Nam Dinh closures increase

Tuesday, Apr 08, 2014 10:07

Garment products are manufactured at Nam Dinh Garment Jsc. The number of enterprises that stopped operations in the first quarter of this year has outstripped new start-ups in the northern province. — VNA/VNS Photo Danh Lam

NAM DINH  (Biz Hub) — The number of enterprises that stopped operations in the first quarter of this year has outstripped the number of new start-ups in northern Nam Dinh Province, according to the provincial Planning and Investment Department.

The department granted business licenses to 140 newly-established enterprises in the first quarter, with a combined registered capital of VND440 billion (US$20.95 million). This brought the total number of enterprises in the province to 5,090 units with a total registered capital of VND38.66 trillion ($1.84 billion).

However, more than 180 enterprises were reported to have stopped operations, dissolved or gone bankrupt in the same period. Around 20 enterprises and branches had their business licences revoked.

Production also stagnated due to depressed consumption, discouraging enterprises from taking out loans to expand production, the department said.

According to the branch of the State Bank of Viet Nam, by March 31 total outstanding loans in the province had reached VND21.9 trillion ($1.04 billion), 1.1 per cent lower than the beginning of the year.

Meanwhile, the department said industrial production in the first quarter had seen a year-on-year increase of 15.8 per cent to VND8.79 trillion ($418.6 million). Large enterprises accounting for the biggest slice of production also reported stable business results, including the Nam Dinh Textile and Garment Joint Stock Company, Son Nam Textile Joint Stock Company, Song Hong Garment Joint Stock Company and the Nam Ha Garment Joint Stock Company.

Nguyen Van Tuan, Chairman of the People's Committee of Nam Dinh, said the province would streamline administrative procedures, remove barriers to production and create favourable conditions for loans. He also said the province would give lending priority to the agriculture and export sectors, the support industry, small-to-medium enterprises and those using advanced technologies.

The province would also design policies to attract more investors to industrial zones and generate support for enterprises to export goods, he said. — VNS

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