Newly-established firms up but capital down in two months

During the period, the enterprises resuming operations were up 17.1 per cent year-on-year to 11,900.

However, the new enterprises registered a total capital of VND220 trillion (US$956 million) and 157,500 workers, down 11.1 per cent and 3.9 per cent year-on-year, respectively.

Meanwhile, about 5,700 other businesses registered to add VND421 trillion to their capital.

In total, an additional VND641 trillion was poured into the economy, down 26.2 per cent from the same period last year.

Nearly 16,200 businesses suspended operations in the first two months of this year, up 19.5 per cent annually, reported the GSO.

Up to 9,400 businesses waited for dissolution procedures, down 31.4 per cent and 2,800 others completed the procedures, down 11.1 per cent in the two months.

In February, Viet Nam had 9,163 newly established enterprises with registered capital of VND96.8 trillion, an increase of 10.7 per cent month on month. Average registered capital of the newly established enterprises reached VND10.6 trillion, down 29 per cent month on month and down 35.2 per cent year on year.

There were 3,630 enterprises resuming operations in February, down 57.1 per cent month on month.

In terms of the economic sector, in the first two months of this year, there were 265 newly established enterprises in the agriculture, forestry and fishery sector, up 17.3 per cent year on year; 4,700 new enterprises in the industry and construction sector, up 8.4 per cent; and 12,500 new businesses in the service sector, up 9.2 per cent.

There were four groups seeing reductions in the number of newly established enterprises, including the group of health and social assistance firms, down 10.7 per cent; the group of real estate businesses, down 6 per cent; the group of arts and entertainment firms, down 5.8 per cent; and other service firms, down 6.3 per cent.

To improve the competitiveness of enterprises, Nguyen Minh Thao, head of Business Environment and Competitiveness under the Central Institute for Economic Management, said the State needs to accelerate reforms and serve businesses more effectively. Those would promote development of start-up firms and contribute to the domestic economic growth.