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Number of newly-established firm records a surge of 20% in first 6 months
Thu Minh 09:29, 2016/07/15
Over 54,500 companies were set up in the first six months of this year with a combined registered capital of 427.8 trillion VND (19.2 billion USD), increasing by 20 percent year-on-year in the number of companies and 51.5% in capital, according to the General Statistics Office.
The General Statistics Office said the number of businesses resuming operations in the first half of 2016 witnessed a record high in the recent years, as it rose 75.2% against a year ago to 14,902. 
More than 54,500 companies were set up in the reviewed time with a combined registered capital of 427.8 trillion VND (19.2 billion USD), representing a year-on-year rise of 20% in the number of companies and 51.5% in capital. 
The statistics of the office showed that over 16,120 firms added their capital by 774.7 trillion VND (34.7 billion USD).
Some officials of the Ministry of Planning and Investment (MoPI) said the surges in the business numbers and registered capital prove the effectiveness of the enterprise and investment laws and the Government’s measures, which have strenghthened the start-up spirit and businesses’ confidence. 
However, 5,507 firms shut down in the first half of 2016, up 17% from the same period of last year. Of which about 5,130 companies had registered capital of less than 10 billion VND (448,500 USD) apiece, accounting for 93.1% of the total closures. 
More than 31,100 firms suspended operations due to difficulties, rising by 15% against the same period last year, according to the General Statistics Office.
The MoPI is fine-tuning the draft law on support for small- and medium-sized enterprises, which is expected to create a legal framework for supporting these companies more strongly. 
Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said the law will be a momentum for achieving the Government’s target of having at least 1 million businesses in Vietnam by 2020.

 
Photo for illustration.
Photo for illustration.
Most local enterprises are optimistic about production and business in the second half of this year, according to the General Statistics Office.
About 55.4% of local companies expected the production volume to increase by this year-end while 9% said production volume would be reduced. Around 35% predicted stability in production.
With regard to production orders, 48.5% of them expected orders to increase while 9.5% of them estimated they would reduce. About 42% of them said export orders would increase.
The office said 48% of local businesses expected the processing and manufacturing industry to improve, while 44% thought production orders in the third quarter would increase against the second quarter.
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