Firms with resumed operations rise sharply in eight months

Hanoi (VNA) – Businesses have put more confidence in Vietnam’s economic prospect, many economists said, pointing to the surge in the newly registered capital and the number of companies resuming operations between January and August.

The General Statistics Office said 73,404 new enterprises with a registered capital of 567.9 trillion VND (25.46 billion USD) were set up during the eight months, up 19.7 percent and 50.9 percent from a year earlier, respectively. The capital per company averaged 7.7 billion VND (345,270 USD).

As many as 18,711 firms, which suspended their activities due to difficulties, have resumed operations during the period, rising by 65.1 percent year on year.

The increase of new firms was recorded in almost all sectors over the eight months, such as real estate (up 101.3 percent in company number and 268.4 percent in registered capital), mining (8.8 percent and 247 percent), and information and communications (15.2 percent and 183 percent).

Meanwhile, Vietnamese enterprises registered to add 1.024 quadrillion VND (45.9 billon USD) to their existing capital in the first eight months.

However, the number of new enterprises in August (9,282) declined 3.5 percent from July as August coincided with the seventh lunar month, traditionally called the Ghost Month which hampered people’s intention to establish new companies.

While 7,479 companies were dissolved, 40,419 others suspended their operations in eight months, up 18.9 percent and 3.5 percent from the same period last year, the statistics office added.-VNA