Newly-registered firms, charter capital hit lowest for September since 2016: GSO

Illustrative photo. (Source: VNA)

Business and production have been severely stricken by prolonged lockdowns and social distancing orders triggered by the worst-ever COVID-19 resurgence in the third quarter of 2021, according to the General Statistics Office (GSO).

Data from the GSO shows that the number of newly-established firms and their registered capital in September hit the lowest for the same month since 2016. There were 3,899 companies founded last month, representing a significant fall of 62.2 percent compared to a year earlier. These companies registered some 62.4 trillion VND (over 2.73 billion USD) in charter capital, a 69.3-percent plunge year on year.

The number of new enterprises were low in Ho Chi Minh City, which only added 594 firms and 14.5 trillion VND worth of register capital last month, down 80.9 percent and 88 percent, respectively, year on year. A similar trend was observed in the southern provinces of Binh Duong and Dong Nai with only 63 and 39 enterprises newly established during the month, down 89.8 percent and 88.1 percent, respectively.

The aggregate number of newly-founded enterprises in the first nine months of the year dropped 13.6 percent to 85,500 and their registered capital exceeded 1.19 quadrillion VND, a year-on-year decrease of 16.3 percent.

During the nine-month period, the number of companies temporarily suspending operation rose by 16.7 percent while that of those completely dissolving was up 5.9 percent.

According to GSO Director General Nguyen Thi Huong, domestic enterprises have become more proactive in responding to the COVID-19 after going through four coronavirus waves since early 2020, but their financial capacity and resilience are weakening given the fact that 98 percent of Vietnamese companies are micro, small and medium-sized enterprises (MSMEs).

The figures may suggest that Vietnamese firms are not optimistic in short term and the pandemic has been putting tremendous impacts on them, Huong said./.