Vietnam new business creation expands at record rate in Jan-Apr
The growing number of newly established enterprises shows the local economy is firmly on the recovery track, being an attractive destination for businesses.
The number of newly established enterprises in the first four months of 2021 rose by a record rate of 17% year-on-year to nearly 44,200, according to the Business Registry Agency.
Data: GSO. Chart: Hai Yen |
Such figure remained in stark contrast to a contraction of over 13% in the same period of last year, which the agency noted as an “encouraging sign” for the economy.
Wholesale, retail, and automobile repair made up the highest number of new enterprises with around 14,700, followed by construction (5,740) and manufacturing and processing (5,540).
Total registered capital added to the economy was estimated at around VND1,420 trillion (US$61.88 billion), representing an increase of 26% year-on-year, of which, the capital from new enterprises accounted for nearly VND628 trillion (US$27.36 billion), the highest in a four-month period.
“The growing number of newly established enterprises shows the economy is firmly on the recovery track and also the confidence of the business community towards the economic outlook,” the Business Registry Agency noted in a report.
A garment factory in Dong Anh district, Hanoi. Photo: Chien Cong |
Meanwhile, the number of enterprises withdrawing from the market continued its upward trend, especially micro and small ones, which indicates the lingering impacts of the pandemic on the local economy.
During the four-month period, around 51,500 enterprises exited the market, with 28,350 temporarily suspending operation and other 16,400 on the process of dissolution.
The majority of those leaving the market operate on fields of logistics, healthcare, education, real estate and agriculture.
The report also revealed up to 91% of such enterprises have an average registered capital of below VND10 billion (US$436,000) and less than five years of operation.
The agency suggested these are the most vulnerable subjects under the pandemic, for which most were forced to shut down in short-term to wait for government’s supporting policies or new business opportunities before deciding on the next step.
Other News
- Vietnam among Asia-Pacific's fastest growing economies: FedEx
- Vietnam’s stock market remains attractive investment channel: Expert
- Cuba appreciates Vietnam’s support in food and fisheries production
- Vietnam, China to step up cooperation strategy for mutual development
- PM orders urgent measures to address volatile gold prices
- Vietnam earns US$1.4 billion from rice exports in Q1
- Russia’s Zarubezhneft Group explores opportunity for offshore wind projects in Vietnam
- Vietnam poised to reap rewards of rebound in global demand: AMRO
- India, Vietnam seek strong development objectives: Ambassador
- Vietnam’s economy set for speedy recovery in latter half of 2024
Trending
-
Hanoi, UNESCO pledge further cooperation
-
Vietnam news in brief - April 25
-
Vietnamese contemporary ballet celebrates Europe Day
-
Capital Law revision helps Hanoi promote role as nation’s socio-economic hub
-
IT training urged to focus on semiconductors
-
Voluntary social security should cover larger part of informal sector: Experts
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video