16:32 | 09/10/2016 Economy- Society
(VEN) - Newly-established businesses soared both in terms of number and scale in the first eight months of this year. The number of businesses which resumed operations after a period of halt sharply increased against the same time last year.
According to the Ministry of Planning and Investment’s Business Registration Management Agency, 73,404 new businesses were registered in the first eight months of this year, with total capital of almost VND567.93 trillion, a 19.7 percent increase in the number of businesses and a 50.9 percent increase in terms of registered capital against a year ago. Registered capital averaged VND7.7 billion, a 26 percent increase, while the number of employees of newly-established businesses reached 857,200.
The number of businesses which resumed operations in the first eight months of the year reached 18,711, a 65.1 percent increase from a year ago, compared with 3.7 percent in the same period from 2014-2015. Resumed businesses were in all sectors. In the lead were businesses in arts and entertainment (192 businesses, up by 137 percent from a year ago), agriculture, forestry and fishery 403 and up by 93.8 percent, education and training 305 and up by 91.8 percent. The Business Registration Management Agency said that the figures were positive showing the business community’s growing trust in the business environment.
In addition to newly-established businesses, the number of companies resuming operations soared. According to the Ministry of Planning and Investment, 14,924 businesses applied for halt in the first eight months of the year, a 32.7 percent increase from a year ago. Meanwhile, 25,495 others either halted without registration or waited for dissolution, down by 8.3 percent from the same period in 2015. Most of them were small-sized with capital of less than VND10 billion.
The number of businesses which completed dissolution procedures reached 7,479 in the first eight months of the year, a 18.9 percent increase from a year ago, compared with 1.2 percent from 2014-2015. Among these businesses, 93.2 percent had registered capital of less than VND10 billion.
Luu Bich Ho, former Director of the Ministry of Planning and Investment’s Strategy Institute, said that in consideration of sudden increases in both numbers of newly-established and resumed businesses and those which have halted operations and have completed dissolution dossiers, the business environment is not really favorable, partly due to major challenges in export markets and complex changes at home and abroad.
To improve the situation, Nguyen Dinh Cung, Director of the Central Institute of Economic Management, recommended that ministries and localities continue implementing Prime Ministerial Resolution 19/2016 on improving the business environment and apply incentive policies in support of businesses, particularly small to medium-sized enterprises, in order to build a transparent and fair environment for all economic sectors.
Total registered capital reached more than VND1,592 trillion in the first eight months of this year, including almost VND567.93 trillion worth of newly-registered capital and almost VND1,025 trillion in supplementary capital.