The number of newly-established firms rose 11.4 percent and 45.8 percent in capital value compared to the same period last year, the department reported. In March alone, the number of newly-registered firms is estimated at over 12,000, the highest level in six years.

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Workers at a rubber product factory in Ho Chi Minh City’s Tan Quy Industrial Park. Photo: VNS

But in the first quarter, some 9,900 enterprises temporarily ceased operations, 10,700 enterprises are in the process of filing for dissolution, nearly 3,700 enterprises have completed procedures for dissolution or termination, up 12 percent year-on-year. The majority of businesses that withdrew from the market are small firms.

Many firms suspended their activities in order to find new directions or prepare new business plans, said Tran Ngoc Nam, Deputy Director of the Hanoi Department of Planning and Investment.

According to the Enterprises Development Department, the average registered capital per enterprise in the first quarter of 2017 reached VND 10.2 billion, up 30.9 percent over the same period of 2016.

Existing businesses have registered to increase their capital to over VND 320 trillion, bringing total capital poured into the economy in the first quarter of 2017 to nearly VND 600 trillion, up 8 percent year-on-year.

The number of businesses resuming operations exceeded 9,200 in the first quarter of 2017, double the number in the first quarter of 2014. More than 90 per cent out of some 110,000 businesses registered in 2016 declared and paid taxes, indicating that they were already in operation, the department said.

Source: VNA