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Newly established firms grow at fastest pace since 2017

2021-05-04 18:37

 

A garment and textile processing line at Hưng Việt Garment JSC in Hưng Yên Province. The total capital poured into the economy topped VNĐ1.42 quadrillion in the first four months. — VNA/VNS Photo Trần Việt

HÀ NỘI — The number of new enterprises established in the first four months of 2021 rose 17.5 per cent from a year earlier, the fastest growth since 2017, and it increased in all economic sectors, according to the General Statistics Office (GSO).

Between January and April, nearly 44,200 new firms were set up with VNĐ627.7 trillion (US$27.2 billion) worth of capital and 340,300 employees registered, up 17.5 per cent, 41 per cent, and 7.8 per cent, respectively, from the same period last year.

The registered capital averaged VNĐ14.2 billion per business, rising 20 per cent year on year.

The total capital poured into the economy topped VNĐ1.42 quadrillion in the first four months, including VNĐ792.9 trillion of additional capital from 14,900 existing businesses.

Nearly 19,300 enterprises also resumed operations, growing by 8 per cent from a year earlier, the GSO reported.

In April alone, the number of newly established firms stood at approximately 14,900, registering VNĐ179.9 trillion worth of capital and 94,600 employees. These figures respectively went up 33.1 per cent, 59.1 per cent, and 30 per cent from the previous month.

The registered capital averaged VNĐ12.1 billion per business, rising 19.6 per cent month on month and 1.7 per cent year on year.

As many as 5,745 companies resumed operations in April, up 50.8 per cent year on year.

The GSO held that these are positive signs for enterprise development in the time ahead.

To create further momentum, Director of the GSO’s Industrial and Construction Statistics Department Phạm Đình Thúy said it is necessary to stimulate investment among export manufacturers so as to ready goods supply once global markets are reopened and to capitalise on chances generated by free trade agreements, especially the one between Việt Nam and the EU.

He also pointed out the need to swiftly develop supporting industries to ease the burden on the import of input materials.

Businesses expect the Government will invest more in the transport system to boost the connectivity between key production areas and international ports of entry, develop the logistics network, set up technical centres to help companies meet export standards, and push ahead with strongly improving the business climate, Thúy added. — VNS

 

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