Online business registration beyond expectations

The government’s perpetual efforts to improve the local business climate, remove hurdles, and reduce business costs have brought vitality to newly-established firms. Bui Anh Tuan, deputy director of the Ministry of Planning and Investment’s Business Registration Management Agency, told VIR’s Khanh Linh about the progress made, as well as the issues that still remain. The first half of 2017 saw a jump in newly-established businesses, but the rate of firms going out of business also remains high. What do you think about this? Looking on the whole period from 2013 to 2017, newly-established firms are maintaining forward growth momentum. In the first six months of this year, the number of newly-established firms rose 150 per cent, and reached nearly 300 per cent growth in registered investment capital compared to the corresponding period in 2013, while average capital size rose by a multiple of 1.8. From a macro perspective, the rate of firms going out of business is less than the rate of those entering the market. Firms exiting the market numbered 72.9 per cent of firms entering the market in 2014. This figure fell to 61.2 per cent in 2015, 57.5 per cent in 2016, and 56.6 per cent in 2017, which is positive compared to other countries that top the Market Facilitation Index. For instance Hong Kong, which ranked fourth in the ‘doing business’ category for 2017, had 144,883 new business startups last…... [read more]

A VOV reporter interviewed Nguyen Hung Dung, head of the Market Management Department under the Ministry of Industry and Trade about measures to combat smuggling, especially before the Lunar new Year festival. VOV: Does the Steering Board take any action against smuggling, counterfeit products, and consumer fraud before Tet? Mr Dung: The board has directed localities to step up inspections and oversight. Before Tet, market managers will work with relevant agencies and local authorities to control supermarkets, commercial centres, and retail markets and take fruit and vegetable samples to check pesticide content. We have found that many imported packaged foods, confectionary, and fruits from neighbouring countries are of unknown origin. We have strengthened inspections to identify shops and restaurants which do not have certificates of food hygiene and safety or sell substandard goods, such as rotten nuts, dried fruits or dirty animal fat. We will deal in a timely fashion with violations on measurement, brand names, codes, prices and industrial property rights. VOV: Can you tell us about the recent inspection conducted by your department’s task force? Mr Dung: The inspection was conducted from January 15-28 by a market management task force. They dealt with 12,023 out of 15,895 cases, including 3,015 smuggling cases, 2,012 cases of trading counterfeit or substandard products, 4,512 illegal trading cases, and 1,904 other cases, collecting more than VN28 billion. The task force also established 5 working groups to conduct inspections in certain key areas: Hanoi, Hai Phong, Lang Son, Lao Cai, Thai Binh, Nam…... [read more]

He suggested Vietnamese businesses, especially those with products sold in the US, establish their offices in the country. Although some US companies have set up their business ties with Vietnamese companies, US businesses in general lack information about their Vietnamese partners, said David. The presence of Vietnam’s companies in the US will expand new business opportunities for US firms that have yet entered Vietnam’s market. The Vietnam Commerce Centre, which was set up by BAOOV US branch in Baltimore city of Marryland State, will assist Vietnamese companies in their efforts to do business in the US, he said. David also stated that US branch members will also share their experiences in successful business in the US; help Vietnamese companies in business registration and application for visa extension and provide them with business and marketing training and seek contracts with US importers. Founded in April 12, 2010, the branch has established its representative offices in Virginia, Texas and California. It will double its staff from the current figure of more than 100, connect small and medium sized businesses of the US and Vietnam to boost trade ties, help Vietnamese businesses set up offices in the Vietnam Commerce Centre in the US and form a group of Vietnamese scientists working in the US to promote bilateral scientific and technological cooperation.... [read more]

