return icon

Vietnam targets 2.1 million enterprises, 70 with capitalized value over US$1 billion

The Ministry of Planning and Investment is working on a resolution to support and develop Vietnamese businesses for the period of 2021-2025, replacing Resolution No. 35/NQ-CP dated May 16, 2016.




Reviewing enterprise development in Vietnam in 2016-2020, the Ministry of Planning and Investment revealed that on average the growth rate of the number of newly established enterprises reached 10.5%/year, double that of 2011-2015; and the growth rate of active enterprises in this period was 15%, up about 80% compared to the 2011-2015 period.

The average investment capital for production and business of Vietnamese enterprises in 2016-2020 reached about VND34.3 quadrillion/year, an increase of 82% compared to 2011-2015. Currently, there are about 31 items with export turnover of over $1 billion/year.

The number of employees working in these enterprises accounted for about 27% of the labor force of the whole society, attracting an average of 14.5 million laborers/year, an increase of 24.4% compared to 2011 2015.

However, Vietnamese businesses have not yet fully promoted their role and potential. The private sector enterprises are mainly small and micro scale, the level of corporate governance is still poor, and there is a lack of high quality, skilled labor.

According to the Vietnam Business White Paper 2020, in the period 2016-2020, about 15,000 entreprises were dissolved yearly in the country, an increase of 58.4% compared to 2014-2015.

Since the beginning of 2020, Vietnamese enterprises have been seriously affected by the Covid-19 pandemic. Besides, short-term support solutions, it is also necessary to have medium- and long-term assistance, creating a foundation for the business sector to be able to adapt to the new situation and restore production activities.

In 2020, Vietnam did not reach the target of having 1 million enterprises. However, the Ministry of Planning and Investment still set another ambitious goal, which is to accumulate more than 2.1 million businesses by 2025, of which about 710,000 would be newly registered in the 2021- 2025 period. This goal is based on the average growth rate of newly established enterprises from 2016 to 2020 and the impact of the pandemic on the enterprises’ ability to recover production and business.

As Vietnam still lacks internationally-competitive corporations, the Ministry of Planning and Investment wants to have about 70 groups with capitalized value on the stock market reaching over $1 billion USD, and about 10 innovative startups valued at over $1 billion. And every year, the number of enterprises named by world prestigious ranking organizations for the highest brand value would rise by 10%.

To achieve these goals, the draft Resolution compiled by the Ministry of Planning and Investment highlights solutions on administrative procedure reform, improving the business investment environment, focusing on solving bottlenecks and inadequacies that hinder business development, creating an equal business environment.

The Ministry of Planning and Investment proposes research in policies to support interest rates for businesses in a number of industries heavily affected by Covid-19. Accordingly, these firms will enjoy a lending interest rate lower than the market interest rate of 3-4%/year for a period of a year. With an interest rate support budget of about VND 3 trillion, businesses can access a credit package of about VND100 trillion with a preferential interest rate of about 3-4%/year, compared to the current level of about 7-8%/year.

For industries most seriously affected such as aviation, tourism, and education, the Ministry believes that it is necessary to have adequate relief packages. The Government needs to have a preferential loan credit package with preferential interest rates in the form of refinancing with 0% interest rate for businesses in these fields from 6 months to 1 year. It is estimated that the credit package for aviation enterprises alone is about VND 10,000 billion.

State-owned enterprises (SOEs) also have their own solutions to promote efficiency. The Ministry of Planning and Investment proposes a mechanism for recruiting and appointing managers of SOEs through competitive, public and transparent recruitment exams; renewing the management of staff, especially senior staff, by recruiting or hiring high-quality staff, including foreign CEOs; and developing a mechanism for selecting and paying salary to CEOs of SOEs according to market rules and business performance of SOEs.

Luong Bang

Private sector: the driving force for recovery and breakthrough

Private sector: the driving force for recovery and breakthrough

Economic experts say that for over 30 years of development, Vietnam has not yet built a strong team of private enterprises which play the role of a "launch pad" for the country's economic development.  

SMEs need State assistance

SMEs need State assistance

Small and medium-sized enterprises (SMEs) are in dire need of financial resources to maintain and restore operations.  


Discovering craft villages in Buddhist centre in Quang Ninh

Coming to Yen Tu relic site in Quang Ninh province – Vietnam’s major Buddhist centre, tourists can also experience traditional crafts such as making hats, bamboo handicrafts, and wood carvings.

Ministry drafts mechanism to adjust average retail power price

The Ministry of Industry and Trade (MoIT) is drafting a Prime Minister's Decision on the mechanism for adjusting the average retail electricity price.

Foreign investment disbursement hits record high in nine months

Disbursement of foreign direct investment (FDI) in the first nine months of this year reached 15.4 billion USD, up 16.2 % year-on-year and marking a record high, a report from the Foreign Investment Department (FIA) has shown.

Foreign Minister Bui Thanh Son pays visit to Germany

Minister of Foreign Affairs Bui Thanh Son paid an official visit to Germany from September 26-27 at the invitation of his German counterpart Annalena Baerbock.

2,500 children suffer from cancer in Vietnam every year

The Cancer Centre under the National Paediatrics Hospital, revealed the information in the programme "Con thuyền mơ ước" (Ship of Dreams) to improve people's awareness of children's cancer on Sunday in Hanoi.

New Vietnam-Japan cooperation era: Japanese Vice Minister of Defense

“Let's make 2023 the year that marks the beginning of a new era for both Japan and Vietnam," said Japanese Vice Minister of Defense Yasuhide Nakayama in a talk with VietNamNet.

Challenges ahead for Vietnam this year

“Pressure”, “increased difficulties” and “high risks and challenges”: these are the words used by the Minister of Planning and Investment to describe how hard it will be to fulfill Vietnam’s growth goals this year.

Some industries lack orders, others cannot take more

While woodwork companies are lacking new export orders amid high inflation in the US and Europe, food-processing companies are not receiving new orders because of rising input material prices.

Wholesale and retail sectors lead in new foreign investment approvals

The wholesale and retail industries took the lead in new foreign-invested projects in the January-September period, according to the Ministry of Planning and Investment.

Vietnam cracks down on IUU fishing ahead of EC inspectors’ visit

Deputy Prime Minister Le Van Thanh has ordered strengthening inspections to ward off illegal, unreported and unregulated (IUU) fishing as European Commission (EC) inspectors are coming to Vietnam in October.

Phuoc Thinh to represent Vietnam at Mister Tourism World 2022

Vietnamese model Phung Phuoc Thinh is set to compete for a title at Mister Tourism World 2022 due to take place in the Philippines this December.

Vietnam, Kazakhstan to open direct flights in October 2022

The Civil Aviation Committee of Kazakhstan has officially licensed Vietjet Air to launch direct flights between Vietnam and Kazakhstan.

Vietnam among seven economic wonders of worried world: Financial Times

A writing published by the London-based Financial Times on September 26 described Vietnam as one of the seven economic wonders of a worried world.

UNICEF vows to support Vietnam in response to Typhoon Noru

UNICEF Vietnam expressed its concern over children and families in the country vulnerable to Typhoon Noru, saying it stands ready to support the Government of Vietnam in responding to the most powerful storm to hit Vietnam in 20 years.

President Nguyen Xuan Phuc attends state funeral of late Japanese Prime Minister

Politburo member and President Nguyen Xuan Phuc led the Vietnamese delegation to attend the state funeral of late Japanese Prime Minister Abe Shinzo in Tokyo on September 27.