Workers at a footwear factory (Photo: VNA)

Hanoi (VNA) – The number of businesses resuming operations in the first half of 2016 saw a record high in many years, as it jumped 75.2 percent from a year earlier to 14,902, according to the General Statistics Office.

More than 54,500 companies were set up during the period with a combined registered capital of 427.8 trillion VND (19.2 billion USD), representing a year-on-year rise of 20 percent in the number of companies and 51.5 percent in capital.

Meanwhile, over 16,120 firms increased their capital by 774.7 trillion VND (34.7 billion USD, data shows.

Some officials of the Ministry of Planning and Investment (MoPI) said the surges in the business numbers and registered capital prove the effectiveness of the enterprise and investment laws and the Government’s measures, which have fostered the start-up spirit and businesses’ confidence.

However, 5,507 firms shut down during the six-month period through June, up 17 percent from a year before. About 5,130 of them had registered capital of less than 10 billion VND (448,500 USD) apiece, accounting for 93.1 percent of the total closures.

More than 31,100 enterprises suspended operations due to difficulties, rising by 15 percent against the same period last year, the General Statistics Office reported.

The MoPI is fine-tuning the draft law on support for small- and medium-sized enterprises, which is expected to create a legal framework for supporting these companies more strongly.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, said the law will be a momentum for achieving the Government’s target of having at least 1 million businesses in Vietnam by 2020.-VNA