Newly established firms increase 21% in January

This represents a 21.2% year-on-year increase in the number of new businesses, and a 87% year-on-year increase in capital.

During the month, 4,872 firms also resumed operations, up 69.6% against the same period last year.

According to the GSO, this January had the highest number of firms resuming operation in the past few years, adding that the numbers in January 2014 and January 2015 were 2,375 and 2,872 firms, respectively.

However, the number of firms that have either suspended or shut down operations in the month was also high.

In January, the number of enterprises, which have completed disclosure procedures and shut down operations rose by 34.7% to 1,338. Most of the firms were small-sized, with registered capital of less than VND10 billion (US$456,600) each.

Newly established firms increase 21% in January

Further, companies that have declared a temporary suspension of operations numbered 12,456, up 27.5% year-on-year.

Last year, more than 94,750 businesses were established, with total registered capital of VND601.5 trillion (US$27.46 billion), up 26.6% and 39.1% over 2014, respectively. However, last year also saw more than 9,400 firms dissolved and shut down, inching down 0.4% year-on-year.

According to a GSO survey recently released, many businesses active in the processing and manufacturing industry have been more optimistic about prospects in 2016 thanks to improvements in the final months of last year.

Nearly 41% of respondents said they hope for better prospects this year than seen in the final quarter of last year.

Further, up to 91.1% of respondents were hopeful that the number of new orders will rise or remain stable this year.

To conduct more effective business and production this year, GSO Director General Nguyen Bich Lam said the Government should offer incentive policies on credit, funds and market information access to encourage start-up firms.