Growth in new firms but also in firm closures

13:29 | 31/08/2019 Economy- Society

(VEN) - A report by the Business Registration Management Agency under the Ministry of Planning and Investment shows that the number of new companies established and those resuming operations in the first seven months of 2019 totaled 103,599, an increase of 9.6 percent compared with the same period last year, averaging 14,800 companies each month. 

growth in new firms but also in firm closures

Specifically, 12,352 new companies were established in July with total registered capital of VND139.2 trillion, up 9.7 percent in number of companies and 14 percent in registered capital compared with July 2018. Registered capital averaged VND11.3 billion per company, up 3.9 percent.

In the first seven months, 79,310 new companies were established nationwide with total registered capital of more than VND999.39 trillion, up 4.6 percent in number of companies and 29.6 percent in registered capital compared with the same period last year. Registered capital averaged VND12.6 billion per company, up 23.9 percent.

Notably, 24,289 companies resumed operations in the first seven months, up 29.9 percent compared with the same period of 2018.

Also in the first seven months, 57,206 companies withdrew from the market, up 16.2 percent compared with the same period last year, averaging 8,172 companies per month. Of these, 23,100 companies registered to suspend operations, up 15.6 percent; more than 24,800 companies were waiting for dissolution, up 15.3 percent; more than 9,200 companies completed dissolution procedures, up 20 percent.

According to the Ministry of Planning and Investment, companies which registered to temporarily suspend operations, mostly for less than one year, did this to restructure their investment portfolios or to seek new business opportunities. Most of these companies will resume operations.

Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management:

In the current context of the economy, ministries and sectors need to accelerate reforms to improve the business

environment and facilitate investment. Delays could undermine business opportunities.

Thu Phuong