Over 6,400 firms resume operations in Ho Chi Minh City

Over 6,400 firms in Ho Chi Minh City resumed their operations in 11 months of this year despite the COVID-19 pandemic, up more than 21% year-on-year.

Over 6,400 firms resume operations in Ho Chi Minh City

Over 37,500 new enterprises were licensed with a total registered capital of more than VND947 trillion (US$41.1 billion), down 7.3% in volume and up over 58% in registered capital annually.

Meanwhile, more than 126,000 firms changed business registration contents, with additional capital up over 41% year-on-year.

According to the municipal Department of Planning and Investment, over 5,100 firms completed dissolution procedures during the period, a rise of 15.6% compared to the same period last year.

As many as 13,000 companies suspended operations, up 41% annually.

The city is now home to over 443,600 firms with a registered capital of more than VND7 quadrillion.

Remittances merely impacted by COVID-19

Despite negative impacts of the COVID-19 pandemic, remittances HCM City received through commercial banks and economic organisations are forecast to reach US$5.5 billion this year, a slight increase from 2019.

In the first ten months, the figure was US$4.7 billion. Some local commercial banks even posted an annual surge in their remittances.

However, in a broader scale, negative impact of the pandemic on the flow of remittances to Vietnam this year are unavoidable.

The World Bank has projected that remittances to the country might drop by over 7% to US$15.7 billion this year, the first reduction since 2010. In spite of that, in a report by the bank, Vietnam still ranked third in East Asia and Pacific regions in terms of remittance volume, only after China and the Philippines.

Can Van Luc, a banking and finance expert, said Vietnam has carried out good COVID-19 prevention and control work, adding that the over-7-percent decrease can be considered a success given the complicated COVID-19 developments worldwide. Remittances to the Asia-Pacific region, which has a large number of people working overseas, are forecast to go down by more than 10% this year, according to Luc.