Vietnamese pavilion at an international trade fair

Private businesses contribute 40% of Vietnam’s annual GDP each year and employ millions of jobs.

Creating best conditions for businesses

In the past 9 months, 94,000 new enterprises were established, 15% higher than in the same period last year. Their total registered capital is 39 billion USD, 43% year-on-year higher. Thanks to the government’s incentives, the number of enterprises is on the rise. In Ho Chi Minh city, 30,000 start-ups were reported in September. Chu Tien Dung, President of the Municipal Business Association, said the investment environment has improved significantly: “The whole political system is keen on entrepreneurship and economic development. So, business operations are progressing well. Their contributions to the State budget and the number of newly-established enterprises are both on the rise in Ho Chi Minh city.”

Vietnamese trademarks promoted

Vietnamese enterprises, fueled by the government’s preferential policies, have established strong trademarks. Vinacafe, a famous coffee brand and company based in Bien Hoa city, has dominated the domestic market and is exported to 30 countries. Nguyen Tan Ky, Director General of Vinacafe Joint Stock Company, said: “We believe that the company’s core value lies in its strong trademark. So we have concentrated on building and developing our trademark, which is known by 80% of Vietnamese consumers. We will work to make Vinacafe a world-class brand.”

Nguyen Lien Phuong, Director of the LP Group, said his company is targeting more export markets: “We are targeting the markets in Vietnam, China, and the Middle East and expanding to other East Asian markets. We hope to create an aloe wood perfume line next year.”

Best conditions for business development

Vietnam’s macro economy has been stabilized and this year’s national GDP is predicted to grow 6.7%, much of it due to private businesses. Prime Minister Nguyen Xuan Phuc said recently that the government is committed to creating a fair and friendly business environment: “The government continues to review regulations and take steps to ease the burdens on enterprises like taxes, customs, licensing procedures, BOT fees, and the costs of logistics and public services. 2017 should be a year of reducing fees for enterprises.”

The government and private businesses are working closely together to achieve the goal of 1 million operating business by 2020.