According to the indictment, Quan, 43, born in the central province of Nghe An, set up Vietnam Solution Co. Ltd in April 2001 with its headquarters in Cau Giay district, Hanoi. Under its business registration, the company operated in a range of activities including investment consultancy, labour and vocational training services, electrical engineering, consultancy and technology transfer in agricultural and rural development. The company changed its business registration certificate 13 times, with the last adding data updating, searching, storing and processing to its portfolio. During the operation of the company, Quan, as the company’s director, instructed his accountant Pham Thi Phuong to make fake contracts and buying bogus added-value tax invoices in order to evade corporate income tax. After the open hearing, the board of judges decided to refute Quan’s appeal and confirmed the 30-month sentence handed down in the first trial on October 2, 2013. The court also declared that Quan’s company must pay back corporate income tax amounting to VND645 million (US$30,700) it evaded during 2010-2011. It was also fined more than VND1.29 billion (US$614,280).... [read more]

These firms advertise their services with tempting tag lines saying, “Though you are not geniuses, you can become the parents of ones,” or “A 95% accurate representation of your future can help you achieve success sooner,” which have attracted many parents across the city. After contacting a company in Phu Nhuan District, Tuoi Tre (Youth) newspaper reporters were told by a female receptionist that they will have someone arrive at the client’s house to collect their fingerprints, which will then be analyzed by a piece of Malaysian-developed software. The service costs a total of VND2.8 million (US$124.2) and the process takes 10 days, the receptionist said. The results offer 95% accuracy, which has been certified by some American institutes as well as confirmed by surveys conducted by the firm, she added. An employee from another firm called K. in District 10 revealed that her company used Singaporean technology as the basis for a 40-page long report provided to clients. An employee is pictured analyzing a client’s fingerprint at a firm in Ho Chi Minh City. Photo: Tuoi Tre The entire expense is VND3.1 million (US$137.5) and results are claimed to be 95% accurate, according to the employee. “Our service is carried out by qualified employees, who were trained in Singapore, and has been offered to over 3,000 clients,” she said. The analysis is said to point out the children’s strengths and weaknesses, personalities, ability to lead, manage problems, use languages and other individual personality differences, a staff member from a…... [read more]

Vietnam’s auto industry saw its highest level of foreign direct investment thanks to loosened tax policies and rising personal incomes. In 2016, total foreign direct investment capital of Vietnam reached USD24.4bn, an increase of USD1.7bn on previous year. The disbursement rate also increased with USD15.8bn disbursed compared to USD14.5bn in 2015. Manufacturing industry continued to top the list as FDI increased annually with over 1,000 investments. The auto industry rose from fourth or fifth rank to second, above real estate, as it also received a substantial amount of investments last year with over 505 projects. According to the Business Registration and Management Agency, loosened tax policies but more importantly, business opportunities from Vietnam's auto market due to rising personal incomes contributed to this change. Many firms have expanded their businesses with more branches and agencies instead of expanding production such as Mercedes, Audi, BMW and Ford. Mercedes opened 12 more distribution centres and Toyota increased its distribution outlets to 44. Ford opened 7 more distribution centres to 27 last year. Many other high-end brands also have plans to expand business in Vietnam even though they do not have local manufacturing factories such as Porsche and Audi. Car prices have dropped sharply and firms have to face tougher competition. Firms may not assemble cars in Vietnam but import completely built units when duties on imports, or completely built units from Southeast Asian countries is exempted in 2018. However, 12 of 63 provinces and cities failed to attract any FDI projects last…... [read more]

Jan-Oct budget collections up Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC - State budget collections in the first ten months of this year grew 6.3% year-on-year to VND777 trillion (around US$35 billion), and the increase was contributed much by enterprises, according to the Ministry of Finance. The figure in the ten-month period was equivalent to 85.3% of the full-year target and included nearly VND95.6 trillion in October. Notably, the tax and fee revenue from domestic sources last month accounted for VND75 trillion of the total amount, up 78.6% over September. Compared to last month, the revenues of corporate income tax, value added tax, and personal income tax rose by some VND21 trillion, nearly VND4.2 trillion and around VND2.7 trillion respectively. Domestic sources contributed VND578.2 trillion in the first ten months, equal to 90.5% of the full-year target and increasing 16.2% year-on-year. This growth was higher than the year-on-year rates of 1.3% in 2012 and 11.2% in 2013 but lower than 16.5% in the same period last year. Tax and fee revenues from many sectors beat the year’s targets. In particular, the environment protection and agricultural land use fee collections were 58.3% and 33.3% higher than the year’s projections while revenues from real estate and business registration were 28.9% and 15.6% higher than targeted. In contrast, tax collections from crude oil in January-October fell by 37.7% year-on-year to VND55.5 trillion, equivalent to 59.7% of the year’s target. State budget spending was VND918.4 trillion from January to October,…... [read more]

