Econ
Vietnam's business formations in Jan-Oct up 4.3% to nearly 110,000
The Vietnamese government targeted to have 135,000 newly established enterprises in 2018, which is part of the objective of having one million enterprises by 2020.
In the first ten months of 2018, Vietnam has seen a total of 109,611 enterprises registered for new establishment with registered capital of a combined VND1,116 trillion (US$47.88 billion), according to the General Statistics Office (GSO).
This resulted in an increase of 4.3% in the number of enterprise and 9.2% rise in the registered capital compared with the same period in 2017.
Average registered capital per newly established enterprise reached VND10.2 billion (US$437,666), up 4.7% year-on-year. If including VND2,045.1 trillion (US$87.77 billion) of additionally registered capital of the enterprises which raised the capital, the total registered capital added to the economy in the ten months of 2018 was VND3,161.1 trillion (US$135.68 billion).
Most of newly established enterprises are in the fields of wholesale, retail sale, automobile repairing with 38,100 enterprises (accounting for 34.8%), up 0.8% year-on-year; construction 14,100 enterprises (12.9%), up 6%; manufacturing and processing 13,500 (12.3%), up 0.6%; science, technology, consulting, design, advertising and others 8,300 (7.6%), up 6.6%, among others.
Besides, there were 27,935 enterprises resuming operation, a rise of 22.7% over the similar period last year, bringing the total number of newly registered and revived enterprises in the ten-month period to over 137,500.
Total number of registered laborers of newly established enterprises in ten months of 2018 was 924,800, a decrease of 5.3% against the same period last year, according to the office.
The number of enterprises temporarily ceasing operation in the period was 78,404, an increase of 48.5% against the comparable period last year, including 24,467 enterprises registered for time-limited temporary cessation of business, rising by 24.7%, and 53,937 enterprises temporarily suspending operation without registering or waiting for dissolution, increasing by 62.6%.
The number of enterprises which finished the procedure for dissolution in ten months of this year was 13,307, an increase of 35.9% from the same period last year, of which there were 12,206 enterprises with capital size of less than VND10 billion (US$429,380), accounting for 91.7% and growing by 35.9%.
The Vietnamese government targeted to have 135,000 newly established enterprises in 2018, which is part of the objective of having one million enterprises by 2020. Pham Dinh Thuy, director of the Industrial Statistics Department under the GSO stated the government's target is challenging but still feasible.
Excluding the number of enterprises suspending operation at around 12,000 per year, Vietnam would need an average of 120,000 newly established enterprises in the 2018 - 2020 period to achieve the target, said Thuy in a GSO meeting on September 19.
This would required to the total number of newly-established enterprises to reach 130,000 per year, Thuy stated.
However, only 110,000 enterprises were established in 2016 and 126,900 a year later. If such growth rate does not change, Vietnam is unlikely to meet the target of having one million enterprises by 2020, he added.
Illustrative photo.
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Average registered capital per newly established enterprise reached VND10.2 billion (US$437,666), up 4.7% year-on-year. If including VND2,045.1 trillion (US$87.77 billion) of additionally registered capital of the enterprises which raised the capital, the total registered capital added to the economy in the ten months of 2018 was VND3,161.1 trillion (US$135.68 billion).
Most of newly established enterprises are in the fields of wholesale, retail sale, automobile repairing with 38,100 enterprises (accounting for 34.8%), up 0.8% year-on-year; construction 14,100 enterprises (12.9%), up 6%; manufacturing and processing 13,500 (12.3%), up 0.6%; science, technology, consulting, design, advertising and others 8,300 (7.6%), up 6.6%, among others.
Besides, there were 27,935 enterprises resuming operation, a rise of 22.7% over the similar period last year, bringing the total number of newly registered and revived enterprises in the ten-month period to over 137,500.
Total number of registered laborers of newly established enterprises in ten months of 2018 was 924,800, a decrease of 5.3% against the same period last year, according to the office.
The number of enterprises temporarily ceasing operation in the period was 78,404, an increase of 48.5% against the comparable period last year, including 24,467 enterprises registered for time-limited temporary cessation of business, rising by 24.7%, and 53,937 enterprises temporarily suspending operation without registering or waiting for dissolution, increasing by 62.6%.
The number of enterprises which finished the procedure for dissolution in ten months of this year was 13,307, an increase of 35.9% from the same period last year, of which there were 12,206 enterprises with capital size of less than VND10 billion (US$429,380), accounting for 91.7% and growing by 35.9%.
The Vietnamese government targeted to have 135,000 newly established enterprises in 2018, which is part of the objective of having one million enterprises by 2020. Pham Dinh Thuy, director of the Industrial Statistics Department under the GSO stated the government's target is challenging but still feasible.
Excluding the number of enterprises suspending operation at around 12,000 per year, Vietnam would need an average of 120,000 newly established enterprises in the 2018 - 2020 period to achieve the target, said Thuy in a GSO meeting on September 19.
This would required to the total number of newly-established enterprises to reach 130,000 per year, Thuy stated.
However, only 110,000 enterprises were established in 2016 and 126,900 a year later. If such growth rate does not change, Vietnam is unlikely to meet the target of having one million enterprises by 2020, he added.
