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More enterprises coming back to life

Released at: 12:10, 03/12/2014

More enterprises coming back to life

MPI report shows healthy increase in the number of enterprises resuming operations and details movements in newly-established enterprises and closures and suspensions this year.

by Do Huong

During the first eleven months of this year 14,208 enterprises resumed operations around the country; an increase of 11.8 per cent against the same period last year.

According to the latest report from the Agency for Business Registration under the Ministry of Planning and Investment, in November alone the number stood at 1,205, 6.5 per cent higher than in October. "The number of companies that resumed operations proves that the economy is recovering and enterprises plan to invest,” said an Agency representative.

In the first eleven months, 67,790 newly-established enterprises entered the economy with total registered capital of VND391.2 trillion ($18.2 million). As estimated, these new enterprises need to create 992,000 jobs, an increase of 1.9 per cent compared with the same period last year. There was a decline in numbers but an increase in the capital of newly-established enterprises compared with the same period last year. While the number is increasing compared to October, the number of closures is decreasing. In November alone, the number of closures fell 1.5 per cent compared to October.

A total of 60,340 enterprises dissolved or suspended operations in the first eleven months, an increase of 9.8 per cent against the same period of 2013. Of these, 8,661 were dissolved while 10,147 temporarily suspended operations. The remaining 41,532 failed to meet their tax obligations or were yet to notify registration agencies of their closure. In the first eleven months total newly-registered capital and increased capital stood at VND935.9 trillion ($43.4 million). Starting last year, a number of industries have undergone a process of restructuring, with new businesses opening and others closing. Industries seeing high growth in both business registrations and suspensions and closures are Manufacturing (up 2.7 per cent and 8.6 per cent, respectively), Education and Training (8.2 per cent and 38.7 per cent), Real Estate (29.3 per cent and 1.2 per cent), Arts, Entertainment and Recreation (66.4 per cent and 24.5 per cent), Agriculture, Forestry and Fishery (30.2 per cent and 6.7 per cent), Manufacture & Distribution of Electricity, Water, and Gas (4.9 per cent and 17.7 per cent), Finance, Banking and Insurance (2.4 per cent and 9 per cent), Information and Communications (9.2 per cent and 20.8 per cent), Transportation and Storage (10.5 per cent and 17.3 per cent), and Human Health and Social Work Activities (5.9 per cent and 23.8 per cent).

Some key industries, meanwhile, are seeing falling numbers of new entries and rising closures, such as Wholesale and Retail Trade, Repair of Automobiles, Motorbikes and other Motor Vehicles (with new registrations down 13.8 per cent and closures up 12.7 per cent), Accommodation and Food Service Activities (down 0.6 per cent and up 9.3 per cent), Mining and Quarrying (down 0.8 per cent and up 19.6 per cent), Professional, Scientific and Technical Activities (down 3.2 per cent and up 19.5 per cent), and Construction (down 6 per cent and up 7.7 per cent). In Employment Services, Travel, Equipment Rentals, Supplies and Other Support Services, the number of business opening and closing was down 7.7 and 1.9 per cent, respectively.

According to the report there was a decline in the number of newly-established enterprises compared to the same period last year in Vietnam's six economic regions, except in the central highlands, which saw an increase of 11.4 per cent. Closures and suspensions were up in all regions in the first eleven months. In the North-Central and Central Coast Area, new entries were down 6.4 per cent and closures up 8.8 per cent, in the Northern Midlands and Mountainous Areas down 3.3 per cent and up 19.6 per cent, in the Southeast Area down 1.9 per cent and up 12.9 per cent, in the Mekong Delta down 19.6 per cent and up 5.3 per cent, and in the Red River Delta down 4.3 per cent and up 7 per cent.

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