In the first quarter of this year, Hanoi Department of Planning and Investment granted more than 3,400 licenses for business establishment. Nguyen Tien Hoc, the department’s deputy director, said Hanoi is the first locality to apply the revised 2014 Enterprise Law in granting business certificates. He said the law has created the most favorable conditions for enterprises to quickly complete required procedures and is one of measures to improve Hanoi’s competitiveness index. Hoc said Hanoi has asked relevant agencies, especially the Department of Planning and Investment, to review all procedures for business registration. As a result, it takes only three days for a business to get its license. This is an important condition for enterprises to short the time for their market entry and help Hanoi have a greater amount of newly registered companies. Over the past 20 years, Vietnam’s business registration procedures have witnessed much progress, satisfying the national economy’s need, particularly the strong growth of the private economic sector and attraction of foreign investment companies. The business registration timelines were shortened from 15 days in 2008 to 5 days in 2013 and 3 days by July 1st, 2015. Nguyen Van Giap from Hanoi’s Bar Association noted that improvements in Vietnam’s administrative reforms have created more opportunities for enterprises and better conditions for businesses market-entry. The clearer the reform is, the less cost and time firms will suffer, he added. The Ministry of Planning and Investment is implementing a project to expand the national business registration system under which…... [read more]

Agreements on non-refundable aid and technical assistance were signed in Hanoi on July 25 by Nguyen Van Binh, Deputy Governor of the State Bank of Viet Nam (SBV), and Ayumi Konishi, Country Director of the Asia Development Bank (ADB) in Vietnam. The new technical assistance grant of US$500,000 will help prepare the second SME development programme to build on the first SME development programme with the aim of accelerating further improvements in the business environment in Vietnam. A package of policies will be formulated for implementation during the 2008-2010 period based on Vietnam’s five-year SME development plan. An assessment will also be made of constraints to help the private sector further develop. In addition, the Japanese government also provided another technical assistance package of US$600,000 to help Vietnam develop a “skills enhancement project” with the aim of enhancing vocational skills training to better respond to the demand for skilled workers in the key industrial and service sectors. Speaking at the signing ceremony, SBV Deputy Governor Nguyen Van Binh highly valued the Japanese government’s assistance in recent times and emphasized that the Vietnamese government always attaches important to developing SMEs which play a key role in the national economy. In recent years, Vietnam has undertaken a number of commendable reforms to improve the business environment for SMEs including the establishment of a policy framework for SME development in the 2006-2010 period, simplification of business registration and licensing systems, and improvement in SMEs’ access to land, finance, and technologies.... [read more]

A project to provide technical assistance to reform business registrations was signed on August 6 between the Ministry of Planning and Investment (MPI), the Norwegian Embassy and the United Nations Industrial Development Organisation (UNIDO). In the first phase, the project will receive between US$4.2 – 5.2 million from the Norwegian Government and US$1 million from UNIDO. According to Deputy Minister of Planning and Investment Truong Van Doan, the reforms will reduce the cost and time it takes to complete all business, tax, statistics and seal procedures by placing all pre-registration and registration requirements on one application form. He added that the project will also provide the MPI with advice on how to establish a National Business Registration System at central level and offer full computerisation of business registration processes nationwide. The Agency for the development of Small and Medium-sized Enterprises Development under the MPI will bear the responsibility of implementing the three-year project, in co-operation with the Tax Department under the Ministry of Finance, the Ministry of Public Security and the General Statistics Office at central level, as well as business registration offices in 63 provinces.... [read more]

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