Macroeconomic Stability Supports Businesses

Source: Pano feed


With firm governance, the Government of Vietnam as well as Prime Minister Nguyen Tan Dung reaffirmed the need for continued improvement of the investment environment and business competitiveness, as well as support for enterprises to deal with difficulties to boost business development. Businesses still in difficulty

According to the Business Management Department under the Ministry of Planning and Investment, Vietnam had 6,899 new business start-ups with a total registered investment capital of VND45,825 billion in February 2015, up 0.47 percent in businesses and 44.6 percent in investment value against January. On average, a project has an investment capital of VND6.6 billion in February, up 43.5 percent from the previous month. New companies registered to employ 93,647 workers in February, down 9.5 percent over January.

However, the country also saw 1,062 companies end their operations in February, an increase of 6.9 percent over January, while 4,391 businesses registered to temporarily halt their production and business activities. A total of 1,504 companies registered to resume operations after temporary halt of operations in February, down 47.6 percent in comparison with January.

Business operations were optimistic in the first two months of 2015. So far, a total of 13,766 enterprises registered for establishment with a total capital of VND77,526 billion, up 26.6 percent in enterprises and 23.3 percent in capital value over the same period of 2014. The total new investment capital registered by fresh and existing companies reached VND184,100 billion in the first two months of 2015. A total of 197,158 employees were recruited in the first two months, 19 percent more than the corresponding period of last year.

The Central Highlands was the only locality to see a drop in business start-ups (down 44.7 percent) from a year earlier while others witnessed a growth, with the Red River Delta region taking the lead (up 41.9 percent). By industry, health and social support fields had fewer new companies registered while arts, amusement, real estate, agriculture, forestry and fishery sectors saw an increase.

Troubleshooting solutions from Government

Being fully aware that the health of the business community has a direct, profound impact on social and economic aspects, right from the first cabinet meetings of the year, Prime Minister Nguyen Tan Dung directly guided and urged ministries, branches and localities to make a strong effort and adopt unified solutions at the highest level of endeavours to achieve and exceed plans set for 2015 – a very important, significant year. It is vital to create the most favourable conditions for enterprises to do business because this is a decisive factor. The manpower supply must be guaranteed enough, particularly for industrial parks. As these are hard tasks, we need to take many unified actions at the same time. But, the first tasks are improving the business environment, reforming administrative and land procedures.

Besides, the Government will take measures to maintain and sustain macroeconomic stability and stabilise exchange rates and interest rates. The Government will also use policy regulatory instruments to monitor and reduce interest rates for businesses.

The Prime Minister also stressed restructuring tasks in 2015, with SOE restructuring placed atop. Equitisation and stock listing need to be accelerated to improve the performance of SOEs let them operate in a full market economy. Weak, loss-making banks will be reshuffled and merged. Bad debt ratio will be driven to below 3 percent by the end of 2015.

Anh Phuong

Đăng ký: VietNam News