Increasing number of new firms a rosy sign for national economy

A steel factory in Long An province

The number of new enterprises and those resuming operations in January reached 27,335, up 5.5 per cent year-on-year and more than 1.3 times the average figure over the 2018-23 period, statistics show.

According to the Business Registration Management Agency under the Ministry of Planning and Investment, 13,536 firms were established in January, a rise of 24.8 per cent from the same period last year, the highest ever recorded for the first month of each year. They added VND151.45 trillion (US$6.16 billion) to the national economy, a year-on-year increase of 52.8 per cent.

Notably, the recovery pace of the average registered capital per enterprise has been maintained since November 2023 at VND11.2 billion, up 22.4 per cent year-on-year, the agency said.

Strong recovery signs were seen in such fields as real estate, information and communications, processing and manufacturing, and agriculture-forestry-fishery.

Experts said the figures reflect businesses’ increasing confidence in policies applied by the Government.

However, up to 43,925 firms suspended operation in January, up 25.5 per cent, the highest ever for the first month, raising the total number of those withdrawing from the market this month to 53,888, up 22.8 per cent.

Ha Manh Cuong, Director of Hamakyu Co, pointed to opportunities for businesses, including those generated by free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

He suggested ministries, agencies and localities further support the business community to optimise such deals, while speeding up the signing of others that are under negotiation, in order to boost exports.

Vu Duc Giang, Chairman of the Vietnam Textile & Apparel Association, forecast that the domestic garment-textile sector will grow 9.2 per cent to hit $44 billion this year.

With advantages in population, the presence of many world-leading groups like Samsung, LG, Foxconn, Panasonic and Canon, and comprehensive strategic partnerships with the US, South Korea and Japan that are strong in semiconductors, Vietnam has favourable conditions to foster the industry this year, experts said.

They suggested domestic firms pay more attention to raising their administrative capacity and product quality, and revamp their production and business models in anticipation of the wave of investments in high-tech.

TB (according to VNS)