City targets 50,000 new firms in 2017

HCM City hopes to incorporate 50,000 new companies next year (2017) so that there are 500,000 operational ones by 2020, the chairman of the city People’s Committee, Nguyen Thanh Phong, has said.

A view of downtown HCM City at night. The city has many socio-economic achievements to boast of in many fields in 2016. VNS Photo

Speaking at an online Government conference on December 28, he said the city could boast of many socio-economic accomplishments this year.

Its economic growth had topped 8.05 per cent to go past the year’s target and was the highest rate in the last five years, surpassing last year’s 7.72, he said.

The sectors contributing the most to the growth were finance-banking-insurance, trade, tourism, transport, logistics, telecommunications, information and communication, real estate, science and technology, high-tech healthcare, and education and training, he said.

This year the city took many measures and announced many policies and incentives to support enterprises and improve the city’s business and investment climate and competitiveness, he said.

It also achieved good results in administrative operations and a breakthrough in administrative reform to create a comfortable, transparent and attractive business climate for investors, he said.

Administrative procedures have been abbreviated, especially those related to land, planning and construction, he said.

The city sent apology letters to people in case of tardiness in processing any documents, especially with respect to land and housing, he said.

It offered total credit worth VND1 trillion (US$43.9 million) from its fund to support start-up businesses, especially those by people aged below 35.

It also provided VND2 trillion ($87.8 million) from the fund to a programme to stimulate investment and help start-ups buy equipment.

The city now has 290,000 enterprises. Of them, 36,000 were established in 2016, 39.8 per cent in real estate, and 18.7 per cent in trade and retail.

But only 175,000 firms are actually operational, with the number of those suspending operations or moving out of the city rising.

To achieve the new-enterprises target of, it is important to review the figures and the actual performance of the operational companies, Phong said.

Source VNS