Capital city sees 12,100 new enterprises in H1

05/07/2018

VGP – According to the municipal People’s Committee, up to 12,100 new enterprises were established in the capital city of Ha Noi in the first six months of 2018, with total registered capital of VND124 trillion (around US$5.46 billion).

Experts said, the rises in the number of newly-established firms and registered capital continued to remain high in the first half of the year.

It shows that investors are likely to have gained more confidence in the domestic business climate thanks to the government’s efforts to improve the legal framework on business and investment and remove barriers for enterprises.​​​​​​

The figures represent a reduction of 3% in the number of businesses but an increase of 31% in the amount of capital compared to the same period last year. 

Most of new companies belong to sectors such as wholesale and retail, car and motorcycle repair and maintenance services, construction, manufacturing and processing.

In addition, the capital city also saw 720 firms completing dissolution procedures in the first half of the year, 32% higher than last year’s corresponding period, the report said, adding that as of June, the city is home to some 251,500 enterprises.

From January to June, the city’s total social investment capital reached an estimated VND128.9 trillion (US$5.67 billion), up by 10% year-on-year.

The registered capital of investment projects outside the State budget hit VND80 trillion (US$3.52 billion), up 19% year-on-year, while foreign investment stood at US$1.2 billion, up by 9.5% compared to the same period last year.

To date, the city has 4,325 valid foreign direct investment (FDI) projects, capitalized at US$27.94 billion, of which US$15.4 billion has been disbursed.

Experts said, to further motivate the development of enterprises, the concerned agencies from the central to local levels should be more active in improving the business climate, removing barriers to create favorable conditions for enterprises.