Illustrative photo (Photo: VNA)
Hanoi (VNA) – The corporate profit growth stood at 7.5 percent from 2010 – 2015, falling 60 percent from the rate of the 2005-2010 period, according to the General Statistics Office under the Ministry of Planning and Investment.

According to Pham Dinh Thuy, Director of the Office’s Industrial Statistics Department, the global development crisis has taken a toll on the operation of Vietnamese firms, despite numerous tax incentives offered by the Government.

The total pre-tax profit of businesses reached 552.7 trillion VND (24.31 billion USD) in 2015.

From 2000 – 2015, the corporate profit grew 19 percent per year, while the capital and revenue rose 22.8 percent and 21.6 percent, respectively.

In 2015, enterprises contributed 746 trillion VND (33.61 billion USD) to the State budget. On average, the business sector’s contributions to the budget grow 18.2 percent year on year, lower than the growth of capital, revenue and profit.

According to a representative from the GSO, 97 percent of enterprises are small- and medium-sized, with out-of-date technology, resulting in the sluggish growth of corporate profit.

The number of newly-established firms surged in the first quarter this year, however, the GDP grew slowly because most of them haven’t yet operated and contributed to the economy.

Moreover, 59 percent of the enterprises set up in 2016 are yet to generate revenue. So far, only 570,000 firms have really operated and contributed to the economy.

However, experts hope the newly established firms, once operational, will contribute greatly to the economic growth in the coming time.

To improve the operational efficiency of businesses, the Ministry of Planning and Investment is completing the Law on Small- and Medium-sized Enterprises (SMEs) to better support their development.

It is also developing a project to reduce production costs for enterprises, thus enhancing the competitiveness of the economy.

The ministry will work with relevant bodies to complete legal framework on conditional business sectors and promote online administrative services to save time and cost for enterprises.-VNA