The number of newly-established enterprises has continued to increase in the past months particularly after the effectiveness of the 2014 Law on Enterprises in early July, 2015, according to Director of the Business Registration Management Agency under the Ministry of Planning and Investment Tran Thi Hong Minh.

Photo for Illustration (Pho to: Thai Thien)

From early July to December 2015, about 50,000 enterprises were founded with a total registered capital of over VND300 trillion (US$13.5 billion), up 30% in terms of number of enterprises and up over 90% in terms of registered capital compared to the same period in 2014 thanks to significant reforms of the newly effective Law on Enterprises.

The 2014 Law on Enterprises sees basic legal changes which allow enterprises to do what is not prohibited by law, providing the direction for building regulations related to business registration.

However, Director Minh said that the Business Registration Management Agency still faces difficulties while implementing the 2014 Law on Enterprises as several legal documents on business conditions are outside of the agency's competence or yet to be amended, and there lacks a catalogue of conditions and capital ratios applied to foreign investors among others.

Minh noted that to effectively implement provisions of the Law on Enterprises, there needs to be efforts and co-ordination from relevant State management agencies including the Ministry of Planning and Investment and provincial People's Committees along with initiative from enterprises.

She also suggested promoting online business registration to reduce pressure on business registration agencies and save time and costs for enterprises.

(Source: NDO)