94,500 operational firms recorded in January-July

The GSO said in a July 29 report on the national socioeconomic performance in the January-July period that this month alone has seen the establishment of over 11,200 companies with registered capital of some VND122.1 trillion (US$5.2 billion), down 7.8% in number and 7.6% in value against the previous month.

As many as 2,970 companies have also opened their doors again after suspension, while nearly 8,000 others have suspended their operations. Notably, more than 1,000 companies have gone out of business this month.

Between January and July, the country has had roughly 75,800 new companies with registered capital of VND771.1 trillion (US$33.1 billion), rising by 3.9% and 11.6%, respectively, from a year earlier. Each has registered an average VND10.2 billion (US$439,000) in capital, a year-on-year rise of 7.4%.

Operational companies have so far registered an additional VND1,460 trillion (US$62.8 billion) to fund their expansion plans, bringing the total freshly pledged capital to over VND2,231 trillion (US$96 billion), in the period.

In addition, the number of companies returning to business has risen by 6.5% year-on-year to some 18,700, bringing the total number of newly registered and reorganized enterprises in seven months to some 94,500.

New companies have registered to employ 623,500 people, down 13.5% compared with the same period last year.

Around 25,700 companies have entered the wholesale, retail, and automobile and motorbike repair sectors, accounting for 33.9% of the country’s total.

The construction sector has come second, with some 10,100 new companies (13.3%), followed by processing and manufacturing, with 9,400 (12.4%), and science and technology, as well as consulting, design and advertising services, with 5,700 (7.6%).

The seven-month period has also witnessed a 38.4% rise in enterprises suspending their operations, reaching over 59,910. Besides this, more than 7,700 companies have already completed the procedures for dissolution.

The majority of these ineffective firms have come from the sectors of wholesale, retail and automobile and motorbike repairs; processing and manufacturing; and construction, according to the GSO.