Number of new firms soars

According to the General Statistics Office (GSO), the newly established firms registered total capital of VND669.7 trillion (US$28.6 billion), an annual increase of 29.6 per cent. Newly registered capital and funds added to existing projects hit VND1.7 quadrillion ($72.6 billion).

Average registered capital of the new firms reached $12.4 billion, up 25.6 per cent year on year, a much higher growth rate than in previous years, the office said.

The service sector had the largest number of newly established firms, accounting for 71.3 per cent. Following was the industry and construction sector, with 27.3 per cent, and the farming, forestry and fishery sector at 1.4 per cent.

The property sector had largest growth in new firms at 21 per cent. Meanwhile, other sectors saw reduction in new businesses, including retail, car and motorbike repair, accommodation and catering service, and mining.

The finance, banking and insurance sector had the strongest reduction in new firms from January to May.

In the period, improved conditions helped 19,600 firms resume operations, a year on year increase of 48.1 per cent.

Viet Nam is forecast to grow by 6.8-6.9 per cent in 2019 on the back of sound economic performance in 2018, according to the Viet Nam Macro-Economic Outlook 2019 report.

In 2018, the economy expanded by 7.08 per cent, one of the highest growth rates in the region and the world, supported by 12.98 per cent growth in the manufacturing and processing sector and a 3.76 per cent expansion in agriculture since 2012.