January sees number of newly-established firms drop, capital surge
January sees number of newly-established firms drop, capital surge
The first month of 2019 saw a 7% fall in the number of newly-established enterprises to 10,079 firms, but pledged capital surged strongly, according to a report from the Business Registration Management Agency under the Ministry of Planning and Investment.
The report shows that 12 of the total 17 sectors saw a drop in the number of newly-established enterprises last month. Particularly, the numbers of the new establishments in logistics, mining and hospitability sectors plummeted by 99%, 38% and 18% respectively.
However, each new firm reportedly registered an average of VND15 billion in capital in January, a year-on-year increase of 64.8%. Accordingly, the total registered capital of the new firms was recorded at over VND151 trillion in January, soaring by 53.8% year-on-year.
Besides this, some 4,000 operational companies registered an additional VND484 trillion in January, up 12.9% against the first month of 2018, raising the total newly pledged capital to more than VND635 trillion last month, surging a staggering 100.8% year-on-year.
Additionally, the report indicated that some 8,460 firms, mainly operating in electricity, water and gas supplies, manufacturing and distributing activities, the finance-bank-insurance sector, and science, technology, advertising and consulting services, resumed their operation last month, rocketing by 84.5% year-on-year.
However, the country saw some 1,800 firms completing procedures for dissolution in January, showing a 16% year-on-year increase, in addition to 10,804 firms suspending their business, rising by 25.3% year-on-year.
