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Number of new businesses hits record high in June

Vietnam News - 29/06/2023 4:32:32 PM

Việt Nam saw a record-high number of new business registrations, including those resuming operations, in June, according to the Department for Business Registration Management under the Ministry of Planning and Investment.
 
This is a positive signal seeing as firms are still facing many difficulties in production and business activities, the department said.
 
There were 13,904 newly established enterprises in June 2023, an increase of 4.8 per cent over the same period in 2022. A further 7,098 enterprises resumed their operations in June, an increase of 215 per cent over the same period in 2022.
 
In the first six months of the year, there were about 113,000 newly established and resumed enterprises. Thus, each month about 19,000 enterprises were set up or resumed operations.
 
Meanwhile, about 100,000 enterprises withdrew from the market during the first six months, including 12,333 enterprises in June.
 
The average number of enterprises withdrawing from the market reached 16,600 per month. This number decreased compared to 17,600 enterprises each month during the first five months and 19,000 units each month during the first four months.
 
The department reported that the registered capital of newly established enterprises continued to decrease during the first six months.
 
The total registered capital of newly established enterprises was just VNĐ707,457 billion, or 75-80 per cent of the total registered capital in the same period of the years affected by the Covid-19 pandemic. The figure was VNĐ942,648 billion in 2021 and 882,122 billion in 2022.
 
The average registered capital per new enterprise in the first six months of 2023 only reached VNĐ9.3 billion, the lowest level for the first six months of the year since 2017.
 
During the six months, total capital that was registered to increase by operating enterprises also decreased by 48.1 per cent over the same period in 2022.  
 
The department also said that the real estate businesses continued to face the most difficulty in the first six months of the year.
 
Both numbers of enterprises entering the market and the registered capital of the new enterprises in the real estate sector decreased sharply compared to the same period last year at 58.9 per cent and 54.1 per cent, respectively.
 
The number of real estate businesses withdrawing from the market increased by 40.4 per cent over the same period in 2022, the highest rate among 17 economic sectors.
 
This was in contrast to the impressive growth in the number of new real estate businesses entering the market at 44.8 per cent in the first six months of 2021 compared to 2020. — VNS
 
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29/06/2023 Number of new businesses hits record high in June