Easing business restrictions helps Vietnam attract investors, Thanh Nien News, 3 January 2016.

An edited extract of the original article appears below.

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The government’s efforts to simplify business registration regulations, allow foreigners to own property and improve infrastructure are attracting both local and foreign investors.

Amendments were made to the Business Law and Investment Law amid an urgent need to improve the investment climate.

The changes have had a positive effect on businesses’ operations since they took effect in July, Nguyen Huy Hoang of the National Center for Socioeconomic Information and Forecast said.

Thanks to new rules giving businesses more freedom to decide on their own operations, the number of new businesses is rising consistently.

Between July and November more than 40,800 new business were incorporated, up 30 percent year-on-year. Some 94,000 businesses have been set up this year, a record high, compared to 74,800 last year.

The amended laws allow businesses to expand into any legal activity. Earlier they had to specify their activities in license applications.

The list of illegal business activities has also been shortened from 51 to six, including wildlife trading, human trafficking and sexual services.

However, economist Pham Chi Lan said: “Many firms said they need more government support amid the international integration.”

According to the World Bank’s Doing Business report released in October, Vietnam moved up three places to 90th out of 189 economies, with improvements in the areas of business start-up, power access, and bankruptcy resolution.
The country’s score on a scale of 100 increased from 60.35 to 62.1, indicating an improved environment for businesses, the report said.

The increase in foreign direct investment has also demonstrated that Vietnam’s environment has improved.
FDI has risen 12.5 percent to $22.76 billion this year, with strong inflows into manufacturing, a key driver of the country’s economic growth, according to the Ministry of Planning and Investment…

 

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