In the first seven months, the country had 52,000 newly-established firms with total registered capital of VND321.3 trillion ($15 billion), representing 23 per cent and 22 per cent in terms of numbers of businesses and capital, respectively. More than 32,373 firms suspended operations during this period. — Photo baoquangnam

HA NOI (Biz Hub) — The scale of Vietnamese businesses have decreased with the average registered capital of a newly-established firm till July this year being VND6.2 billion (US$284,400), reducing 0.2 per cent over the same period last year.

Statistics from the Ministry of Industry and Trade's Department of Business Registration showed that last month, the country had 6,598 newly-established companies with total registered capital of VND38.8 trillion ($1.77 billion), showing a decrease of 29 per cent and 38 per cent in term of the numbers and capital, respectively, over the previous month.

The number of enterprises to be completely dissolved last month was 748, or 9.2 per cent, in comparison with June. Another 3,172 firms suspended operations, a 36 per cent month-on-month decrease. Nearly 1,500 businesses returned to normal operations in July, an increase of 33 per cent against the previous month.

In the first seven months, the country had 52,000 newly-established firms with total registered capital of VND321.3 trillion ($15 billion), representing 23 per cent and 22 per cent in terms of numbers of businesses and capital, respectively. More than 32,373 firms suspended operations during this period.

The new businesses in the entertainment sector were the highest with a surge of 126 per cent, followed by real estate at 68 per cent, and warehousing at 51 per cent, in addition to construction at 29 per cent, and consultancy and advertisement at 25 per cent.

The department said that the number of new companies has shown a rising trend over the corresponding period last year. This is a positive sign for the economy.

Pham Ngoc Long, from Viet Nam Association of Small-and-Medium sized Enterprises said that SMEs have been one of the four main sectors that have added momentum to the economy, accounting for 97 per cent of the total operating businesses and total registered capital of $121 billion.

However, even though the SMEs are large in number they are not strong enough, Long said.

Sharing the ideas, Tran Hoang Ngan, a member of the National Assembly's Economic Committee, said the government should lend support in terms of resources, trade promotions, investment and forecast to help businesses quickly meet market demands both inside and outside the country.

Solutions should be given to SMEs to improve their competitive ability especially in the context of integration, Ngan said.

He suggested that the government soon issue a financial support package for companies to access mid and long term loans with preferential interest rates from five to 10 years. The loans could help them equip themselves with new and modern technologies to improve competitiveness. — VNS