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Restructure economy to boost new firms: official

Shoes are made for export at Đông Ấn Economic Development Investment Company Limited in Hà Nội. — VNA/VNS Photo Trần Việt

HÀ NỘI — Favourable conditions are needed to increase the number of new businesses and startups in order to realise the target of  一 million enterprises by  二0 二0, an official has said.

The State should continue speeding up administrative reform, improving the business climate and legal framework, Nguyễn Bích Lâm, General Director of the General Statistics Office (GSO) said at a press conference in Hà Nội on Tuesday.

Due attention must be paid to restructuring the economy, equitising state-owned enterprises, luring more foreign direct investment and facilitating the development of the private sector, while enforcing the Law on Support for Small- and Medium-sized Enterprises, Lâm said.

Inspection should be strengthened to ensure firms would make reports and provide timely and accurate information for competent agencies for better management, he added.

Phạm Đình Thúy, Director of the GSO’s Industrial Statistics Department, underlined the need to increase inspections and supervision to ensure businesses operate effectively and legally.

Dialogues between State management agencies at all levels and enterprises should be conducted regularly, thus bettering the legal framework and policies to support enterprises, Thúy said.

According to the department, by December  三 一,  二0 一 七, Việt Nam had  五 六 一,0 六 四 operating enterprises, up  一 一 per cent year on year. The highest increases in the number of operating businesses were seen in Bắc Giang, Thanh Hóa, Hưng Yên, Bến Tre, Bắc Ninh, Vĩnh Phúc, Bình Dương and Đà Nẵng.

In  二0 一 七, the number of new firms set a record high of nearly  一 二 七,000, with a combined registered capital of nearly VNĐ 一. 三 quadrillion (US$ 五 七 billion), year-on-year rises of  一 五 per cent and  四 五 per cent, respectively.

Average registered capital was VNĐ 一0. 二 billion per company in  二0 一 七, increasing  二 六. 二 per cent from the previous year.

The number of enterprises resuming their operations was some  二 六, 五00, down 0. 九 per cent compared with  二0 一 六.

It also said the new firms were mostly in wholesale and retail with  四 五, 四00 ( 三 六 per cent), processing and manufacturing with  一 六, 一00 ( 一 三 per cent) and construction with  一 六,000 ( 一 三 per cent).

In term of registered capital, the property sector made up the highest portion with VNĐ 三 八 八. 三 trillion, accounting for  三0 per cent of the total. The real estate sector in  二0 一 七 attracted a large amount of capital in comparison with other sectors.

It was followed by the wholesale, retail, construction and manufacturing sectors.

The number of workers at new firms in  二0 一 七 was more than  一. 一 六 million, down  八. 四 per cent from the previous year. The manufacturing sector attracted the most workers at  四 三0, 六 二 二, accounting for  三 七 per cent of the total.

The department added that over  二 一, 六00 businesses registered to halt their operations in  二0 一 七, increasing  九 per cent over last year.

Notably, the number of sectors that had more businesses registering to halt their operations included wholesale, retail, construction and processing.

In addition, the number of enterprises waiting for dissolution in  二0 一 七 declined  四. 六 per cent from the previous year. — VNS