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Vietnam: New firms in real estate industry top in Q1
The Hanoitimes – Among 26,785 new firms established in Vietnam in the first quarter of the year, 1,226 came from the real estate industry, a year-on-year increase of 32.7 per cent.
According to the Ministry of Planning and Investment (MPI), the total registered capital of the firms was nearly VND278.49 trillion (US$12.2 billion) in the period, up 2.7 percent against the same period last year.
Average registered capital in each firm established in the first quarter was VND10.4 billion, a year-on-year increase of 1.5 percent, and the number of workers employed at the firms was 225,389 people, down 22.7 percent against the same period last year.
The first three months also saw 8,449 firms to resume operations while 8,115 firms ceased operations or were awaiting dissolution.
In March alone, some 8,082 firms were set up with total registered capital of nearly VND81.16 trillion, a month-on-month increase of 2.8 percent and 18 percent, respectively.
On average, the registered capital of each firm decreased by 20.3 percent to VND10 billion in March. The number of employees of the new firms in the reviewed period saw a modest decline of 3 percent to 68,979.
Besides, there were 1,801 firms returning to operation in only March, down 22.3 per cent against the previous month.
Vietnam has around 600,000 operating firms currently, of which more than 90 percent are small and medium size. The government aims to ramp up the figure to one million by 2020.
The number of newly-established firms last year alone hit a record of nearly 127,000, with a combined registered capital of nearly VND1.3 quadrillion (US$57 billion), year-on-year rises of 15 percent and 45 percent, respectively. Average registered capital was VND10.2 billion per company in 2017, increasing by 26.2 percent against the previous year.
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 slumbering in wait for favorable conditions.
GSO General Director Nguyen Bich Lam said that favorable conditions are needed to increase the number of new businesses and startups in order to realize the target of 1 million enterprises by 2020, suggesting that the State should continue speeding up administrative reform, improving the business climate and legal framework.
Due attention must be paid to restructuring the economy, equitising state-owned enterprises, luring in more foreign direct investment, and facilitating the development of the private sector, while enforcing the Law on Support for Small- and Medium-Sized Enterprises, he said.
Inspection should be strengthened to ensure firms will make reports and provide timely and accurate information for competent agencies for better management, he added.
Pham Dinh Thuy, Director of the GSO’s Industrial Statistics Department, underlined the need to increase inspections and supervision to ensure that businesses operate effectively and legally.
Dialogues between State management agencies at all levels and enterprises should be conducted regularly, thus bettering the legal framework and policies to support enterprises.
The first three months also saw 8,449 firms to resume operations while 8,115 firms ceased operations or were awaiting dissolution.
In March alone, some 8,082 firms were set up with total registered capital of nearly VND81.16 trillion, a month-on-month increase of 2.8 percent and 18 percent, respectively.
On average, the registered capital of each firm decreased by 20.3 percent to VND10 billion in March. The number of employees of the new firms in the reviewed period saw a modest decline of 3 percent to 68,979.
Besides, there were 1,801 firms returning to operation in only March, down 22.3 per cent against the previous month.
Vietnam has around 600,000 operating firms currently, of which more than 90 percent are small and medium size. The government aims to ramp up the figure to one million by 2020.
The number of newly-established firms last year alone hit a record of nearly 127,000, with a combined registered capital of nearly VND1.3 quadrillion (US$57 billion), year-on-year rises of 15 percent and 45 percent, respectively. Average registered capital was VND10.2 billion per company in 2017, increasing by 26.2 percent against the previous year.
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 slumbering in wait for favorable conditions.
GSO General Director Nguyen Bich Lam said that favorable conditions are needed to increase the number of new businesses and startups in order to realize the target of 1 million enterprises by 2020, suggesting that the State should continue speeding up administrative reform, improving the business climate and legal framework.
Due attention must be paid to restructuring the economy, equitising state-owned enterprises, luring in more foreign direct investment, and facilitating the development of the private sector, while enforcing the Law on Support for Small- and Medium-Sized Enterprises, he said.
Inspection should be strengthened to ensure firms will make reports and provide timely and accurate information for competent agencies for better management, he added.
Pham Dinh Thuy, Director of the GSO’s Industrial Statistics Department, underlined the need to increase inspections and supervision to ensure that businesses operate effectively and legally.
Dialogues between State management agencies at all levels and enterprises should be conducted regularly, thus bettering the legal framework and policies to support enterprises.
Source: http://www.hanoitimes.vn/economy/2018/03/81E0C3D9/new-firms-in-real-estate-industry-top-in-q1/