A “bright spot” from startup movement

April 28, 2020 9:00 AM GMT+7

VGP – In the first quarter of 2020, Ha Noi reported 6,350 newly established businesses with a total capital of VND103 trillion (US$4.41 billion), an increase of 1% in the number of enterprises and up 98% regarding registered capital compared to the same period last year.

Illustration photo

These positive figures came as a result of the city’s policies to promote the startup movement, becoming a “bright spot” in the context of difficulties due to the impact of the COVID-19 pandemic.

Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) Vu Tien Loc hailed this as an impressive and “come-from-behind” performance as Ha Noi’s newly formed companies outnumbered those who withdrew from the market, which was in contrast to the whole country’s situation.

There are many reasons for the bright picture concerning newly established businesses in the capital city. According to Nguyen Manh Quyen, Director of the Ha Noi Department of Planning and Investment, the combined resources of Ha Noi people are huge, and an open business environment, continuous reforms and authorities’ effective handling of affairs will continue inspiring people to make investments and participate in developing the economy.

The fact also shows that Ha Noi currently ranks among the top 10 localities nationwide in terms of provincial competitiveness index (PCI), with some important criteria, including the online business registration rate of 100%. This has brought many advantages, creating an impulse for the start-up movement.

Policies, mechanisms and practical support from Ha Noi’s functional agencies have driven businesses to enter the market. The project on supporting startup in the capital city until 2020 (approved in the municipal People’s Committee’s Decision No. 4665/QD-UBND dated September 5, 2018) is a specific example. Accordingly, Ha Noi has offered many policies to support the newly established small and medium-sized enterprises (SMEs), such as supporting fees for announcement of business registration contents and fees for fast delivery of results at home or to enterprises’ headquarters, and providing free consultations on the order and procedures for termination of operations. The municipal Department of Planning and Investment has also worked with providers of accounting softwares and services to implement the programs of presenting accounting softwares and offering accounting assistances free of charge to new firms.

In addition, the project on supporting creative startup in Ha Noi in the 2019-2025 period (approved in the municipal People’s Committee’s Decision No. 4889/QD-UBND dated September 9, 2019) continues to implement many strong policies to support startup and creative startup, including supporting business registration fees, the funding for the implementation of human resource training programs, and admission fees to incubators and co-working areas for SMEs to implement creative startup.

Programs on training human resources and providing information for enterprises will also be strengthened with the ensured quality, mainly through the online format to suit the context of the COVID-19 pandemic.

By Vien Nhu

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