VINACHEM

Vietnam aims to increase new and returning businesses by at least 10% in 2025, driven by reforms to simplify regulations and enhance market competitiveness.

The Vietnamese government has set an ambitious goal for 2025: a 10% increase in the number of businesses entering or re-entering the market, including startups and companies resuming operations.

Alongside this, it aims to limit the rate of market exits to less than 10% compared to 2024. This strategy is part of a broader effort to improve the business environment and enhance the nation’s competitiveness on the global stage.

Reforming the business landscape for sustainable growth

Under Resolution No. 02, the government has outlined a comprehensive set of initiatives designed to strengthen Vietnam’s appeal as a destination for business and investment.

The resolution emphasizes reducing compliance costs, ensuring regulatory safety, and aligning domestic practices with international standards.

Efforts will focus on empowering local authorities to make decisions, promoting entrepreneurship, and fostering innovation. These measures aim to restore confidence among enterprises, supporting their recovery and growth after a challenging period. By doing so, Vietnam hopes to improve its position in key global rankings.

Specifically, the government is targeting advancements in areas such as sustainable development, e-governance, property rights, and logistics efficiency.

Vietnam also seeks to solidify its cybersecurity framework and improve its ranking in tourism development indicators. These goals reflect the nation’s desire to create an attractive, competitive environment that meets international benchmarks.

Encouraging more businesses to enter the market

A key aspect of the government’s 2025 strategy is to significantly increase the number of businesses entering or re-entering the market. The target is for a minimum 10% growth in these numbers compared to 2024.

At the same time, the government aims to ensure that fewer businesses exit the market, keeping the rate of withdrawals below 10%.

To achieve this, authorities plan to create a fairer competitive environment while reducing regulatory barriers that may deter new enterprises. Measures will be implemented to cut unnecessary business conditions and streamline administrative processes.

The resolution calls for a thorough review and overhaul of legal and procedural obstacles that hinder investment and business projects. Ministries and local governments are tasked with identifying and resolving issues such as conflicting, unclear, or outdated regulations.

Regulations that are deemed unnecessary or impractical will be abolished. This includes conditions that lack clarity, feasibility, or scientific grounding. Similarly, overlapping or redundant certification requirements will be eliminated to reduce wasteful expenses for businesses and society.

For areas where immediate changes are outside the authority of local bodies, issues will be escalated to higher levels of government, including the Prime Minister’s task force, to ensure prompt resolutions.

Leveraging technology and modernizing procedures

The government is also prioritizing the modernization of administrative processes. Efforts are underway to digitize key procedures, enabling more efficient handling of tasks such as licensing, compliance, and data sharing between government agencies. The national single-window portal, which facilitates streamlined import-export procedures, will be expanded and further integrated.

By enhancing these systems, Vietnam aims to not only improve efficiency but also provide businesses with a more supportive environment that encourages growth and innovation.

Another focus of the reforms is to attract high-tech investments and promote the transfer of advanced technologies. This includes creating favorable policies and removing existing barriers that may discourage foreign investors from bringing cutting-edge technologies to Vietnam.

The government plans to adopt innovative approaches to managing and inspecting goods, ensuring compliance while maintaining efficiency. These efforts are expected to encourage enterprises to adopt new technologies, contributing to the overall modernization of Vietnam’s economy.

Protecting businesses from unnecessary disruptions

The government has also issued strict instructions to avoid redundant inspections and audits that could disrupt normal business operations. Ministries and local authorities are required to coordinate their activities to prevent overlaps and ensure businesses can operate smoothly without undue interference.

By implementing these reforms, Vietnam is striving to create a dynamic and fair business environment. The nation’s focus on innovation, efficiency, and modernization underscores its commitment to becoming a leader in economic and industrial development in the region.

As Vietnam approaches 2025, these measures are expected to not only boost the number of market participants but also improve the country’s global competitiveness, laying the groundwork for sustainable growth in the years to come.  – Source: VNN