Increasing number of new firms gives rosy signs to national economy

The number of new enterprises and those resuming their operation this month reached 27,335, up 5.5% year-on-year, and more than 1.3 times higher than the average figure in the 2018-2023 period, statistics show.

The number of new enterprises and those resuming their operation this month reaches 27,335, up 5.5% year-on-year

According to the Business Registration Management Agency under the Ministry of Planning and Investment, 13,536 firms were established in January, a rise of 24.8% from the same period last year, the highest ever recorded for the first month of each year. They added 151.45 trillion VND (6.16 billion USD) to the national economy, a year-on-year increase of 52.8%.

Notably, the recovery pace of the average registered capital has been maintained since November 2023 with 11.2 billion USD per enterprise, up 22.4% year-on-year, the agency said.

The strong recovery signs were seen in such field as real estate, information and communications, processing and manufacturing, and agriculture-forestry-fishery. 

Experts said the figures reflect businesses’ increasing confidence in policies applied by the Government.

However, up to 43,925 firms suspended operation in January, up 25.5%, the highest ever for the first month, raising the total number of those withdrawing from the market this month to 53,888, up 22.8%.

Ha Manh Cuong, Director of Hamakyu Co.,Ltd., pointed to opportunities for businesses, including those generated by free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

He suggested ministries, agencies and localities further support the business community to optimise such deals, while seeding up the signing of others that are under negotiations, in order to boost exports.

Vu Duc Giang, Chairman of the Vietnam Textile & Apparel Association, forecast that the domestic garment-textile sector will grow 9.2% to hit 44 billion USD this year.

With advantages in population, the presence of many world leading groups like Samsung, LG, Foxconn, Panasonic, and Canon and comprehensive strategic partnerships with the US, the Republic of Korea, and Japan that are strong in semiconductors, Vietnam has favourable conditions to foster the industry this year, experts said.

They suggested domestic firms pay more attention to raising their administration capacity and product quality, and revamp their production and business models in anticipation of the wave of investments in high-tech. /.

VNA

• Vietnam treasures role of UNESCO: Foreign Minister (26/04)
• Enterprises want clearer regulations on seafood production (26/04)
• Socio-economic indicators increased over the same period (26/04)
• Connected traffic and upgraded urban areas (26/04)
• Impressions on the development journey (25/04)
• Ben Cat Town awards certificates of 12 typical rural industrial products in 2024 (25/04)
• Binh Duong Customs Department holds dialogue meeting with Korean businesses (25/04)
• Businesses concerned about rising exchange rate pressure (24/04)