Raising businesses’ confidence in the government

Monday, 2017-02-13 04:18:08
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NDO - It is a good sign when in the first month of 2017 Vietnam attracted approximately US$1.4 billion of foreign direct investment (FDI), amid fears that the US withdrawal from the Trans-Pacific Partnership would significantly affect the FDI inflow into Vietnam.

Such concern has been alleviated when FDI pledges to new projects reached over US$1.2 billion, up 23% over the same month a year earlier and additional investment in existing projects hit US$179.1 million. Disbursement in January also rose 6.3% to US$850 million. The outlook of FDI attraction in 2017 is forecast to be bright when pledges last year were estimated at over US$20 billion and disbursement reached an all-time high of US$15.8 billion.

Another good sign is that Vietnam saw 8,990 newly established enterprises in January with total capital of VND90.3 trillion (US$3.97 billion), up 52.3% from a year ago. If additional capital invested by existing enterprises is counted, total capital injected into the economy in January will be VND204.9 trillion (US$9 billion). Along with the solid foundation formed in 2016, when more than 110,000 enterprises were established with total registered capital of VND891.1 trillion (US$39.2 billion), 2017 is expected to be a promising year for the number of new businesses.

Figures of FDI pledges and new businesses in 2016 and January of 2017 are impressive but they are currently just numbers on paper. When these enterprises and FDI projects come into operation, such capital will become a significant resource for the economy. One of the major drivers of the economy in 2017 will be enterprises, including both domestic and foreign ones. The increases in the number of new businesses and FDI projects reflect the high confidence of the business community in the government’s commitment to improving the business environment by building a facilitative, incorruptible and action-oriented government.

Such confidence needs to be continually bolstered by the government’s concrete actions from the central to the grass-roots levels to help new businesses and FDI projects quickly commence operations, thereby helping to stimulate economic growth.