Despite facing challenges, Vietnam has great opportunities to sustain its high economic growth rate.
A slower than forecast recovery of the world economy, a reduction in global trade growth and a slowdown in the commodity market have adversely affected export-driven economies, including Vietnam. The country also faces challenges at home, including complicated weather patterns and climate change as well as slow growth in labour productivity and enterprises’ capacity.
The Government’s programme to restructure the economy and renovate its growth model, its determination to act as a constructive, truthful Government to serve the people and consider the private sector an important driving force of the economy.
These have significantly supported enterprises’ development and motivated innovative start-up programmes. The desire to develop the agricultural sectorusing high-technology would help raise its competitiveness in the global market.
Nearly 26,500 enterprises were created in the first quarter of this year with a total registered capital of over 270 trillion VND (11.8 billion USD), according to preliminary data reported on March 27 in Hanoi by the Ministry of Planning and Investment’s Enterprises Development Department.
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.
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 10.2 billion VND, up 30.9 percent over the same period of 2016.
Existing businesses have registered to increase their capital to over 320 trillion VND, bringing total capital poured into the economy in the first quarter of 2017 to nearly 600 trillion VND, 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 percent out of some 110,000 businesses registered in 2016 declared and paid taxes, indicating that they were already in operation, the department said.