Number of new businesses sharply decreases in September

Number of newly established companies in September remarkably reduced in both number and registered capital over August, reported the Business Registration Department under the Ministry of Planning and Investment.

Specifically, there were 8,610 companies set up in September with the total capital of VND80,566 billion (US$3.54 billion), down 30.6 percent in number and 38.7 percent in capital over the previous month.

Registered capital by business reached VND9.4 billion ($414,000), down 11.7 percent while the number of workers per a new company was 64,022 , reducing 37 percent.

Explaining the reduction, the Business Registration Department said that this year September fell on the seventh lunar month, so traditionally, businessmen do not want to start their business at that time.

The number of businesses resumed operation in September was 1,946, increasing 21.2 percent compared to August. In addition, 1.564 companies registered to temporarily halt operation, down 6.2 percent; 2,877 companies temporarily shut down without registration or waited for dissolving, hiking 36.4 percent; 982 companies completed dissolving procedures, dropping 14.3 percent.

During the first nine months this year, the country saw an extra of 93,967 newly established companies with the total funds of VND902,682 billion ($39.71 billion), up 15.4 percent in number and 43.5 percent in capital over the same period last year.

Registered capital per business reached VND9.6 billion, up 24.4 percent. Total capital supplemented to the economy was VND2,144 trillion.