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Number of newly-established firms in Jan-Apr hits new record
Thursday,  4/29/2021, 16:19 

Number of newly-established firms in Jan-Apr hits new record

The Saigon Times

Residents carry out procedures for business establishment at the Department of Planning and Investment of Binh Duong Province. The number of newly-established enterprises in the first four months of the year is the highest ever – PHOTO: VNA

HCMC – In the first four months of 2021, nearly 44,200 new enterprises were established, up 17% over the same period last year and the highest-ever recorded for the period, according to the Business Registration Department under the Ministry of Planning and Investment.

The result was positive as the number of newly-established enterprises fell over 13% in the same period last year due to the pandemic, news site VnExpress reported.

The retail, wholesale and auto and motorbike repair sectors saw the highest number of newly-established enterprises at nearly 14,700, followed by the construction sector with 5,700 companies and the processing and manufacturing sector with 5,600 firms.

However, the real estate, healthcare, social welfare, service, education and logistics sectors reported the highest growth in the number of new enterprises.

New firms registered total capital of nearly VND628 trillion, also an all-time high for the period.

According to the Business Registration Department, the increase in newly-established firms highlighted the recovery of the economy and enterprises’ confidence in the country’s economic development prospects in the coming periods.

However, the number of enterprises withdrawing from the market in the first four months of the year also increased to some 51,500, mainly the small ones. Of the total, 28,350 businesses temporarily stopped operations for a certain period and 16,400 others completed procedures for disbandment.

Firms withdrawing from the market were mainly those in the healthcare, education, mining, property and agriculture sectors. More than 91% of enterprises suspending their operations and 89% of dissolved firms had charter capital of less than VND10 billion and operated for less than five years.

According to the Business Registration Department, they were vulnerable to the pandemic. Many enterprises have chosen to suspend operations to review the development of the market, seek new business plans or wait for the Government’s support policies.

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