Business

Newly registered capital in August increases by 20.7 percent

SGGP
The Covid-19 pandemic recurred at the end of July, causing industrial production in August this year to continue to face difficulties, the General Statistics Office of Vietnam said in the August report, released on August 29. Meanwhile, the situation of the pandemic did not seem to affect too heavily the sentiment of the business community as the number of newly-established enterprises in August still rose by 1.5 percent with registered capital increasing by 20.7 percent compared to last month.

The electricity generation and distribution sector sees a strong increase in the number of newly-established enterprises. (Photo: SGGP)

The electricity generation and distribution sector sees a strong increase in the number of newly-established enterprises. (Photo: SGGP)

Specifically, the GSO said that the industrial production index in August this year merely advanced 3.5 percent over the previous month and decreased by 0.6 percent over the same period last year. In the first eight months of this year, the industrial production index increased by 2.2 percent, the lowest increase in the past many years.

Meanwhile, the pandemic situation did not seem to affect seriously the psychology of the business community because the number of newly-established businesses in August still increased by 1.5 percent over the previous month, with an increase of 20.7 percent in registered capital.

In the first eight months of this year, Vietnam recorded 88,700 newly-registered enterprises with a total registered capital of more than VND1.22 quadrillion, and a total of 694,900 registered laborers, down 2 percent in the number of enterprises, up 6.5 percent in the value of registered capital, and down 16.5 percent in the number of employees over the same period last year.

Besides, there are 32,600 enterprises resuming operations, an increase of 27.9 percent compared to the same period last year, sending the total number of active enterprises in the first eight months of this year to 121,300 enterprises, up 4.5 percent over the same period last year. On average, there are nearly 15,200 enterprises established and resumed operations each month.

In terms of the economic sector, in the first eight months of this year, there were 1,697 newly-established enterprises in the agriculture, forestry, and fishery sector, up 30 percent over the same period last year, more than 26,300 enterprises in the industrial and construction sector, up 7.7 percent, and 60,600 enterprises in the service sector, down 6.3 percent.

Some sectors and fields saw a rebound in the number of newly-established enterprises, such as electricity, water, and gas production and distribution with 3,394 enterprises, an increase of 247 percent over the same period last year; science and technology, consulting services, designing, advertising, and other specialties with 7,724 enterprises, up 1.9 percent; mining with 454 enterprises, up 1.1 percent. The remaining industries recorded a decrease in the number of newly-established enterprises.

By Anh Phuong – Translated by Thanh Nha

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