In case the global Covid-19 situation is under control and the Vietnamese government continues with effective support measures for enterprises, the number of newly established ones in this year could be over 138,000, around the same number in 2019, according to Bui Anh Tuan, head of the Business Registration Department under the Ministry of Planning and Investment (MPI).

Since the outbreak of the Covid-19 pandemic, the Vietnamese government has been implementing a wide range of support for the business community. Photo: Pham Hung.

This would be considered a major achievement for the economy, given the fact that 111,160 new businesses have been created in the first 10 months of 2020 with a combined registered capital of VND1,594 trillion (US$68.8 billion), down 2.9% in number but up 11.1% in registered capital year-on-year.

“There have been improvements in the growth rate of newly established enterprises over the years,” noted Mr. Tuan.

While in the first four months of 2020, business creation suffered a contraction of 13.2% year-on-year, the rate later narrowed to 5.1% in seven-month period and 3.2% in the January – September period.

Overall, the situation of new business formation in the country has improved thanks to effective support policies and the containment of the Covid-19 pandemic.

Since the outbreak of the Covid-19 pandemic, the Vietnamese government has been implementing a wide range of support for the business community, with the latest move being a cut of 30% in corporate income tax for enterprises having their revenue of less than VND200 billion (US$8.61 million) in 2020.

Additionally, other supporting programs consist of a credit package worth VND300 trillion (US$12.87 billion), including a VND180-trillion (US$7.63 billion) fiscal stimulus package in forms of delay of payment of value-added tax, corporate income tax, and a financial support package for vulnerable people worth VND62 trillion (US$2.7 billion).