Enterprise registrations drop by 22.27 percent
Enterprise registrations drop by 22.27 percent
More than 1,900 enterprise licenses have been issued in the 2014-2015 fiscal year, a decrease of 22.27 percent compared to the year before, an official report has shown.
The issued licenses comprised 372 new enterprises, 1,069 business name registrations and 467 enterprises whose license details were amended.
Combined registered capital of these enterprises reached 12.971 trillion kip, Minister of Planning and Investment, Mr Somdy Duangdy told a meeting last week.
He presented the report on the implementation of the Socio-economic Development Plan for 2014-2015 and plan for the 2015-2016 fiscal year at the three-day biannual meeting between the cabinet, Vientiane Mayor and provincial governors that closed on Friday.
Wholesale and retail enterprises along with car and motorbike repair businesses were reported as emerging businesses as they occupied the biggest percentage of 42.26 percent among new enterprises granted licenses, the minister said.
The processing industry occupied 9.70 percent followed by construction enterprises that reached 8.57 percent. Agriculture and fishery businesses represented 6.70 percent followed by transport and warehouse service provision enterprises at 5.71 percent.
Businesses offering accommodation and food services represented the smallest percentage among new enterprises, according to the minister. So far, there were 102,610 enterprises in the country, according to information from the Ministry of Industry and Commerce.
Mr Somdy said the government had formulated policies and juristic acts in an effort to promote and facilitate the operations of small and medium enterprises (SMEs).
These included a project initiated by the government in collaboration with the World Bank to facilitate easier access to finance for SMEs.
The minister said the relevant departments were preparing to organise a seminar in Vientiane to launch the project, which is aimed to provide long-term credit to new businesses as well as for those seekin g to expand.
He added that commercial banks were also being scrutinised to join the project.
In addition to the financial-access project, relevant state departments had also carried out projects that offered technical training for SME operators to strengthen their ability to run their businesses, the minister said.
The SME Promotion Department's Deputy Director General, Dr Keomolakod Sitlakone said previously the government had set up the SME promotion fund in 2010 to make it easier for SMEs to access finance. Since its establishment, billions of kip have been allocated to the fund to offer low-interest-rate loans to SMEs.
