The number of firms established in March and their total capital almostdoubled from the previous month, according to figures from the municipalDepartment of Planning and Investment.
There were 7,487 new companies who invested a total of more than 35 trillion VND (1.66 billion USD).
In the first quarter as a whole, the number of firms that wereincorporated and the number that closed down were comparable, though theformer increased by 16.9 percent year-on-year, almost twice the latterfigure.
But in Cuu Long (Mekong) Delta provinces, the numberof firms that closed down was up 26.1 percent while the number ofstart-ups rose by just 2.5 percent.
Le Xuan Nghia, director ofthe Business Development Institute, said the figures reflect thechurning going on in the economy. Sectors like services, processing, andmanufacturing are attracting plenty of investment while constructionand financial and insurance services have declined, Tien phong newspaperquoted him as saying.
He predicted this process would continue.
Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry,said many local firms have become mature and begun to focus onlong-term effectiveness and are pulling out of unstable sectors.
Le Duy Binh, director of the Hanoi-based Economica Company, alludingto the continuing rise in the number of firms being dissolved, said manysmall firms like his own have little access to government incentives.
Binh recommended the government increase Consumer Price Index(CPI) to improve purchasing power. The Government should also ensuresocial security by reducing value-added tax, and improving socialinsurance.
Phan Duc Hieu of the Central Institute for EconomicManagement (CIEM) said all related agencies should work closelytogether to assist businesses.
"To help enterprises overcome challenges, incentives should be more specific and consistent," he said.-VNA