HCM City hopes to incorporate 50,000 new companies this year (2017) so that there are 500,000 operational ones by 2020, Chairman of the city People’s Committee Nguyen Thanh Phong has said.

Speaking at an online Government conference last week, he said the city could boast of many socio-economic accomplishments in 2016.

Its economic growth had topped 8.05 per cent to go past the year’s target and was the highest rate in the last five years, surpassing last year’s 7.72, he said.

The sectors contributing the most to the growth were finance-banking-insurance, trade, tourism, transport, logistics, telecommunications, information and communication, real estate, science and technology, high-tech healthcare, and education and training, he said.      

This year the city took many measures and announced many policies and incentives to support enterprises and improve the city’s business and investment climate and competitiveness, he said.

It also achieved good results in administrative operations and a breakthrough in administrative reform to create a comfortable, transparent and attractive business climate for investors, he said.

Administrative procedures have been abbreviated, especially those related to land, planning and construction, he said.

The city sent apology letters to people in case of tardiness in processing any documents, especially with respect to land and housing, he said.

It offered total credit worth 1 trillion VND (43.9 million USD) from its fund to support start-up businesses, especially those by people aged below 35.

It also provided 2 trillion VND (87.8 million USD) from the fund to a programme to stimulate investment and help start-ups buy equipment.

The city now has 290,000 enterprises. Of them, 36,000 were established in 2016, 39.8 per cent in real estate, and 18.7 per cent in trade and retail.

But only 175,000 firms are actually operational, with the number of those suspending operations or moving out of the city rising.

To achieve the new-enterprises target of, it is important to review the figures and the actual performance of the operational companies, Phong said.

VNA