Start-up wave mobilizes capital for economy

Illustration photo

The GSO reported that the rising startup wave continues to serve as a channel mobilizing capital for the economy. 

In the January-May period, 54,000 enterprises were founded, up 3.2% against 2018, marking the record level over the past five years. 

They poured VND 669 trillion of registered capital, up 29.6% against the same period last year. Average registered  capital per enterprise hit VND 12.4 billion, up 25.6% against the same period last year. 

Including VND 987 trillion of additional capital, the domestic economy absorbed over VND 1.6 quadrillion of registered  capital.  

Head of the Department of Industrial Statistics Pham Dinh Thuy said that the big number of new firms reflected the improved business environment which was expected to generate impetus for business development. 

Over the past time, ministries and agencies have spared no effort to implement a series of Government’s resolutions in favor of business development, business environment perfection, simplification of administrative procedures and investment and business conditions. 

Ms. Nguyen Minh Thao, Head of the Business Environment and Competitive Department under the Central Institute for Economic Management (CIEM) proposed competent agencies to speed up reform and effectively serve for the business community in order to promote the startup wave and expand the economy.

The GSO reported that in the first five months, 19,600 enterprises resumed operation, up 48% against the same period last year.

The newly-established firms generated 537,000 jobs, representing a year-on-year growth of 30%. 

According to the GSO, in the first five months, the  service sector had the largest number of newly-founded firms with 38,524 (accounting for 71%); followed by industry and construction with 14,722 (making up 27%); and agro-forestry-fishery sector with 752 (with 1.4%)./.

By Kim Anh