Damco
Danang Hi-Tech Park
savills

Economic Sector

Last updated: Friday, February 23, 2018

 

Number of Newly Registered Enterprises Hits Record High

Posted: Friday, January 19, 2018


According to Business Registration Management Agency, Ministry of Planning and Investment, the number of newly established enterprises in 2017 increased by 1.6 times, registered capital by 2.5 times, and the proportion of the average registered capital by 1.5 times compared to those of 2011.

The year 2017 witnessed a record number of newly established enterprises and registered capital. According to the Business Registration Agency, there was an increase of newly registered enterprises at all levels of registered capital in 2017 over the same period of the previous year. In detail, the rate of the increased enterprises at the level of registered capital of VND10-20 billion was the highest, which was 34.4 per cent with 6,171 enterprises, followed by that of the level of over VND100 billion with 1,516 enterprises, increased by 29.2 per cent, VND20-50 billion with 3,224 enterprises, 27.8 per cent, VND50-100 billion with 1,334 enterprises, 15 per cent and VND0-10 billion with 114,614 enterprises, 13.9 per cent. The above numbers have shown that most of the newly established enterprises have been those with the level of registered capital of less than VND10 billion, accounting for 90.3 per cent of the total newly registered ones.
In a comparison, the manufacturing, processing and mining sectors decreased in registered labourers; agriculture, forestry and fishery in registered capital and number of registered labourers; transportation in number of enterprises, registered capital and labourers. The remaining sectors, in contrast, increased in all three indicators.

Mr Nguyen Bich Lam, General Director of the General Statistics Office, Ministry of Planning and Investment, said that the average registered capital of a newly established business in 2017 reached VND10.2 billion, up 26.2 per cent over 2016. According to the calculations by the General Statistics Office, if including VND1,869.3 trillion from 35,200 enterprises with increased capital, the total additional capital to the economy in 2017 reached VND3,165.2 trillion.

According to Mr Nguyen Bich Lam, another positive sign was that besides the newly established enterprises, there were 26,448 enterprises back to business in 2017, down 0.9 per cent from the previous year, bringing the total number of newly established and back-to-business enterprises in the year reached 153,300. The total number of registered employees of newly established enterprises in 2017 was 1,161,300, a decrease of 8.4 per cent compared to that of 2016.

Mr Lam also showed that the number of new enterprises in 2017 in all regions increased compared to that of 2016. In detail, the Southeast had 53,700 newly established enterprises with the total registered capital of VND680.6 trillion, up 14 per cent in the number of enterprises and 84.2 per cent in registered capital; the Red River Delta had 38,100 new enterprises with the total registered capital of VND306.3 trillion, up 13.8 per cent in the number of enterprises and 2.8 per cent in registered capital. The North Central and Central Coast had 16,700 new enterprises, the total registered capital was VND160.3 trillion, increased by 18.4 per cent in new enterprises and 74.6 per cent in registered capital compared to those of 2016; the Mekong River Delta had 9,000 new enterprises the total registered capital of which was VND70.6 trillion, an increase of 14 per cent in the number and 27.1 per cent in registered capital. Northern Midlands and Mountains had 5,300 new enterprises with the total registered capital of VND54 trillion, up 26.4 per cent in the number of enterprises and 29.8 per cent in registered capital; the Central Highlands had 3,200 new enterprises with a total registered capital of VND24.1 trillion, up 23 per cent in the number of enterprises and 36.9 per cent in registered capital compared to those of 2016.

In his analysis, Dr Nguyen Dinh Cung, Director of the Central Institute for Economic Management (MPI), said that the above figures showed that the number of new enterprises in 2017 had surged, surpassing the record of 110,000 enterprises in 2016. This was credited to the huge efforts of the Government, ministries and localities in improving the investment environment, bringing back the fundamental changes that facilitated the business circle in Vietnam in accessing the market or coming back to their businesses. However, besides the record number of newly established enterprises, the number of enterprises that stopped operating and dissolving in 2017 was 60,553. That number should be carefully considered by the Government for its management to make more efforts in improving business environment, removing difficulties for businesses to work again, Dr Cung emphasised.

Anh Phuong








Other news





Atoexpo
ETE
VCB
premier-village-danang
Buhler
Thanh Binh Phu My
FLC
flamingodailai
Tan Quang Minh
Vingroup
Golf Long Thanh
Nam Kim
ippgroup
Cty Sai Gon- Tay Bac