Number of new businesses hits decade-high in Q1

Hanoi: The General Statistics Office (GSO) reported a decade-high number of new businesses established nationwide in the first quarter, reaching 36,224. Taking into account enterprises resuming operation, the number reached 59,848. Also in Q1, nearly 74,000 enterprises ceased operations. The majority of them (72.1%) were temporary suspensions, with 53,365 expected to resume operation in the future. A positive sign emerged in March, when the number of newly established businesses and those resuming operation, at 17,136, exceeded that of those temporarily withdrawing from the market (10,531). The GSO report identified small-scale enterprises, which have capital of below 10 billion VND (416,000 USD) as the most common type of businesses exiting the market (nearly 90%). It is also noteworthy that over 74% of those stopping operation were in the service sector. To address challenges and stimulate production and business activities, the GSO proposed that the Government consistently prioritise growth in tandem with ensuring macro-economic stability, controlling inflation and ensuring the major balances of the economy. Its other suggestions include promoting new growth drivers such as fine-tuning mechanisms and laws to pool and effectively use all resources, developing six socio-economic regions and seizing new opportunities arising from the global and regional shifts in supply chains, trade and investment. GSO General Director Nguyen Thi Huong highlighted a need for the Government to boost digital transformation, green transition, circular economy, and emerging sectors such as semiconductor chips and artificial intelligence; draw green financial resources to develop renewable energy, new energy sources and hydrogen; as well as establish and develop global and regional financial centres in Vietnam./. Source: Vietnam News Agency

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