Business Registration Reform in Viet Nam, Phase III

Project completed

Accurate and legally valid enterprise information is an important backbone to facilitate private sector transactions, increasing confidence in business transactions and transparency in an economy. This project seeks to enhance the business registration system in Vietnam.

Country/region Period Budget
Vietnam
01.01.2014 - 30.06.2020
CHF  5’509’582
Background

Publicly accessible business information will strengthen transparency and the doing business environment. It will enhance contract enforcement, reduce risks in private sector transactions and is relevant for the public sector in areas such as tax and land registration. Business registration is a backbone for a market economy and for its formalization. The National Business Registration System is the only nationwide registry covering 806'000 enterprises employing about 6 million persons. The project will also seek to expand coverage to state owned enterprises and special commercial entities operated by Ministries.

Objectives

By 2018, the national administration and the 65 sub-national administrative offices responsible for the business registration procedures will be enabled to provide accurate, legally binding information on commercial entities to the business community, government agencies and the general public.

Medium-term outcomes

The registry's database is complemented with information on all commercial entities including new all foreign invested enterprisies, state owned enterprises, scientific & technology enterprises, credit institutions & enterprises registered through the Management Boards of industrial and export processing zones.

A clear roadmap for inclusion of other types of businesses is approved by competent authorities.

The percentage of dossiers in the registry containing inaccurate and/or incomplete information is decreased.

The percentage of clients who are satisfied or highly satisfied with the services received is increased.

The revenues of the administration's business registration services increase the cost coverage of operations at the national level and at sub-national levels.

FIEs submit applications for Investment AND Business Registration Certificates at a single-point registration. Inconsistency between Investment and Business Registration Agencies is reduced, the process for FIEs streamlined, making the overall registration process more efficient and consequently attract more foreign investors to Vietnam.

Results

Expected results:  

Based on a legal review & recommendations on revising the enterprise law & relevant regulations, the government will be assisted in integrating all commercial entities into the national registry.

Upgrading the business registry to reflect legal changes and simplified processes (automated generation of enterprise code).

Strenghten the capacities of the public administration to assure good maintance of the registration system as well as a high quality of services provided to the public.

Support the data conversion from existing sources to ensure comprehensiveness of data.

Stragetic support to the responsible registration agencies for assuring financial stability, quality of services provided and enhancing access of other government agencies and organizations to the registry.

Support national campaigns to increase awareness of the online national registry to enhance use and eventually formalization.

Establishment of a single-point registration mechanism for FIEs.


Results from previous phases:  

As by 2013 the following key results have been achieved:

• Business registrations are now done through an online registration portal: Time for completing a registration was reduced from 15 days to less than 3 days for over 88% of cases. Also, the average cost for a new enterprise registration decreased by USD 50, amounting to a total estimated private sector saving of USD 4 mio./year.

• Public access to legally valid enterprise information is enabled, which reduces transaction costs & improves investor confidence: With online search options & info. services of the registry, the risk of duplication of identical business names is reduced & information about potential business partners can be checked easily & inexpensively. Certainty of who is lawfully representing a business is key for the legal validity of contracts.

• The online registry is complemented with e-payment, e-signatures & financial statements of domestic sharholding companies.


Directorate/federal office responsible SECO
Credit area Development cooperation
Budget Current phase Swiss budget CHF    5’509’582 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    5’177’500
Project phases

Phase 3 01.01.2014 - 30.06.2020   (Completed)