Newly-established firms down, registered capital up in 10 months

Hanoi (VNA) - Vietnam recorded nearly 111,200 new enterprises from January-October, a year-on-year decline of 2.9 percent, according to the General Statistics Office (GSO).
The new entrants, however, have combined registered investment of more than 1,594 trillion VND (68.3 billion USD), up 11.1 percent against the same period last year.

Average registered capital per new enterprise was 14.3 billion VND, up 14.4 percent.

Meanwhile, 32,600 operating enterprises registered to increase their capital by more than 2,298 trillion VND in total. The economy therefore received a capital injection of more than 3,892 trillion VND from newly-established and existing enterprises, up 17 percent against the same period of 2019.

During the ten-month period, 37,700 companies resumed operations, up 8.2 percent year-on-year. There were also nearly 41,800 businesses temporarily suspending operations, nearly 30,300 firms waiting for dissolution procedures, and 13,500 companies completing dissolution procedures, up 58.7 percent, down 12.4 percent, and up 0.1 percent, respectively.

Some 8,600 firms withdrew from the market each month on average.

Director of the GSO’s Department of Industrial and Construction Statistics Pham Dinh Thuy said that businesses need to find suitable partners, work to remove bottlenecks, and make good use of their capital.

He suggested the Government and the National Assembly consider exempting taxes and fees, extending payment periods, and raising credit growth ceilings for commercial lending.

Companies should receive timely support to stabilise and develop their production and business, he added.

The GSO proposed that the State have policies to encourage the importation of equipment to expand production while reducing the importation of products where Vietnamese companies possess strengths.

Relevant authorities should work to help local businesses find import sources for materials and spare parts, and encourage consumers to buy Vietnamese products during these tough times, he added./.