Econ
Newly established firms enjoy a boom
Vietnam saw a strong business wave with 105,125 new firms established in the first ten months of the year, nearly reaching the record high of 110,000 hit in the whole of 2016.
Reports from the Enterprise Development Agency under the Ministry of Planning and Investment showed that the number of newly established enterprises in the first ten months rose 14.6 percent year-on-year.
If adding the 22,765 enterprises that have returned to operations, the total number of additional firms after ten months was 127.890, much higher than that of the whole of 2016.
The new firms have total registered capital of over VND1 quadrillion (US$44 billion), up 43.8 percent from the same time last year.
According to the agency, the scale of registered capital of new firms this year also rose against last year. The number of new firms with registered capital of VND10-20 billion rose by 34.4 percent to 4,913; those with capital of VND20-50 billion increased by 28.2 percent to 2,593; and the rising number of those with capital of over VND100 billion was 27.7 percent to 1,199.
In October alone, nearly 11,160 new enterprises were established with total registered capital of VND119.24 trillion, up 29.6 percent and 48 percent in volume and value against last month.
Registered capital of a new firm in October also averages at VND10.7 billion, up 14.2 percent compared with last month. The number of employers in the new firms during the month also surged 40.5 against last month to nearly 89,970.
The retail, and automobile and motorbike maintenance and repair industries saw pool of newly established companies with 37,817 firms, followed by the processing and manufacturing sector with 13,449 firms.
Meanwhile, the real estate sector has the strongest growth in the number of new firms with 62.5 percent.
With the rise of newly established enterprises in the first ten months, the ministry estimated that the number of new firms established this year could reach over 120,000 or even higher.
The latest data demonstrates that there is a strong business wave with huge potential within the Vietnamese business community.
The Vietnamese economy has never witnessed such a strong business wave, from the determination of the central and local regulators to the strong entrepreneurial spirit of every investor and individual, even spreading to younger people who are still attending school, with a strong start-up movement gradually developing towards high quality.
The boom in the number of newly established companies has surpassed many predictions, even the most optimistic. It proves that the potential and business spirits of the Vietnamese are always good seeds and would bloom and bear fruit if there are favorable conditions in which to do so.
The quality of newly established enterprises will be advanced in the context of the Industrial Revolution 4.0 which is expanding into every corner of socio-business life. The improved infrastructure has actively supported newborn businesses, both in terms of quantity and quality, as well as their scale, efficiency and competitiveness.
The new wave of business has emerged in the context of the private business sector which has never seen such great attention from the Party and State before. The Resolution issued at the 12th Party Central Committee's 5th meeting not only affirms the motivated role of this dynamic and potential economic sector, but also identifies a range of practical and proper policies with which to promote the private sector’s development, which are clearly stated in the newly issued Small and Medium Enterprise Support Law.
In concretizing the Party's policy, over the past few years, the Government has issued various resolutions on improving the business environment, reforming administrative procedures, and facilitating the development of enterprises. The facilitated business environment with increasingly healthy, equal and stable conditions created by the government, with the motto of creativity, integrity and serving, is the decisive condition for the appearance and growth of this strong business wave.
Typically, the Government has actively urged the relevant ministries and sectors to review and abolish thousands of unreasonable business conditions and sub-licences that impede the healthy development of the economy and lead to harassment and corruption.
The true quality of the remaining business conditions will play an important role in driving this new wave to new heights. Furthermore, the rising confidence in business is the surest guarantee for high and sustainable economic development.
If adding the 22,765 enterprises that have returned to operations, the total number of additional firms after ten months was 127.890, much higher than that of the whole of 2016.
The new firms have total registered capital of over VND1 quadrillion (US$44 billion), up 43.8 percent from the same time last year.
The retail sector saw pool of newly established companies with 37,817 firms
in the first ten months of 2017. |
In October alone, nearly 11,160 new enterprises were established with total registered capital of VND119.24 trillion, up 29.6 percent and 48 percent in volume and value against last month.
Registered capital of a new firm in October also averages at VND10.7 billion, up 14.2 percent compared with last month. The number of employers in the new firms during the month also surged 40.5 against last month to nearly 89,970.
The retail, and automobile and motorbike maintenance and repair industries saw pool of newly established companies with 37,817 firms, followed by the processing and manufacturing sector with 13,449 firms.
Meanwhile, the real estate sector has the strongest growth in the number of new firms with 62.5 percent.
With the rise of newly established enterprises in the first ten months, the ministry estimated that the number of new firms established this year could reach over 120,000 or even higher.
The latest data demonstrates that there is a strong business wave with huge potential within the Vietnamese business community.
The Vietnamese economy has never witnessed such a strong business wave, from the determination of the central and local regulators to the strong entrepreneurial spirit of every investor and individual, even spreading to younger people who are still attending school, with a strong start-up movement gradually developing towards high quality.
The boom in the number of newly established companies has surpassed many predictions, even the most optimistic. It proves that the potential and business spirits of the Vietnamese are always good seeds and would bloom and bear fruit if there are favorable conditions in which to do so.
The quality of newly established enterprises will be advanced in the context of the Industrial Revolution 4.0 which is expanding into every corner of socio-business life. The improved infrastructure has actively supported newborn businesses, both in terms of quantity and quality, as well as their scale, efficiency and competitiveness.
The new wave of business has emerged in the context of the private business sector which has never seen such great attention from the Party and State before. The Resolution issued at the 12th Party Central Committee's 5th meeting not only affirms the motivated role of this dynamic and potential economic sector, but also identifies a range of practical and proper policies with which to promote the private sector’s development, which are clearly stated in the newly issued Small and Medium Enterprise Support Law.
In concretizing the Party's policy, over the past few years, the Government has issued various resolutions on improving the business environment, reforming administrative procedures, and facilitating the development of enterprises. The facilitated business environment with increasingly healthy, equal and stable conditions created by the government, with the motto of creativity, integrity and serving, is the decisive condition for the appearance and growth of this strong business wave.
Typically, the Government has actively urged the relevant ministries and sectors to review and abolish thousands of unreasonable business conditions and sub-licences that impede the healthy development of the economy and lead to harassment and corruption.
The true quality of the remaining business conditions will play an important role in driving this new wave to new heights. Furthermore, the rising confidence in business is the surest guarantee for high and sustainable economic development.
