Hanoi’s rate of online business registration to total number of applications in 2016 reached 25%, exceeding the government’s target of 10 – 15%. The capital now aims to make a big jump in this aspect by targeting 100% of business registering online this year, according to the municipal Planning and Investment Department.
Illustrative photo. Source: Thanh Hai.
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Another key step was to boost efficiency in cooperation among the municipal Planning and Investment Department, the Sub-department of Taxation and the Business Registration Agency under the Ministry of Planning and Investment (MPI) to ensure the issuance of business license in a timely manner.
With such efforts, the rate of online business registration as of the end of 2017 was nearly 100%. In 2018, Hanoi ranked top nationwide in progressing online business registration as 100% of applications are submitted online.
It now takes enterprises six days instead of nine as before to complete three steps including business registration, seal sample registration and changing tax information.
According to Quan, the number of enterprises in Hanoi increased by 20,000 per year on average, representing an annual growth rate of 9 – 12%.
In the year to August 15, the number of newly established enterprises in the capital reached 17,551, accumulating a total of 270,960, of which 97% are small and medium ones. The ratio of enterprises to population in Hanoi stood at 1:33, four times the national average at 1:135.
Since July 2017, Hanoi has waived the cost of setting up new businesses through online application and provided training courses for individual households on startup and corporate governance, while the city also provides financial assistance of VND300,000 (US$12.93) for small and medium enterprises (SMEs) in business registration.
Additionally, Hanoi’s authority has given priority to supporting operational enterprises, especially in the field of industry, finance, market expansion and participating in new business models.
Hanoi has been named among Vietnam’s top 10 business-friendly localities for the first time in the provincial competitiveness (PCI) index report, claiming the 9th rank out of 63 provinces and cities, up four places compared to last year’s report.
“The recognition would serve as motivation for Hanoi to enhance governance capability for greater business and investment environments,” said, Nguyen Doan Toan, vice chairman of the Hanoi People’s Committee at the launching ceremony of the 2018 PCI report on March 28.
The result has exceeded original target of being included in top 10 PCI index ranking nationwide by 2020 set by the municipal People Council, added Toan.
