Data from the Ministry of Planning and Investment shows nearly 7,000 firms completed the formalities for their dissolution or suspended their operations in the month, up 33 per cent over April. — Photo baoquangninh.com.vn

HA NOI (Biz Hub) — Domestic businesses have continuously faced difficulties, resulting in the decrease in the number of newly established firms and a rise in the number of dissolved ones.

Data from the Ministry of Planning and Investment (MPI) showed that nearly 5,500 firms were set up in May, a decrease of more than 25 per cent over the previous month, and 6,713 firms completed the formalities for their dissolution or suspended their operations in the month, up 33 per cent over April.

However, in the first five months, the country saw the establishment of 31,200 new firms, with a total registered capital of more than VND173.6 trillion or US$8.07 billion, a 0.7 per cent increase in the number of businesses and a 11 per cent rise in registered capital year over year.

During the period, 27,800 businesses dissolved their operations, up 20 per cent year over year.

The ministry also reported that there are 1,100 businesses which are facing difficulties or are reviving their operations after suspending them.

To resolve the difficulties and obstacles facing businesses, the government last week asked the relevant agencies to work closely, practically and effectively, and to accelerate administrative reforms to create the most favourable conditions for business.

To help firms mobilise investment, the Ministry of Finance has been asked to improve the regulations on prioritising, exempting and reducing business income tax, while facilitating the streamlining of administrative procedures related to tax and customs.

The Government also asked the State Bank of Viet Nam to continue urging credit institutions to be proactive in meeting businesses and supplying capital to them, while encouraging commercial banks to apply methods of business confidence evaluation to extend opportunities on mortgage loans and adjust the high interest rates which were applied earlier.

It urged the MPI to complete the legal procedures to put in operation a recently established fund for developing small and medium enterprises as soon as possible.

The MPI should also work with the Viet Nam Chamber of Commerce and Industry to continue training human resources for the enterprises, prioritise the fields which use hi-tech, and encourage the enterprises to establish vocational training institutions or coordinate with the institutions in training and job creation, it said.

In addition, the Government also requested the Ministry of Industry and Trade to improve market management and competitive capability and to take drastic measures to address the problem of fake and low-quality goods, while boosting the support extended to local businesses to expand production and trade. — VNS