Record breaking business setups in 2015

Could you share with us the good news of 2015’s business picture?

The national business registration system recorded 94,754 new business setups, a 26.6 per cent jump on-year in 2015, setting a record until now.

Similarly, total registered capital has also soared by 39.1 per cent on-year, amounting to VND601.5 trillion ($27.6 billion). The average capital size of businesses reached VND6.3 billion ($289,000), up 9.9 per cent on-year.

In addition, supplemental capital volumes of existing businesses also rose sharply to VND851trillion ($39 billion). Of newly established businesses, nearly 50,000 units were established in the second half of the year.

Strong improvements in the local business climate, particularly the fresh amendments to the 2014 Law on Enterprises and the 2014 Investment Law, coupled with the enforcement of Government Resolution 19/NQ-CP presenting major tasks and measures to constantly improve the domestic business climate and boost national competitiveness in 2015-2016, have all lead to a high spillover effect on business startups, helping to attract more investors.

A rise in the number of firms resuming operations last year, after temporarily halting operations due to difficulties experienced in the previous years was also encouraging, was it not?

Most definitely, such businesses numbered 21,506 units last year, up 39.5 per cent year-on-year. Notably, in the fourth quarter of 2015 alone, 8,658 businesses had resumed operations, nearly double that of the third quarter and up 144 per cent on-year.

Generally, the favourable business climate has opened up a myriad of business opportunities and helped eliminate feeble business ideas. This is the normal evolution of a healthy economy.

Businesses resuming operations after a period of temporary cessation is good news, as I believe they have undergone restructuring before opening their doors again, to match the ever so competitive market requirements.

Is there anything special in the structure of last year’s newly-founded businesses?

The number of new business setups rose across most fields and sectors, compared to the previous year.

It is encouraging that of the sectors with growth surpassing the 50 per cent mark, agriculture, forestry, and fisheries sector came second with 62.3 per cent growth, while real estate was in first place.

This sector also came second in terms of the number of firms resuming operations last year (up 99 per cent), behind the arts and entertainment sector.

In general, it is good when firms are becoming increasingly involved in diverse fields of agriculture.