HCM City's Planning and Investment Department grants licences to newly-established local enterprises.— Photo sggp.org.vn

HCM CITY (Biz Hub) — The number of enterprises going out of business in January was 10 per cent lower than in the same period last year.

This decrease in closures indicates that HCM City-based enterprises were prospering, according to figures released by the City's Department of Planning and Investment at a meeting held on Friday, January 23.

Meanwhile, licences granted to newly-established local enterprises, and for operational projects seeking capital expansion in HCM City, rose 33.2 per cent compared with January 2014, Thai Van Re, Director of the HCM City Department of Planning and Investment told delegates at a meeting to review January's socio-economic developments in HCM City.

According to a report released by the HCM City People's Committee, in January the city authority licensed 23 new foreign direct investment (FDI) projects with total registered capital of nearly US$330 million, up 53.3 per cent in the number of projects and a 15-fold increase in investments.

In addition, eight operational projects were licensed for capital expansion of $34 million.

Further, the Chairman of HCM City People's Committee, Le Hoang Quan, said total FDI flowing into HCM City is expected to increase from $3.25 billion in 2014 to $3.5 billion this year.

In the past few years, foreign investment in HCM City has been focused on sectors such as mechanics, electronics–IT, chemicals and food processing.

"The city authority will create favourable conditions for investors in HCM City," said Quan.

Additionally, the Director of HCM City Finance Department, Dao Lan Huong, said revenues from tax payments for the city's budget reached VND26 trillion, over US$1.2 billion, up 29 per cent compared with the same period last year.

The rising budgetary revenues indicate the "good health" of HCM City-based businesses, said Huong, as quoted by Sai Gon Giai Phong (Liberated Sai Gon) newspaper.—VNS