Vietnam has seen a sharp surge in the number of newly established enterprises since two new laws on investment and enterprises took effect on July 1, 2015.

New enterprises register at the registration management agency 

At a meeting to review the first year of the Law on Investment and the Law on Enterprises, held in Hanoi on September 20, Bui Anh Tuan, Deputy Director of the Ministry of Planning and Investment’s Business Registration Management Agency, reported that more than 105,975 newly established enterprises with a total registered capital of 767.9 trillion VND (34.28 billion USD) were set up in one year from July 1, 2015 to July 1, 2016.

The number of newly established enterprises rose 27.8 percent against the previous year while the registered capital surged more than 42 percent, Tuan reported.

The registered capital of newly established enterprises also averaged 7.25 billion VND, a year-on-year increase of 11 percent, he said.

As for foreign direct investment (FDI) enterprises, the ministry reported that 1,660 FDI firms were set up in the period, with a total registered capital of 62.205 trillion VND.

Besides the surge in the number of newly established enterprises, the new laws also contributed to enhancing the freedom of enterprises to do business in all industries and sectors that are not prohibited.

The laws have also helped enterprises save time and money by shifting the attitudes of State management agencies.

The ministry reported that the most significant change is in the time it now takes to register firms nationwide - an average of 2.9 days.

The greatest change was recorded in Ha Tinh province, reducing the process of licensing newly established enterprises to one day. The southern provinces of Tien Giang and Hau Giang followed with 1.3 and 1.32 days, respectively.

Working hours at municipal and provincial departments of planning and investment nationwide also grew 40 percent to 10-15 hours per day, according to the ministry.

VNA