HCM City: number of newly-established firms down in January hinh anh 1Illustrative image (Photo: VNA)

HCM City (VNA) – There were 2,536 newly-established businesses in Ho Chi Minh City in January with a total newly registered capital of over 17.9 trillion VND (778 million USD), down 7.07% in volume and 38.03% in value year on year, reported the municipal People’s Committee.

The additional capital surpassed 19.5 trillion VND, down 59.9% annually, bringing the total new and additional capital to over 37.5 trillion VND, marking a decrease of 51.74% compared to the same period last year.

During the month, 291 firms completed dissolution procedures, down 5.83%; 10,255 others temporarily shut down, up 21.05% and 3,235 had their operations back to normal, down 31.82%. The city is home to 518,713 valid enterprises.

Chairman of the municipal People’s Committee Phan Van Mai said economic difficulties lasted from the fourth quarter last year and are predicted to prolong to the end of the first or even the second quarter this year.

The total export turnover of local firms was estimated at 3.6 billion USD, down 13% year-on-year while imports dropped by 21% to 4.3 billion USD. The index of industrial production fell by 15% annually and 21.4% monthly.

However, the total retail sales of goods and services went up 5.7%. The agro-forestry-fisheries production was estimated at 911.2 billion VND, up 3.8%. The foreign direct investment attraction soared by 73.8% annually to around 179 million USD, including 50 foreign-invested projects worth 86.86 million USD, up 127.8% from the same period last year.

Director of the municipal Department of Industry and Trade Bui Ta Hoang Vu expressed his belief that with experience in pandemic response and the dynamic nature of businesses in the city, clear guidance and specific directions from local leaders, the business community will return to positive growth in the near future./.