Experts believe these positive results are due to a 2015 enterprise law. After years of working for other businesses, Mạnh decided to start his own business, employing about 20 workers. Though his company is still new, he has received a lot of orders from customers. Now Manh only needs to focus on expanding the company's production.
"There is a lot of potential in the domestic and foreign markets. The government also encourages young people to establish enterprises, since it has simplified the process. I hope that the banks will grant more loans so businesses are able to expand", said Nguyen Xuan Manh, Director, Manh Tien Enterprise, Hung Yen Prov.
Five months after the new enterprise law took effect on July 1, nearly 41,000 new businesses have been registered, a 30 percent increase over the same period last year. The majority of newly registered enterprises are in trade and manufacturing.
"The business community is very active; they have now started investing more in education, healthcare, manufacturing, and exports. Those sectors produce goods for the community, which is exactly what we need", said Dang Huy Dong, Deputy Minister, Ministry of Planning and Investment.
Along with the rise in new businesses, the number of businesses increasing their capital is also growing. However, from January to November, 62,000 businesses had to suspend their operations due to losses, an increase of 21 percent over the same period last year.
"There are still some issues with the procedures for enterprises, such as the registration process, land hiring, and credit. Global integration requires us to enhance our business environment, or enterprises will face difficulties in 2016", said Cao Viet Sinh, member, Advisory Council for monetary and financial policies.
Administrative reform, such as shortening the time needed to register a new business to 2.9 days, and encouraging new startups, has given a huge boost to the number of new enterprises. This in turn enhances the business environment and the economy in general. Newly established businesses have helped created 1.3 million jobs in 2015, an increase of nearly 33 percent over the same period last year.
