Fewer new firms open in January

Thursday, Jan 31, 2019 08:30

Viet Nam had 8,320 new enterprises begin operations in the first month of this year. – Photo vov.vn

Viet Nam saw 10,079 newly established enterprises begin operations in the first month of this year with total registered capital of VND151.1 trillion (US$6.5 billion), according to the Ministry of Planning and Investment (MPI)’s Business Registration Management Agency.

These numbers represent a 7 per cent year-on-year reduction in the number of new businesses but a 53.8 per cent increase in capital.

In January, the average registered capital ratio per enterprise reached VND15 billion, up 64.8 per cent, while the number of registered employees at newly established enterprises was 107,914, an increase of 26.5 per cent year on year.

Total registered capital of enterprises during the month was VND635.1 trillion, a year on year increase of 0.8 per cent, including the VND151.1 trillion from the new firms and VND484 trillion (up 121.9 per cent) from existing enterprises adding capital.

During the month, 8,465 firms also resumed operations, up 84.5 per cent against the same period last year.

The number of enterprises which have completed disclosure procedures rose by 16 per cent to 1,802.

However, 10,804 companies temporarily suspended operations, up 25.3 per cent year on year.

In January, there were 4,767 businesses not operating at their registered address. This is a new criterion for 2019.

This month, 12 out of 17 main business lines decreased in the number of newly established businesses. The largest reductions were in the fields of transport and warehousing (down 99 per cent), mining (37.8 per cent), accommodation and catering services (17.9 per cent) and arts and entertainment (17.1 per cent).

The number of enterprises resuming operations increased in all major business sectors. The sectors with the highest growth rate in this area included electricity, water and gas production and distribution (up 274.6 per cent), finance, banking and insurance (128.6 per cent), science, technology, consulting services, design and advertising (124.2 per cent) and education and training (105.6 per cent).

The agency said the number of new businesses worth VND50-100 billion rose by 24 per cent to 155 unites. The number worth more than VND100 billion rose by 50.5 per cent to 164.

Meanwhile, there were 7-8 per cent reductions in the number of new firms across the categories of VND0-10 billion, VND10-20 billion and VND20-50 billion.

The number of enterprises temporarily suspending operations increased across all capital scales but was most notable in the VND50-100 billion category, which saw the rate rise by 73 per cent over the same period last year. – VNS

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