Newly-established businesses drop nearly 17% in January

Data from the Business Registration Management Agency under the Ministry of Planning and Investment showed that the average registered capital of a newly established enterprise in the month was only VND9.1 billion, down 8.2% month-on-month and 38.2% year-on-year.

The agency attributed to the declines to the long New Year and Lunar News Year (Tet) holidays that resulted in less working time.

As many as 4,500 businesses increased their capital by VND279 trillion, while 15,100 enterprises resumed operations, up 146.8% compared to the previous month and down 21.2% from the same period last year.

Enterprises withdrawing from the market numbered 43.900, a year on year increase of 14.4%.

To support businesses, General Director of the General Statistics Office Nguyen Thi Huong suggested that ministries and branches continue to ensure adequate supply of raw materials and energy to meet requirements of production and business recovery and socio-economic development; remove difficulties and obstacles for important industrial projects; provide maximum support for factories to maintain and restore production to keep orders and supply chain.

Many manufacturing enterprises also proposed the government continue to strengthen the simplification and transparency of customs procedures to reduce costs.