New firms up almost 4% in H1

Monday, Jul 01, 2019 13:49

Representatives of enterprises implement business registration procedures. Newly-established firms rose 3.8 per cent to about 67,000 in H1 2019. — Photo

About 67,000 new enterprises were registered in the first half of this year, the highest number of the first six months in the last five years, according to the Ministry of Planning and Investment.

The high number was due to strong development of start-up firms that continues to promote capital mobilisation and production capacity for the economy.

During the first six months, the newly-established firms registered total capital of VND860.2 trillion (US$36.6 billion). Those figures rose by 3.8 per cent in number of new firms and 32.5 per cent in capital year-on-year.

The ministry said in the first six months, the nation attracted total capital of VND2.2 quadrillion ($93.6 billion) from newly-established firms and registration of capital increase from existing firms.

Besides that, about 21,600 enterprises resumed their operation in the first half of this year, a year-on-year increase of 31.4 per cent.

However, the number of enterprises suspending business during the six months was 21,100, surging 17.4 per cent compared to the same period last year.

About 21,800 businesses ceased operations pending dissolution procedures, of which 11,000 enterprises had business registration certificates revoked under the annual data standardisation programme from 2018. The number of enterprises completing dissolution procedures in the first six months was 7,800, an increase of 18.1 per cent over the same period last year.

Optimistic business performance

Up to 52 per cent of processing and manufacturing enterprises are expected to perform better in the third quarter of 2019, according to the ministry’s survey on business trends in the processing and manufacturing sector in the second and third quarters.

About 36.6 per cent of them said that production and business would be stable while 11.4 per cent predicted that they will face more difficulties in production and business.

Of which, foreign direct investment (FDI) enterprises were the most optimistic on production and business in the third quarter, when 91.3 per cent of FDI enterprises forecast production and business performance would be better and remain stable.

The proportion for State-owned and non-State enterprises was 86.5 per cent and 87.8 per cent, respectively.

The ministry said for business performance in the second quarter, 45.2 per cent of processing and manufacturing enterprises said the situation of production and business was better than the previous quarter.

Meanwhile, 16.5 per cent of businesses had difficulties and 38.3 per cent of them said that the production and business situation was stable. — VNS

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