According to Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), around 1.2 million enterprises have been set up in Vietnam so far. However, only 640,000 of those are operating, with 60% reporting no profits. 

Administrative procedures remain complicated and cumbersome, hindering the development of local businesses

The majority of Vietnamese enterprises are small and medium-sized with low corporate management index, Loc said, adding that “This shows the difficulties business communities are facing”.

The country has 1.2 million businesses, surpassing the set target of 1 million by 2020, Loc said. He, however, noted that management capacity, as well as the competitiveness of Vietnamese enterprises, remained lower compared to those in many other ASEAN countries.

Loc said that cumbersome and complicated administrative procedures were among the factors affecting local firms. Chocolate products alone need 13 licenses before being sold. Yoghurt products are inspected by both the Ministry of Agriculture and Rural Development and the Ministry of Health, he highlighted.

All ministries and agencies were required to cut at least 50% of business conditions by the end of this year. But, to date, only the Ministry of Industry and Trade has completed this.

Loc suggested that localities should not only assist enterprises with difficulties but also find potential firms to provide with support measures, helping them further promote business.

Dtinews