Vietnam's business formations rise 9.1% to 17,400 in Jan-Feb

Mar 2nd at 14:39

02-03-2020 14:39:23+07:00

Total capital added to the economy by companies between January and February was VND641 trillion (US$27.75 billion).

In the first two months of 2020, Vietnam has seen a total of 17,400 enterprises set up with registered capital of a combined VND220 trillion (US$9.52 billion), up 9.1% in number and down 11.1% in registered capital year-on-year, according to the General Statistics Office.

Data: GSO. Chart: Hai Yen.

Average registered capital per newly-established enterprise reached VND12.6 billion (US$545,541) during this period, down 18.5% year-on-year.

If including VND421 trillion (US$18.22 billion) of capital additionally pumped by operational enterprises, total registered capital added to the economy between January and February was VND641 trillion (US$27.75 billion), down 26.2% year-on-year.

Most of the newly-established enterprises are in the fields of wholesale, retail, automobile repair with 5,738 enterprises, up 9% year-on-year. Those in the construction sector totaled 2,227, up 11.3%; the manufacturing and processing with 2,179, up 5%; science, technology, consultancy, design, advertising and others with 1,609, up 26.3%, among others.

Besides, 11,900 enterprises resumed operation, a rise of 17.1% against the similar period last year, bringing the total number of newly-registered and revived enterprises in the two-month period to nearly 29,400.
Total number of laborers of newly-established enterprises in the January – February period was 157,500, a decrease of 3.9% against the same period last year, according to the government-run agency.

The number of enterprises temporarily ceasing operation in the period was 16,200, up 19.5% year-on-year. Moreover, the number of enterprises which finished the procedures for bankruptcy in the period was 2,800, down 11.1% from the same period last year, of which 2,500 enterprises had capital base of less than VND10 billion (US$429,380), down 13.4%.

In February, the number of newly-established enterprises reached 9,163, with registered capital of VND96.8 trillion (US$4.19 billion), representing an increase of 10.7% in the number of enterprises and a decline of 21.4% in registered capital month-on-month.

Hanoi Times