Việt Nam sees enterprise growth

View of cashew processing factory. The nation saw strong growth in number of manufacturing and processing enterprises in the first eight months. — Photo baocongthuong.com.vn

HÀ NỘI — Việt Nam has gained good results in the development of enterprises for the first eight months of this year, according to the Ministry of Planning and Investment (MPI).

During the first eight months, there were 73,404 newly registered enterprises, an increase of 19.7 per cent compared with the same period last year, said the MPI’s General Statistics Office (GSO).

The total registered capital of those enterprises for production and business reached VNĐ567.9 trillion (US$25.5 billion), 50.9 per cent higher than the same period last year, reported the office. The average registered capital for each enterprise rose year-on-year 26 per cent to VNĐ7.7 billion.

In the first eight months, the real estate industry had the highest growth in number of newly-registered enterprises and newly-registered capital at 101.3 per cent and 268.4 per cent, respectively, in comparison with the same period last year.

Other industries that achieved year-on-year high growth in the number of newly-registered enterprises and newly-registered capital included mining with 8.8 per cent and 247 per cent, manufacturing and processing with 24 per cent and 106.7 per cent, and information and telecommunication with 15.2 per cent and 183 per cent, respectively.

Meanwhile, the office said the number of newly-registered enterprises in August reduced 3.5 per cent to 9,282 units year-on-year though the total of newly-registered capital surged by 2.6 per cent to VNĐ80 trillion.

The reason behind the temporary reduction in new enterprises was that August is also the seventh month of the lunar year, the ghost month, so the people dislike starting a business in that month, the office said. But the higher registered capital and average capital for each enterprise showed that investors had confidence in the positive prospects of the domestic economy.

The office also reported in August, the nation had 2,005 enterprises restarting their business, a month-on-month increase of 11.1 per cent. The figure brought the total number of recovering enterprises in the first eight months of this year to 18,711 units, 65.1 per cent higher than the same period last year.

However, due to high competition, the number of enterprises stopping their operation in the first eight months reached 7,479 units, a year-on-year increase of 18.9 per cent, of which 93.2 per cent were enterprises with capital under VNĐ10 billion.

In eight months, 40,419 enterprises suspended their operation, a year-on-year surge of 3.5 per cent. — VNS