HANOI: Vietnam has seen a big increase in the number of new companies in the past two months after the introduction of more open and simple business laws.
The General Statistics Office reported that 9,301 new businesses were established across the country in August, with a total capital of VND55.2 trillion (US$2.46 billion), up around 41 percent from the previous month.
That means more than 300 businesses were launched in Vietnam every day. Compared to August 2014, the number of new businesses increased 84 percent and the registered capital 102.4 percent. The office also reported a 66.2 percent year-on-year increase in the number of new businesses in July, when the amended Business and Investment Laws took effect.
The amended laws allow businesses to expand their activities as long as what they do is not illegal. Earlier, companies in Vietnam had to specify exactly their business activities in their business license. The list of illegal business activities has also been shortened from 51 to 6, including wildlife trading, human trafficking and sex services.
Tran Thi Hong Minh, an official from the Ministry of Investment and Planning, said the figures showed that “the new laws have been well received by the business community and are having positive impacts on the business environment.” Statistics also showed that 7,595 businesses suspended their operation in August, up 28 percent from the previous month, and 834 businesses shut down, up 11.5 percent.
