Newly-established businesses hit six-year high in March - VnExpress International

Newly-established businesses hit six-year high in March

By VnExpress   March 28, 2017 | 12:00 am GMT+7

Vietnam's business environment appears to be improving and attracting more investment.

Over 12,000 new enterprises were established in Vietnam in March, the highest figure recorded in the past six years, latest data from the Ministry of Planning and Investment show.

During the first quarter of this year, Vietnam has welcomed over 26,000 new businesses with total registered capital of $12 million, representing an on-year increase of 11.4 percent and 46 percent, respectively.

More relaxed laws have paved the way for new businesses, said an official from the Enterprise Development Agency.

The average registered capital of newly established firms this quarter stood at $450,000, up 31 percent compared to the same period last year.

Official figures also suggest signs of an economic recovery, with nearly 10,000 suspended businesses returning to operations over the first quarter, twice more than the corresponding figure three years ago.

Around 110,000 businesses were launched last year, and over 90 percent paid tax, meaning they have officially come into operation.

“It shows that the business environment has been untied, making it easier to do business in Vietnam,” an official from the Ministry of Planning and Investment said.

New openings in the real estate sector increased almost 55 percent from last year, while energy (water and electricity) distribution and education increased 32.5 and 28 percent, respectively.

On a side note, statistics also showed that nearly 3,300 businesses shut down in the first quarter, up 12 percent on-year. Most of them were small and medium sized businesses.

Vietnam is aiming to have over one million small businesses operating by 2020, which means an average of 100,000 new businesses opening every year until then.