HCMC to transfer authority for management to districts, agencies to encourage business development

Chairman of the HCMC People’s Committee Nguyen Thanh Phong on December 2 said that the city would speed up transferation of authority for management to districts and agencies to improve investment environment and encourage innovations to obtain the city’s plan to have 50,000 new businesses next year.

Chairman of the HCMC People’s Committee Nguyen Thanh Phong presides over a meeting to review the city's socioeconomic conditions for the last 11 months on December 2 (Photo: SGGP)

Not only the municipal authorities but also districts must synchronously take action to create advantageous conditions for businesses to develop to achieve the city’s targets, he said.

HCMC has the policy of transparently administrative reform but many districts have laid down conditions when enterprises apply for licenses or assistances. This has resulted in asynchronous condition slowing business development, Mr. Phong noted.

Therefore, the city will complete a project to give districts and agencies more administrative power to increase their leaders’ initiative and responsibility.

According to director of the Department of Planning and Investment Su Ngoc Anh, at present the city has 300,000 enterprises so it has to establish an extra of 50,000 businesses a year in the next four years to get the target of 500,000  by 2020.

Assisting businesses’ development must be conducted synchronously by relevant agencies and districts who manage most activities related to tax, environment, insurance, food safety and construction licensing.

Deputy director of the State Bank of Vietnam in HCMC Nguyen Hoang Minh says that the goal of having 50,000 businesses a year is feasible because the number of individual business households is very large.

The banking industry is under the direction of supporting businesses and startups to have enough capital to develop production and trading and targeting the credit growth rate of 18-20 percent.

So far the industry has loosened monetary policy compared to previous years to provide capital for the economy and newly established companies.

As of November this year, the city’s credit growth rate reached 16.01 percent and expected to increase to 18 percent this yearend compared to last year. Capital mobilization will hike appropriately.

HCMC plans to have 36,000 businesses established domestically this year with the total registered capital of VND292,600 billion (U$12.91 billion). Of these, the number of single member limited liability companies will be highest accounting for 57 percent.

By Van Anh – Translated by Hai Mien

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