New businesses down in July but capital up sharply

Wednesday, 2020-07-29 16:17:37
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July sees the establishment of 13,200 new businesses.
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NDO - The number of new enterprises in July fell by 3.8% from the previous month but registered capital soared by 72% in a sign that business support policies and post-coronavirus recovery plans have begun to take effect.

Official data shows 13,200 new businesses were established this month, with plans to invest VND239 trillion (US$10.3 billion) and hire more than 91,000 workers.

The investment capital of an enterprise averaged at VND18.1 billion, up 78.8% from June but down 60.9% from the same month in 2019.

July also saw 4,839 enterprises returning to business, 3,372 filing for temporary suspension, and another 3,068 awaiting dissolution.

Data for the first seven months of 2020 showed new enterprises were estimated at 75,200 with total registered capital of VND936.4 trillion (US$40.5 billion), down 5.1% in numbers and 6.3% in capital compared with the same period of 2019.

The number of workers recruited by these enterprises also fell by 19.5% to 598,600.

If additional capital by the 21,000 existing firms is counted, total capital injected into the economy in the January-July period will be more than VND2 quadrillion (US$86.4 billion), down 15.4% from a year earlier.

The period saw 28,600 enterprises returning to the market, up 17.6%, but another 32,700 were forced out of business temporarily, up 41.5% from the previous year.