Business confidence on the rise after laws passed

Hanoi (VNA) – Significant increases in the number of new businesses and investments this year indicate improvements in confidence, driven by the Government’s efforts to improve the business climate and promote entrepreneurship.

According to Bui Anh Tuan, Deputy Director of the Business Registration Department under the Ministry of Planning and Investment, more than 54,500 new firms were established in the first six months of this year, with total registered capital of 427.7 trillion VND (19.1 billion USD), rising by 20 percent and 51 percent over the same period last year, respectively.

Average registered capital rose by more than 26 percent to 7.8 billion VND.

Tuan said more than 1.2 quadrillion VND was poured into the economy in the first half of this year, 65 percent of which came from increases in the capital of existing firms, showing the willingness of investors to expand production and businesses.

Sectors that attracted businesses’ interest include property, mining, information and communications and science and technology.

Business confidence was improving significantly due to the impact of the Law on Enterprises and the Law on Investment as well as the Government’s guidelines on improving the business climate and promoting an entrepreneurial spirit, Tuan said.

In addition, the number of firms resuming operations touched a record high of nearly 15,000 firms in the first half of this year, increasing by 75.2 percent, compared to a modest rise of some 2.2 percent in the same period of the two previous years.

The General Statistics Office forecast that more than 90 percent of surveyed businesses would see increases in production, up from 81.4 percent in the first quarter of this year.

Still, the number of firms dissolved remained high, exceeding 5,500, an increase of 17 percent over the same period last year.

Tuan said firms still needed support in tackling challenges, especially in accessing credit facilities.-VNA