A man welds a steel bed
at a furniture factory outside Hanoi. Photo by Reuters/Kham
The new 110,000
businesses could create nearly 1.3 million jobs.
Vietnam saw a record
number of business openings in 2016,
shedding hopes for robust growth and strong investment in the near future.
A new report from the
Ministry of Investment and Planning said the past year saw 110,000 new
businesses open, up 16.2 percent from 2015. Registered capital increased 48
percent to more than VND891 trillion ($39 billion).
These new companies are
expected to create nearly 1.3 million jobs, independent of the nearly 26,700
firms who suspended operations during tough times only to resume operations in
the past 12 months.
Vice Minister Dang Duy
Dong described the numbers as “lively.”
“With such energy and investmentopportunities,
the market will surely be more competitive and the economy will leap strongly,”
the government report quoted Dong as saying.
More than 36,000 new businessescame online in Ho Chi
Minh City and nearly 23,000 in Hanoi.
New openings in the real estate sector increased
almost 84 percent from last year, while education and healthcare openings
increased 43 and 52 percent, respectively.
Arts, entertainment and agriculture
businesses all dropped from last year.
But the ministry’s
report also revealed a dark side of the boom.
Bankruptcies surged 32
percent to nearly 12,578, including in both agriculture and real estate.
Vietnam hopes to see
over one million businesses in operation by 2020, which means an average of
100,000 openings every year.
Source: Bao Vnexpress
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