City targets 500,000 enterprises by 2020
City targets 500,000 enterprises by 2020
HCM City has set a target of implementing administrative reform to reach the target of having a total of 500,000 enterprises by 2020.
At the meeting over the weekend with representatives of 150 enterprises, Dinh La Thang, secretary of HCM City's Party Committee, said that it was realistic to set such a target within the next four years.
The city's advantages and potential have not been exploited well, he said, adding that the business community should work with the government to reach the target.
Thang urged the city government to speed up administration reform, cutting red tape to create the most favourable conditions for enterprises.
Entrepreneurs at the meeting, however, said the target would be hard to reach because of red tape and the existing number of companies was still low.
Statistics released from HCM City's People's Committee show that the city has 270,000 enterprises, while the tax authority has recognised only 170,000 of them.
Nguyen Quoc Anh, chairman of the HCM City Rubber Plastic Manufacturers Association, said the city administration should support enterprises in accessing capital, land and building production chains as well as other administrative procedures and policies to help them develop their business.
Nguyen Van Be, chairman of the HCM City Business Association, said enterprises needed land, capital and technology for expansion, but a transparent business environment was also necessary.
Unnecessary certificates and administrative procedures should be eliminated, he said.
During the past two years, administrative procedures requiring additional certificates have not improved and the one-door policy has not been applied well.
Nguyen Loc, general director of Viet Nam Electric Cable Corporation, said that more than 30 per cent of the city's registered enterprises were not actually operating.
Anh said he agreed with Loc that the target to reach 500,000 enterprises was not feasible.
According to the HCM City Department of Planning and Investment, the city in the first quarter recorded GDP of nearly VND477 trillion (US$21.2 billion), an increase of 7.4 per cent compared to the same period last year.
