Ministry of Finance proposes to slash business costs

Vietnam has nearly five million household businesses which contribute about 30 percent of the country’s gross domestic product (GDP). Fee exemptions for enterprise registration are expected to reduce business operating costs. (Photo: luatvietphong.vn)

The Ministry of Finance (MoF) has completed a draft circular on the amount, collection, payment, management and use of fees for information provision about enterprises and enterprise registration.

Vietnam has nearly 5 million household businesses which contribute about 30 percent of the country’s gross domestic product (GDP), according to the Vietnam Chamber of Commerce and Industry (VCCI).

While the Government is building a support policy for small- and medium-sized enterprises, VCCI Chairman Vu Tien Loc said the current legal framework does not guarantee equality for household businesses or encourage them to turn into enterprises.

In the draft, the finance ministry has proposed halving the fee for enterprise registration from 100,000 VND (4.30 USD) to 50,000 VND.

Charges for business registration include new establishment, amendments to enterprise registration, reissuance of enterprise registration certificate, and operation registration certificate for branches, representative offices and business location.

The fee for providing content for enterprise registration has also been proposed to be reduced to 300 VND from 100,000 VND each time.

In addition, the draft proposes exempting fees for amendments to business registration resulting from adjustment to administrative boundaries and business registrations via electronic network.

The reductions are expected to support businesses' operations.