Viet Nam has about 99,000 new firms in nine months

Wednesday, Oct 07, 2020 08:22

In the first nine months of this year, 34,600 companies resumed operation, up 25.5 per cent from the same time in 2019. — Photo

Viet Nam had about 99,000 newly-established enterprises in the first nine months of this year, a year-on-year fall of 3.2 per cent, according to the General Statistics Office (GSO).

Those new firms registered to invest total capital of more than VND1.4 quadrillion (US$60.56 billion), up 10.7 per cent compared to the same time last year.

The average registered capital of each new business was VND14.4 billion, a year-on-year surge of 14.4 per cent.

Meanwhile, 29,500 operating enterprises registered to increase capital by VND2.1 quadrillion in total for their business. As a result, the domestic economy received total capital of more than VND3.6 quadrillion from newly established and existing businesses this year, expanding 19.2 per cent year on year.

Of which, the electricity, water, gas production and distribution industry had a strong growth of 269.4 per cent year on year in the number of newly established enterprises to 4,241 units.

The GSO also said that other industries had reductions in the number of newly established enterprises, such as wholesale and retail, repair of cars and motorcycles, construction, manufacturing and processing industry, real estate, transportation and warehouse, and accommodation and catering services.

In the first three quarters, 34,600 companies resumed operations, up 25.5 per cent from the same time in 2019.

Besides that, there were 38,600 businesses temporarily suspending operations, a surge of 81.8 per cent compared to the previous year. About 27,600 enterprises were waiting for dissolution procedures and nearly 12,100 completed dissolution procedures, down 2.4 per cent and up 0.1 per cent, respectively.

A survey on business trends of enterprises in the processing and manufacturing sector in the third quarter showed that 32.2 per cent of businesses had better business performance than the previous quarter. About 32 per cent of surveyed firms had difficulties in production and business, and 36 per cent had stable operation.

Up to 45.6 per cent of enterprises felt upbeat about their business in the quarter, 19 per cent forecast difficulties, and 35.4 per cent believed they would have stable business and operation.

Pham Dinh Thuy, director of the GSO’s Department of Industrial and Construction Statistics, said that to overcome existing difficulties, local businesses needed to find partners to have efficient development for investment capital.

The Government and the National Assembly should consider exempting or reducing further taxes and fees, prolonging payment periods for enterprises and raising credit growth ceilings for commercial lending. Those solutions were expected to support enterprises in having funds for stable production and business, Thuy said.

The General Statistics Office also proposed that the State should have policies to encourage imports of material for production expansion and limit imports of materials local enterprises can produce. — VNS

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