Over 153,000 firms join the market
Over 153,000 firms join the market
The number of newly-established firms and firms resuming operations set a record in 2017 with more than 153,000 companies with total registered capital of VND3.16 quadrillion (US$139 billion).
The latest statistics of the Ministry of Planning and Investment showed that the figure broke the record of 110,000 firms last year.
Accordingly, the total number of new firms was nearly 127,000 with total registered capital of VND1.3 quadrillion, posting increases of 15.2 per cent and 45.4 per cent, respectively, compared with last year.
Average registered capital was VND10.2 billion per company in 2017, increasing 26.2 per cent from the previous year.
The number of enterprises resuming their operations was some 26,000 with total additional capital of VND1.86 quadrillion.
In December alone, the number of newly-established businesses was 10,814 with total registered capital of VND164 trillion, representing an increase of one per cent in number and 49 per cent in registered capital from the previous month.
Therefore, average registered capital was VND15.2 billion per company in December, up 50.8 per cent from the previous month.
The country also had 1,245 firms resume operations this month.
"The number of new firms and registered capital has been on an upward trend in the 2011-17 period. The number of new companies in 2017 rose by 1.6 times from 2011, while registered capital increased 2.6 times,” the department said.
It also said the new firms were mostly in wholesale, retail and automobile repair with over 45,400 (36 per cent), processing and manufacturing with 16,100 (13 per cent) and construction with 16,000 (13 per cent).
In term of registered capital, the property sector made up the highest portion with VND388.3 trillion, accounting for 30 per cent of the total. The real estate sector in 2017 attracted a large amount of capital in comparison with other sectors.
It was followed by the wholesale, retail, construction and manufacturing sectors.
The number of workers at new firms in 2017 was more than 1.16 million, reducing 8.4 per cent from last year. The manufacturing sector attracted the most workers at 430,622, accounting for 37 per cent of the total.
The department added that over 21,600 businesses registered to halt their operations in 2017, increasing nine per cent from last year.
Notably, the number of sectors that had more businesses registering to halt their operations included wholesale, retail, construction and processing.
In addition, the number of enterprises waiting for dissolution in 2017 reduced 4.6 per cent from last year.
