Record rise seen in number of new, resuming firms in 8 months

Illustrative image (Source: VNA)

Record rise was seen in the number of newly-established firms and those returning to the market in the first eight months of this year thanks to a surge in August’s figures, according to the Business Registration Agency under the Ministry of Planning and Investment.

The agency reported that in the month, 11,918 new enterprises were set up with combined registered capital topping 130.19 trillion VND (5.56 billion USD), a year-on-year rise of 106.9% and 91.6%, respectively.

It explained that as August 2021 saw complicated developments of COVID-19 with social distancing measures imposed in many localities, production and business activities were interrupted.

A year later, the number of businesses returning to the market increased 67.1% over the same period last year to 6,458, the highest for a month to date.

The results pushed the number of newly-established firms and enterprises returning to the market in the first eight months of this year to 149,451, up 31.1% year on year. Of the total, the number of new firms was 101,325, a rise of 24.2% year on year.

Processing business registration at the Business Registration Office of the Hanoi Department of Planning and Investment. (Photo: VNA)

Total capital added to the economy in the first eight months of this year also rose 36.1% year on year to 3.63 quadrillion VND, including 1.13 quadrillion VND poured into new firms and 2.5 quadrillion into operating businesses.

According to the agency, 15 out of the 17 sectors saw an increase in the number of new firms, led by accommodation and catering service at 51.7%.

Meanwhile, in the January-August period, 104,317 businesses left the market, including 59,609 firms halting their operations in a short term.

Despite the positive signs in the business number, the average capital of an enterprise fell 26.1% in August compared to that in January, 20.8% over the same period in 2021 and 34.2% over the same time in 2020. Experts held that this showed the caution of businesses and their difficulties in accessing capital./.