New firms, registered capital hit records on business optimism
New firms, registered capital hit records on business optimism
The number of new firms set up in the first half of this year and the capital registered to be poured into the economy hit record highs, reflecting the business optimism for post-pandemic recovery. 
The latest updates from the General Statistics Office (GSO) showed that nearly 67,100 new firms were established in the first half of this year with a total registered capital of VND942.6 trillion (US$40.6 billion) employing 484,300 people, representing a rise of 8.1 per cent, 34.3 per cent and a drop of 4.5 per cent, respectively.
On average, each new firm had a registered capital of VND14.1 billion, 24.2 per cent higher than the same period last year.
Bui Anh Tuan, Director of the Ministry of Planning and Investment’s Agency for Business Registration, said the number of new firms in the first half of this year hit a record high ever, breaking the previous record of 66,958 firms recorded in the first half of 2019.
“This is a special record in the outbreak of the COVID19-pandemic since the end of April with the most complicated development so far,” Tuan said.
"The record new firms demonstrated the business optimism on the economic recovery and business opportunities."
Together with nearly VND1.2 trillion worth of additional capital from 23,700 existing enterprises, more than VND2.09 trillion was registered to be poured into the economy, excluding two new firms with unusually huge registered capital of VND25 trillion and VND500 trillion on May 20 in HCM City. This also set a new record for the registered capital, Tuan said.
“This is a positive sign, reflecting the recovery of production and business,” he added.
Still, the pandemic was heavily affecting the production of business of many enterprises, especially those operating in virus-hit sectors such as trade and services and those of small and medium sized enterprises, he said.
He added that most enterprises which temporarily halted operation or were dissolved were those which were operating for less than five years, of small scale and operating in the virus-hit sectors.
About 26,100 enterprises resumed operations in the first half of this year, 3.9 per cent higher than the same period in 2020.
On average, 15,500 enterprises were set up and resumed operation each month.
In June alone, 11,300 enterprises were created with a total registered capital of VND164.3 trillion, a drop of 2.5 per cent in the number of new firms but a increase of 9.1 per cent in the registered capital, together with more than 4,800 enterprises returning to the market.
June saw 3,877 firms temporarily halt operations, up by 20.2 per cent, 5,238 waiting for dissolution procedures, up 36.3 per cent and 1.919 completing dissolved, up by 40.3 per cent over the same period last year.
GSO’s survey on enterprises operating in the processing and manufacturing industry in the second quarter of this year showed that 30.5 per cent saw better business than the first quarter, 37.7 per cent saw stable while 38.6 per cent saw a more difficult business climate.
More than 39 per cent expected better business in the third quarter while 22 per cent forecast difficult times ahead.
