The Vietnamese business community is showing great spirit and initiative
The total registered capital of the enterprises reached VND98.3 trillion (US$4.31 billion), up 8.9% year-on-year.
January also saw more than 3,520 existing enterprises raising their capital by VND218 trillion, while nearly 4,600 enterprises resumed their operations, according to the ministry.
The average registered capital by each enterprise this month was VND9.1 billion (approximately $400,000), down 10% year-on-year. Meanwhile, the number of employees in the newly-established enterprises was 85,300 people, marking a yearly decrease of 18%.
According to the MPI’s statistics, new enterprises were concentrated mainly in the wholesale, retail, automobile and motorbike repair fields, reaching more than 3,800 and accounting for 35.1% of the total enterprises. Additionally, there were 1,380 enterprises operating in the construction sector (12.7%) and 1,320 enterprises in the processing and manufacturing industry (2.2%).
Regarding registered capital, the construction sector took the top spot with more than VND20.61 trillion ($904 million), accounting for 21%. The real estate sector came second with VND17.56 trillion ($770 million) or 18%, while the automobile and motorbike trading and repair sector ranked third with VND17.17 trillion ($753 million) or 17.5%.
Last year, the number of newly-established firms in Vietnam hit 126,859, an increase of 15.2% compared to the previous year and the highest figure in the country’s history.
The data demonstrates that there is a strong wave with huge potential within the Vietnamese business community.
The Vietnamese economy has never witnessed such a strong gusto for entrepreneurship propelled by the determination of the central and local regulators and spirited investors and individuals—the wave has even spread to younger people who are still attending school, with a strong startup movement gradually developing towards high quality.
The boom in the number of newly-established companies has surpassed even the most optimistic expectations. This proves that the enterprising spirit of the Vietnamese populace is only getting ready to bloom, awaiting favorable conditions.
The new wave of business has emerged after the Party and the State started paying increased attention to private business sector development. The Resolution issued at the 12th Party Central Committee's 5th meeting not only affirms the role of this dynamic economic sector, but also identifies a range of practical policies to promote private sector development. These policies have been clearly transferred to the newly issued Small and Medium Enterprise Support Law.
To concretize the Party’s policies, over the past few years, the Government has issued various resolutions on improving the business environment, reforming administrative procedures, and facilitating the development of enterprises. The Government has actively urged relevant ministries and sectors to review and abolish thousands of unreasonable business conditions and sub-licenses that impede the healthy development of the economy and lead to harassment and corruption.
The heightened quality of the remaining business conditions will play an important role in driving this new wave to new heights. Furthermore, the rising confidence in business is the surest guarantee for high and sustainable economic development.