The latest statistics of the Ministry of Planning and Investment showed that 110,000 new firms were established this year, increasing by more than 16 per cent over the same period last year, also hitting the 100,000 milestone for the first time.

Total registered capital of new firms rose by a whopping 48 per cent.

Deputy Minister of Planning and Investment Đặng Huy Đông told vtv.vn that these figures proved that businesses felt more confident in the business climate of Vietnam.

Đông said greater efforts were, however, still needed to improve the business and investment climate, which would remain a priority of the Government.

Vietnam embarked on a thorough process of improving business climate and national competitiveness in 2014 with the issuance of Government Resolution 19/NQ-CP. The Government has set a goal of having at least one million firms with efficient operation by 2020.

The Government is also promoting the entrepreneurship spirit and making Vietnam a promising startup nation, part of the effort to develop the private economic sector, which has been defined as the driver for socio-economic growth.

A law on supporting small- and medium-sized enterprises is being drafted.

Currently, there are more than 500,000 firms in Vietnam, of which some 97 per cent are small and medium sized.