Number of New Firms Surges in 2015


More than 77,500 new enterprises were registered in the first 10 months of 2015, a 29.2 per cent year-on-year increase, the Minisstry of planning and investment (MPI) said.
MPI said the total registered capital in the 10-month period was VND486.09 trillion (US$ 21.63 billion), 37.9 per cent higher than the same period in 2014.
In addition to the expansion capital of VND737.81trillion ($32.83 billion), more than VND1,200 trillion ($54.4 billion) has been added to the local economy.
The average registered capital per enterprise also rose by 6.7 per cent to reach VND6.3 billion ($280,373) in the first 10 months of this year. These enterprises also created about 1.15 million new jobs, an increase of 31 per cent over the same period in 2014, MPI said.
The ministry said the establishment of new firms in the first 10 months of 2015 increased in all sectors of the economy, such as by 87 per cent in entertainment, 86.8 per cent in real estate and 36.1 per cent in construction, compared with the same period in 2014.
In October, nearly 9,200 firms with a registered capital of nearly VND65.200 trillion (US$2.89 billion) were set up, marking a 30.6 per cent rise in number and 46.4 per cent increase in capital, when compared with the previous month.
About 157,900 jobs were created in October, 25.4 per cent higher than in September.
The gradual recovery of the country’s economy and easier business establishment procedures were the two reasons that have led to the increase in the establishment of new firms, the ministry said.
More than 7,600 companies have been dissolved or have ceased operations so far this year, 1.2 per cent lower than last year, MPI said.
Most of the dissolved businesses were small in scale, with a charter capital of less than VND10 billion ($445,037) each.
However, the number of firms that resumed operations reached 16,198 firms in the 10-month period, a 24.6 per cent increase over the same period in 2014, MPI said.