Enhancing role of Vietnamese entrepreneurs in new stage of development

Outstanding Vietnamese entrepreneurs in 2016

According to official figures, Vietnam currently has more than 496,000 active enterprises, of which small and medium-sized enterprises (SMEs) make up 97%. Since the start of the year, nearly 94,000 new enterprises have been established, with registered capital totalling VND902 trillion (US$39.7 billion), up 15.4% in enterprise number and 43.5% in terms of capital over the same period last year. In addition, 21,100 have resumed their business, while those dissolving and suspending their operation number 8,736 and 49,345 respectively.

The general trend is that Vietnamese enterprises are growing in both number and quality. If Vietnam can maintain the rate of 100,000 new enterprises established each year, then Vietnam’s target of one million active enterprises by 2020 is highly probable.

Strong development investment and GDP growth is significantly bolstered by SMEs which are present in all industries and areas in the country, creating jobs for 60% of the workforce and contributing 40% of the economic output. However, there are still a small number of dishonest entrepreneurs who are involved in fraudulent activities, making fake goods and appropriating funds.

In order to further promote the key role of enterprises in national development and international integration, it is necessary to bring the Law on Support for SMEs, adopted by the National Assembly last June, into operation as soon as possible.

Meanwhile, measures must be taken to push through administrative reform, and cut bureaucracy and red tape in order to maintain the entrepreneurial spirit and encourage enterprises to expand their business.

Vietnam also has a strong contingent of hundreds of thousands of household businesses which could quickly switch themselves into enterprises if the relevant government agencies work with them in this process.

The close cooperation between the government agencies and the business community, represented by trade associations, is highly significant in helping enterprises to grow in both number and quality, towards the goal of one million healthy, highly competitive, enterprises by 2020.

Source: NDO