New established firms surge 36% in May

Monday, Jun 01, 2020 06:57

The JASAN VN Company in the northern province of Hung Yen. — VNS/VNS Photo Pham Kien

More than 10,720 new firms were set up in May with total registered capital of VND112.7 trillion (US$4.83 billion), up 36 per cent in number and 20 per cent in capital from the previous month, according to the General Office of Statistics (GSO).

The GSO attributed this month's positive figures to the end of the social distancing orders and effective support programmes from the Government.

However, the number of newly-established enterprises in Viet Nam in the first five months of 2020 totaled 48,300 with registered capital of VND557.9 trillion ($23.91 billion), down 10.5 per cent in number and 16.7 per cent in registered capital year-on-year.

Average registered capital per new firm was VND11.5 billion during the period, a yearly decline of 7 per cent.

Taking into account the VND817.4 trillion added to existing firms, the capital flow into the economy from January to May came to more than VND1.37 quadrillion, a decrease of 17 per cent compared to the same period last year, the GSO said.

Among economic sectors, only electricity, gas and water production and distribution, and the sector of agro-forestry-fishery saw increases in the number of fresh enterprises with 928 and 794, respectively, up 95 per cent and 5.6 per cent year-on-year.

The first five months also saw 21,700 firms resuming their operations, up 10.5 per cent year on year and 26,000 firms temporarily ceasing operations, up 36.4 per cent year on year.

Nearly 6,100 firms dissolved in the period, down 5 per cent, with 2,200 of them in whole and retail, automobile and motorbike repair, the GSO noted.

Moreover, the number of enterprises which completed procedures for bankruptcy was down 4.8 per cent to 6,100, of which 5,400 enterprises had a capital base of less than VND10 billion. — VNS

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