50,000 workers, 38.9% more than a year earlier.

Following the firm direction of the Provincial People's Committee, administrative procedures for businesses have been simplified and streamlined to reduce the service time (by 30-50%) and the waiting time for business registration. In addition, business registration procedures are publicly listed at the Provincial Public Administration Service Center and are instructed clearly and fully by specialized public officers who are very effective and friendly at work. The province's efforts and solutions for a better market entry index bore fruits and gained recognition of the business community. However, market entry remains quite difficult because it still takes a long time for enterprises to complete other necessary documents in addition to business registration certification and official operation.

To further improve the Market Entry Index in the coming time, the Department of Planning and Investment will continue to review and improve service quality, support local enterprises with business registration, and standardize employees in charge of receiving applications and delivering results. Besides, the department will enhance the relationship between State agencies and enterprises; strictly prevent harassment and bureaucracy in the service of enterprises. It will also review and reduce the time of issuing permits and certificates for their quick official operations, including fire prevention, security, passport and temporary residence permits for foreign workers, environmental impact assessment, practice certificate, compliance certificate for petroleum business, and certificate of eligibility for transport business. The department will work with other relevant agencies to review investment activities initiated by enterprises and investors; review delayed, prolonged investment projects; promptly report to the Provincial People's Committee for consideration, settlement and creation of land funds for other businesses and investors with better capabilities.

In addition, the department will coordinate with business associations and local businesses to foster business and investment support and cooperation; propose enterprise development mechanisms and policies consistent with the locality; open training classes for business executives and enhance the market entry.

Source: Vietnam Business Forum