For every two new enterprises, there is one quitting

May 02, 2018 | 15:14
In the first four months, there were 41,295 newly-established enterprises, while the number of those registering to temporarily cease operations was 26,277.
for every two new enterprises there is one quitting
A total of $51.15 billion was registered by new enterprises in the past four months

The Ministry of Planning and Investment’s Business Registration Agency has just published its latest report on enterprise registration in the first four months.

14,510 new enterprises were established in April with the total registered capital of VND133.5 trillion ($5.9 billion), up 79.5 per cent in number and 64.5 per cent in registered capital compared to March. The average of registered capital per business was VND9.2 billion ($405,300), a decrease of 8.3 per cent.

Additionally, 3,281 enterprises resumed operations in April, an increase of 82.2 per cent against the previous month, while 6,138 enterprises registered to temporarily cease operations (up 71.3 per cent), and 1,378 completed dissolution procedures (up 74 per cent).

In the first four months, there were 41,295 newly-registered enterprises with the total registered capital of VND412 trillion ($18.15 billion), up 4.3 and 11.5 per cent on-year. The average registered capital was VND10 billion ($440,500), up 6.8 per cent.

Including the VND749 trillion ($33 billion) of the nearly 12,200 enterprises that adjusted capital, the total registered capital in the first four months was VND1.161 quadrillion ($51.15 billion).

In addition, 11,442 enterprises resumed operations, which is 0.9 per cent less than in the same period last year, thus the total number of new and resumed enterprises in the first four months was 52,700.

This included 14,100 newly-established enterprises in wholesale and retail, accounting for 34.2 per cent of the total. The construction sector ranked second with 5,700 newly-established enterprises, making up 13.7 per cent. The processing and manufacturing industry ranked third with 5,100 newly-established enterprises (12.3 per cent).

The number of enterprises ceasing business in the first four months was 26,277, down 4.1 per cent in comparison to the same period last year, including 14,187 enterprises that temporarily ceased operations and 12,090 enterprises awaiting dissolution. The number of enterprises that have completed dissolution procedures was 4,699, which increased by 15.8 per cent.

Thus, 250 enterprises dissolved and suspended operations per day in the first four months.

By Nguyen Huong

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