Newly established firms jump by recond in first eight months
Newly established firms jump by recond in first eight months
The number of newly-established enterprises and those resuming operations in the first eight months of this year surpassed 149,450, up 31 per cent year-on-year and marking the highest level for the period.
According to the Ministry of Planning and Investment's Business Registration Management Department, Viet Nam had 11,918 newly-established enterprises with registered capital of over VND130 trillion (US$5,5 billion) in August, up 107 per cent in the number of enterprises and 91.6 per cent in registered capital on year.
The significant increases were attributable to the impact of the COVID-19 pandemic in 2021. Many localities implemented social distancing measures, resulting in interrupted production and business activities, the department said in its latest report.
In total, 101,325 new firms were established with a total registered capital of over VND1.13 quadrillion in the first months of this year, surging 24.4 per cent in the number of enterprises and 0.3 per cent in registered capital on year.
Fifteen out of 17 sectors saw an increase in the number of new firms, led by accommodation and catering service at 51.7 per cent, followed by other service activities (50.8 per cent); employment services and tourism (44 per cent) and entertainment (up 37 per cent).
Meanwhile, the number of businesses returning to operation was 48,126 in the period, a yearly rise of 48.3 per cent on year. This number was also higher than that recorded in whole year of 2021, the department noted.
Several sectors that have been heavily affected by the COVID-19 pandemic in the past two years have recorded strong growth in the number of firms re-entering the market such as other service activities with 1,400 enterprises, up 223 per cent; production and distribution of electricity, water and gas (748 enterprises, up 192 per cent); education and training (1,201 enterprises, up 69 per cent); real estate (1,684 enterprises, up 61 per cent).
Others sectors with strong growth were wholesale, retail and repairing of cars and motorbikes (18,063 businesses, up 58 per cent) and accommodation and catering services (2,765 businesses, up 51 per cent).
The department said total capital added to the economy in the eight-month period also rose 36.1 per cent year-on-year to VND3.63 quadrillion, including VND2.5 quadrillion poured into operating businesses, up 63 per cent year-on-year.
"The fact that more than 35,000 operating businesses have increased capital to expand their production and business in the first eight months is a good sign as these firms see new business opportunities and then enlarge their production to meet the market demand," the department said.
Meanwhile, in the January-August period, 104,317 businesses left the market, 22 per cent higher than that of the same time last year. Of those firms, 59,609 halted their operations in a short term, accounting for 57 per cent of the total.
Despite the positive signs, the average capital of an enterprise fell 26.1 per cent in August compared to that in January, 20.8 per cent over the same period in 2021 and 34.2 per cent over the same time in 2020. Experts said that this showed the caution of businesses and their difficulties in accessing capital.
