Jul 11, 2019 / 19:44

Vietnam launches whitebook on domestic enterprises for the first time

The Hanoitimes - The Whitebook will provide the most elaborate facts about the development of Vietnamese enterprises by economic sectors, types of businesses and localities.

The Ministry of Planning and Investment has announced the first-ever publication of the Whitebook on Vietnamese enterprises to provide a panorama on the development of domestic enterprises, VnExpress reported.
 
The first edition of the White Book on Vietnamese Businesses.  Photo by VOV.
The first edition of the White Book on Vietnamese Businesses. Photo by VOV.
The book was drafted by the General Department of Vietnam Customs (GDVC) and from now on will be issued in the first quarter annually. The 2019 online edition is slated to be released on the ministry’s portal and the GDVC's website on July 22 and the printed one will be published on August 1.

The whitebook will provide the most elaborate facts about the development of Vietnamese enterprises by economic sectors, types of businesses and localities from which, the Central Government, ministries, departments, and localities may gain a better understanding to map out strategies and planning for sustainable and effective development of domestic enterprises.

The 2019 edition comprises of four parts namely “The Context of Business Development in 2018”; “Overview of Business Development in Vietnam in 2018 and the Period of 2016-2018”; “Solutions for Enterprise and Business Development," "the Evaluation Set of Enterprise Development in 2018 and the Period of 2016-2018.”

In the period of 2016-2018, Vietnam saw the most robust development of enterprises in history with the record number and scale of newly established enterprises, the book read.

Over the past three years, there are averagely around 123,000 enterprises joining in the market annually with registered capital reaching to VND1,200 trillion (US$51.9 billion), up 49.3% in number and 156% in capital against the previous three-year period, according to Minister of Planning and Investment Nguyen Chi Dung.

With the rapid growth in scale of enterprises, the whitebook’s debut is considered a pledge from the Government, ministries, and departments in building a healthy and safe business environment.

Deputy Prime Minister Vuong Dinh Hue said that the book is a basis to assess the economic efficiency, define the business’ positions in the market and to acknowledge the operations of private enterprises and FDI enterprises as well as their contribution to the GDP, exports, and the state budget.

On that basis, Hue suggested that relevant ministries and department consider the target of increasing the number of enterprises to one million by 2020 by evaluating the actual situation of every enterprise in localities and sectors to have better support and development policies.

According to General Director of the General Statistics Office (GSO) of Vietnam Nguyen Bich Lam, the country’s total of some 5.3 million informal household businesses may contribute to fulfilling the aforementioned target since by June 2019, Vietnam has 714,755 registered enterprises.

He proposed that it is essential to take tax and accounting measures to encourage these businesses to become formalized.

However, economist Bui Trinh said that it is unreasonable and impossible to “force” household businesses to become formalized because it is not suitable with the actual conditions of Vietnam’s economy as well as the manufacturing activities of enterprises, VnEconomy cited.

Moreover, to be licensed as enterprises, the household businesses will cope with incurred costs pertaining to tax payment, setting up a corporate organizational structure with directors, accountants among others, which represent burdens for the household businesses.