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(1) It replaced the licensing system. Previously,
businesses needed to apply for a license before
34 different agencies. The procedures took an average
of 99 days and cost 5 million dong ($320, average
annual per-capita income in 2003: $440).
• Now: Registration is no longer subject
to preconditions and takes a maximum of two weeks,
and in some places only 24 hours. Cost is 200,000
dong ($13).
(2) It enlarged the scope of business. In the past,
a company had to apply for every single activity
it wanted to engage in. Any change in activities
or addition of a single activity rendered the license
invalid and forced the business to go through the
process again.
• Now: The license allows the business
to operate in all sectors except for those restricted
by law.
Changes or additions within the scope of the law
do not require a new license.
(3) It removed capital requirements. Would-be entrepreneurs
used to be forced to borrow capital to even apply
for a business license.
• Except for some sectors (for example
insurance, banking), no capital requirements exist
any longer.
Number of newly registered businesses under the
New Enterprise Law:
2000: 14,000 2001: 18,000 2002: 21,000
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