New pact on better business

Workers process wooden products at a local small firm. The VCCI and municipal and provincial authorities signed an agreement yesterday to jointly create a favourable business environment. - Photo baotintuc.vn

The agreement is designed to implement Government Resolution 35 on enterprise development until 2020 by simplifying administrative procedures, increasing dialogue between businesses and authorities, among others.

VCCI President Vu Tien Loc said the resolution, which went into effect in May 2016, is expected to produce more than 100,000 new companies within a year. At such speed, 150,000-200,000 new firms will debut each year and the goal of a million by 2020 will be within reach.

He also took the occasion to call on localities to launch start-up campaigns and pledge to assist enterprises in improving their competitiveness.

Speaking at the event, Deputy Prime Minister Vuong Dinh Hue, who is also head of the Central Steering Committee for Enterprise Reform and Development, said that with the signing, all 63 localities have reached a deal with the VCCI.

The Deputy PM made it clear that the Party and State appreciate businesses and businesspeople, adding that the amendments to the Law on Investment and the Enterprise Law, as well as other laws, are also meant to generate an environment conducive to business operations.

Hue suggested building an annual business development index which would include corporate revenues and workers' income.

Since the resolution was issued, more than 9,000 new firms have been established per month. Ha Noi recorded 15,530 in the past eight months and expects to have at least 400,000 by 2020.

Early this year, the PM approved a project supporting start-up ecosystem and national renovation by 2025. The Government is preparing for proposed revisions to 15 laws regarding the business environment to be submitted to the legislature for consideration, as well as a bill to assist small- and medium-sized enterprises (SMEs), start-ups and start-up ecosystem.

Localities were asked to attract foreign direct investment, encourage trading households to register as businesses, provide more credit for SMEs, and establish venture funds at local and central levels.