A workshop organized by the Vietnam Chamber of Commerce and Industry (VCCI) last April showed that starting a business in Vietnam is more and more convenient than before, the administrative procedures have been significantly shortened. However, objectively, starting a business is still in the state of "easy but not easy".
Establishing a business, entering the market is favorable, but how to make the business operate, survive and develop is the challenging problem.
To survive and develop, the business community
desperately needs more support.
The convenience and speed of conducting business registration procedures helps to increase the market entry rate, stimulate the start-up environment and create more business opportunities in the economy. Many studies show that the heavy burden of administrative procedures for businesses is one of the reasons why the economy is stagnant, the business community is still weak, and the investment attractiveness is low. This is the reason why many countries, including Vietnam, are trying to reform business registration procedures to encourage the expansion of the formal economy, attract investment, and alleviate poverty.
According to the survey by VCCI, for many consecutive years, the business registration procedure has always been assessed by enterprises in the provinces and cities as the fastest and most regular transformation field; be connected to the best information system, apply the earliest communication mechanism compared to other fields. And most importantly, behind these advances is a strong shift in thinking towards serving businesses more.
Besides, there are recent improvements such as: Law on Enterprises 2020; Decree No. 122/2020/ND-CP on coordination and interconnection of procedures for registration of establishment of enterprises, branches and representative offices, declaration of employment, issuance of codes of units participating in social insurance, register to use invoices of enterprises; Decree No. 22/2020/ND-CP amending and supplementing a number of articles of Decree No. 139/2016/ND-CP regulating license fees. These legal provisions are expected to create new and more open changes in the registration of enterprises and business establishments.
Mr. Dinh Tuan Minh, Director of Market-based Solutions center for Social and Economic Issues – MASSEI said that business registration procedures in Vietnam have been shortened and cut many steps. Compared to before, the business establishment registration process has been reduced by half the procedures, the number of units a business must interact with is 4 units, many procedures have been canceled such as: the step of making a seal and notifying the seal sample, update business registration information with the business registration office, license tax, report on employees, etc.
More support is needed for new businesses to survive and develop
Many experts, representatives of businesses and business associations said that although the business environment has been improved, there are still many limitations. The number of enterprises entering the market has increased, but the quality and the number of surviving are very low. For example, Ho Chi Minh City has 500,000 registered businesses, but in fact only about half are operating. This is the same situation with other localities.
Mr. Nguyen Dinh Tue, representative of the Ho Chi Minh City Business Association, said that the State's policies are aiming to reduce paperwork, reduce costs, and reduce time for businesses, but the reality has not been achieved as expected. The vitality of enterprises after being established and entering the market is a measure of the strength of the economy, however, the number of enterprises actually operating is not high.
Mr. Nguyen Dinh Tue suggested that the business code should be removed when registering because the business paper does not do anything; It takes a lot of time to process and process documents for enterprises and state agencies. Eliminating this would save time, money and manpower.
Similarly, Mr. Nguyen Duy Hung, Vice Chairman of Dong Nai Import-Export Association mentioned the fact that according to regulations and papers, policies are much more open and favorable than before when enterprises entered the market. However, in reality, after establishing a business has to face many problems. Small enterprises, which have just entered the market, have low competitiveness and lack a lot of things for instance, human resources, technology, finance, partners, and the market, etc. In such a competitive context, enterprises will face many difficulties while trying to survive in the market.
Vi Quan
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