New business establishment still increases despite inflation

According to the Ministry of Planning and Investment, in the first 5 months of the year, 32,300 new enterprises were established with an estimated registered capital of over 194,900 billion VND. Thus, although the number of newly established enterprises still increased slightly, the registered investment capital decreased.

According to the Ministry of Planning and Investment, in May alone, over 5,500 enterprises registered for business, with a total registered capital of over VND40,200 billion. In total, from the beginning of the year until now, there have been 32,300 newly established enterprises with an estimated registered capital of over VND194,900 billion, equal to 101% in number of enterprises and 95% in registered capital compared to the same period last year.

Newly established businesses are forced to calculate more carefully about their business fields, scale of operations and investment capital in times of inflation.
Illustration photo

If we estimate the first 6 months of the year, there will be about 39,000 businesses registered, with capital of about 232,000 billion VND. Compared to the same period last year, the number of newly registered businesses will increase by 4% but registered capital will decrease by 5.4%.

This is completely different from the first 6 months of 2010. At that time, the whole country had about 42,000 registered businesses with a total registered capital of 250,600 billion VND, an increase of 0.25% in the number of businesses but the registered capital increased by 27.8%.

Explaining this difference, economic experts say that in 2011, the economic situation is more difficult but the need to establish a business is still necessary, but business owners are forced to calculate more carefully about the business field, scale of operation and investment capital to ensure reasonableness and efficiency.

According to the Ministry of Planning and Investment, the estimated economic growth in the first 6 months of this year is only 5.6%. The reason is that the Government's economic policies must prioritize inflation control and economic stability. In addition, businesses also face difficulties due to high input costs, and borrowing capital for production is not easy, especially for newly established businesses.

According to GD&TĐ