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Number of firms set up in Vietnam surged in March

Publication Date : 31-03-2014

 

The number of firms established in Vietnam in March and their total capital almost doubled from the previous month, according to figures from the Department of Planning and Investment.

There were 7,487 new companies that invested more than 35 trillion dong (US$1.66 billion).

In the first quarter, the number of firms that were incorporated increased by 16.9 per cent year-on-year, almost twice the percentage increase in the number of companies that closed down.

But in Cuu Long (Mekong) Delta provinces, the number of firms that closed down was up 26.1 per cent while the number of start-ups rose by just 2.5 per cent.

Le Xuan Nghia, director of the Business Development Institute, said the figures reflected the churning going on in the economy. Sectors like services, processing and manufacturing are attracting plenty of investments while construction and financial and insurance services have declined, Tien phong newspaper quoted him as saying.

He predicted this process would continue.

Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, said many local firms had matured and started to focus on long-term effectiveness and were pulling out of unstable sectors.

Le Duy Binh, director of the Hanoi-based Economica Company, alluding to the continuing rise in the number of firms being dissolved, said many small firms like his own had little access to government incentives.

Binh recommended the government increase Consumer Price Index (CPI) to improve purchasing power. The government should also ensure social security by reducing value-added tax, and improving social insurance.

Phan Duc Hieu of the Central Institute for Economic Management (CIEM) said all related agencies should work closely together to assist businesses.

"To help enterprises overcome challenges, incentives should be more specific and consistent," he said.


 

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