47,000 enterprises established in Jan-Oct still inactive

Vietnam’s Ministry of Planning and Investment (MoPI) on October 26 said that in the first ten months this year, about 63,920 enterprises have made business registrations with a total pledged capital of about 397 trillion dong.
Deputy Minister of planning and investment, Nguyen Van Trung offered a remarkable figure that in the first nine months this year, 57,000 enterprises have made business registrations but only 10,000 firms of them actually joined the market and 47,000 remainders were inactive.

“This has never happened in past 20 years, which indicated difficulties in many enterprises” Trung said.

The total retail sales and services in October are estimated to have reached some 167 trillion dong, rising 1.55% over previous month. Totally in Jan-Oct, the figure is estimated to have reached 1,561 trillion dong, a year on year increase of 23.1%.

According to Nguyen Van Tu, deputy director of Hanoi Department of Planning and Investment said that this rise is mainly in Hanoi and HCM City.

The general index of industrial production (IIP) in Jan-Oct is estimated to have posted a rise of 7% on year, of which, processing industry sector saw a rise of 10.2%, production and distribution of electricity, gas and water increased 9.4% on year.

The production value in sectors such as coal, textiles, seafood, powdered milk, sugar, beer, tobacco, ready-made clothes also posted a year on year increase.

Business survey results in 2011 conducted by HCM City Statistics Bureau show that the number of businesses in the city as of December 31, 2010 was still up 23.3% on year, this increase was mainly in non-state business sector.

Accordingly, the city has 96,206 active enterprises, up 18,138 firms, including non-state firms, foreign-invested enterprises, and state-owned enterprises. Two sectors of trade and hotel-restaurant posted the most impressive growth with 42,247 active enterprises, increasing additional 7,940 firms, accounting for 43.8% of the total additional firms in 2010. – Source: Vietbiz24.com

Tags: Vietnam companies, Vietnam enterprises, Vietnam SMEs