Illustrative image (Source: VNA)

Hanoi (VNA) – Favourable conditions are needed to increase the number of new businesses and startups, thereby realising the target of 1 million enterprises by 2020, an official has said.

The State should continue speeding up administrative reform, improving business climate and legal framework, Nguyen Bich Lam, General Director of the General Statistics Office (GSO) said at a press conference in Hanoi on February 6.

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

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

Pham Dinh Thuy, 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, Thuy said.

According to the department, by December 31, 2017, Vietnam has 561,064 operating enterprises, up 11 percent year on year. The highest increases in the number of operating businesses were seen in Bac Giang, Thanh Hoa, Hung Yen, Ben Tre, Bac Ninh, Vinh Phuc, Binh Duong, and Da Nang.

In 2017, the number of new firms set a record high of 126,859, with a combined registered capital of nearly 1,295 trillion VND (57 billion USD), year on year rises of 15 percent and 45 percent.-VNA