Illustrative photo (Source: VNA)

Hanoi (VNA) – The number of businesses founded this year is expected to hit a record high of 94,000 firms, partly driven by untied regulations.

Statistics from the Business Registration Department, under the Ministry of Planning and Investment, revealed that since the Law on Enterprise came into force on July 1 this year, more than 40,800 businesses were founded, up 30 percent over the same period last year, with total registered capital rising by 34 percent.

Bui Anh Tuan, the department's Deputy Director, said at a conference hosted by the Central Institute for Economic Management on November 23 that the impressive hike in the number of firms founded since July implied that the new law had been welcomed by the business community and helped tackle bottlenecks in doing business.

Tuan estimated that there would be some 94,000 firms founded this year – the highest figure ever recorded.

Besides the soaring number of newly founded firms, a large number of businesses registered to increase their charter capital, reflecting their improved confidence, Tuan said.

Since July, more than 134,000 firms have registered for changes in their business operations, up a whopping 151 percent against the same period last year. Of note, one third of them increased their charter capital.

Tuan said, under the new law, the time needed for registering a business had been slashed to 2.9 days, while registration for changes in business operations could be done in 2.47 days, two days fewer than would have been needed before the law came into effect, helping businesses to save time and lower costs.

The innovation in managing business stamps was also a breakthrough in the Law on Enterprise, he said.

Still, lawyer Nguyen Hung Quang said the instruction documents must be consistent with the law.

Nguyen Thi Dieu Hong from the Vietnam Chamber of Commerce and Industry said instruction documents related to the Law on Enterprise should be revised and issued in a timely manner to avoid confusion when the existing documents expire on July 1, 2016.-VNA