Startups hit all-time highs
The number of startups has hit all-time highs since the Enterprise Law took effect in early July last year, according to the Business Registration Management Agency under the Ministry of Planning and Investment.
Between July 1, 2015 and July 1, 2016, 105,975 firms conducted business establishment procedures, up 27.8% from a year earlier. Their chartered capital totaled VND4,600 trillion (US$206.3 billion), up a staggering 619% from the previous year.
Bui Anh Tuan, deputy head of the agency, told a review conference on the implementation of the enterprise and investment laws in Hanoi on September 20 that with around 9,000 newly-established enterprises a month, startups are expected to hit 100,000 this year. Tuan said that the Enterprise Law is a source of encouragement for people to set up businesses and that management agencies have supported firms to conduct paperwork more easily.
It takes 2.9 days to handle business establishment paperwork and nearly 86% of submitted documents are accepted. Results of 89% of files are given to firms on schedule.
In Danang City, an officer handles 670 business registration files while 40% of enterprises in Hanoi submit files online. Ha Tinh Province gives financial support of VND2-3 million to many firms to buy signboards and does not collect fees.
Tuan said nearly 178,000 companies informed the number of seals and their plans to manage these seals. Management agencies have yet to detect any fraud or disputes over the use of seals.
He said management agencies reported a 40% leap in workload compared to the time before July 1 last year.
In this year’s first half, there were over 285,000 business registration files and an officer had to deal with 551 files.
In HCM City, a staff must handle 1,712 files and the figure is 1,127 files in Hanoi.
