Registered capital of new firms in January hits four-year high

Thursday, Jan 30, 2020 09:00

Total registered capital of new enterprises set up in January surged sharply by 76.8 per cent to VND267 trillion (US$11.46 billion). — VNA/VNS Photo

Viet Nam had 8,276 new enterprises established in the first month of 2020, down 17.9 per cent year-on-year, but the total registered capital of the enterprises surged sharply by 76.8 per cent to VND267 trillion (US$11.46 billion), the highest growth rate in four years, the General Statistics Office (GSO) reported.

With the surge, average registered capital of new enterprises was at VND32.3 billion, up 115.3 per cent year-on-year.

The decline in the number of new enterprises in January was attributed to the country’s largest festival – Lunar New Year – while the sharp surge in capital was thanks to the establishment of a new enterprise in the finance-banking-insurance industry that had a registered capital of VND144 trillion, accounting for 53.9 per cent of the total registered capital.

The new enterprises created 84,500 jobs, down 21.7 per cent year-on-year.

January also saw 8,470 enterprises resuming operations, a rise of 0.1 per cent against the same period last year, bringing the total number of newly-registered and revived enterprises in January to 16,746.

A number of industries witnessed significant declines in the number of newly-established enterprises in the month. Motorbike and automobile trading and repair was down 38.6 per cent year-on-year; mining, down 32.6 per cent, healthcare and social welfare down 23.9 per cent, construction down 15.1 per cent and manufacturing and processing down 7 per cent.

However, five industries saw the number of newly established enterprises increasing, including production and distribution of electricity, gas and water up 8.6 per cent; information and communications up 8 per cent; science, technology, consultancy, design, advertising and others up 4.6 per cent; education and training up 2 per cent; and catering services and accommodation up 0.2 per cent.

The GSO also reported that the number of enterprises temporarily ceasing operations in January was 11,702, up 8.3 per cent year-on-year.

The number of enterprises which finished procedures for bankruptcy in the period was 1,621, down 10 per cent from the same period last year. Of the enterprises, 1,451 had registered capital of less than VND10 billion. — VNS

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