Business start-ups and business registrations in Vietnam will increase substantially in early months of 2016, led by positive impacts of new-generation free trade agreements (FTAs) like the TPP and EFTA, the formation of the ASEAN Economic Community and market opening as committed to the WTO. According to the Ministry of Planning and Investment, many companies will revive and register to do business in the first quarter.
The ministry said Vietnam saw 8,320 new business establishments with a combined registered capital of VND59,283 billion in the year to date, up 21.2 per cent year by business registrations and 87.01 per cent in value from the same period of 2015. The average registered capital of a project was VND7.1 billion in January, up 54.3 per cent year on year. Newly established companies employed 124,030 workers in January, representing an increase of 19.8 per cent year on year.
The ministry said single-member limited liability companies account for the most with 4,468 units, followed two-member limited liability companies with 2,027 units. Compared with a year earlier, a decline was seen in private start-ups while other types of companies saw growths.
Classified by capital value, joint stock companies had the highest average value of VND15.7 billion per company, followed by two-member limited liability companies with VND6.9 billion, one-member limited liability companies with VND5 billion, private companies with VND2.3 billion, and partnership companies with VND1.5 billion. All values were higher than those a year ago.
By locality, all areas had more business establishments from the same period of 2015. North Central and Central Coast had 1,266 new companies, up 38.1 per cent; the Southeast had 3,376 new companies, up 22.9 per cent; the northern upland and mountainous region had 360 new companies, up 22.4 per cent; the Red River Delta had 2,364 units, up 15.9 per cent; the Central Highlands had 253 units, up 13.4 per cent; and the Mekong Delta had 701 companies, up 8.5 per cent. Southeast and Red River Delta accounted for 69 per cent of the country’s new business registrations.
The Ministry of Planning and Investment said the Vietnamese business community was very quick and sensitive to new opportunities as many important FTAs will take effect soon. Investors are quite quick to grasp new development trends with investment registrations in health and social support, real estate business, information and communication, electricity production and distribution, education and training, and others. Only entertainment and recreation industry saw a decline of 18.9 per cent from a year earlier.
Notably, up to 4,872 suspended companies resumed operations, up 69.6 per cent year on year. This figure demonstrated the strong vitality of the Vietnamese business community. This also proved that government-backed policies to support the business community to deal with difficulties and challenges are effective.
Driven by TPP and AEC, Vietnam has the right to hope for the presence of 2 million corporate entities in the near future. Nevertheless, it is now important to inspire the entrepreneurship and build up the confidence in starting up a business.
Anh Phuong
Vietnamese
