14:38 | 06/11/2016 Economy
(VEN) - The first nine months of 2015 witnessed a sharp increase in both volume and size of new businesses over the same period last year. Having seen the optimism of manufacturing and processing enterprises in business outlook for the fourth quarter, the General Statistics Office of Vietnam (GSO) predicted a better investment environment for the last months of the year.
New businesses up 49.5 percent in capital
Data from the Ministry of Planning and Investment’s Business Registration Management Department showed that in the first nine months of 2016, 81,451 enterprises registered establishment with a total registered capital of VND629.1 trillion, up 19.2 percent in quantity and 49.5 percent in registered capital from the same period in 2015. The average registered capital of a business came to VND7.7 billion, an increase of 25.4 percent over the same period last year.
New businesses have a total registered workforce of 928,700 people, equal to 92.9 percent of that in the same period of 2015. In the first nine months, 20,510 businesses went back to operation after suspension, up 59.6 percent from the same period last year.
According to GSO General Director Nguyen Bich Lam, the new legal framework and the government’s measures to create incentives for businesses have helped companies find ways to develop.
About 45,097 enterprises suspended operation in the first nine months of this year, down 5.3 percent from the same time in 2015, including 16,294 enterprises registering suspension for a specific period of time (up 31 percent) and 28,803 businesses registering suspension for disbandment (down 18.1 percent). As many as 8,365 businesses completed dissolution formalities in the first nine months, increasing 20.2 percent over the same period last year, including 7,812 enterprises capitalized at less than VND10 billion.
Lam saw it as an inevitable phenomenon of the economy. He added that the number of businesses disbanding and suspending operation in Vietnam was lower than in many other countries and territories. Indeed, in the UK, 67 percent of every 100 new enterprises went bankrupt or suspended operation, while the rate was 90 percent in New Zealand.
Better business climate in the fourth quarter
Off all manufacturing and processing enterprises surveyed by the GSO in the third quarter, 80.3 percent assessed that the business environment in the third quarter was quite stable and better than the previous quarter, while only 19.7 percent saw a difficult situation.
Enterprise operation in the fourth quarter was forecast to be better than the third quarter, especially for foreign direct investment (FDI) businesses. Specifically, 85.6 percent of surveyed enterprises believe that the situation in the fourth quarter will be better than in the third quarter, while only 14.4 percent of the surveyed expect the contrary.
The GSO has predicted that better business environment could make business confident of strong growth in the last months. However, the business environment still needs to be further improved. Lam said that ministries, sectors and localities should seriously follow the principle ‘Constructive government - businesses serving as development motivation’. In addition, the government should have more policies to encourage investment, scientific research and application.