Vietnam new business creation expands at record rate in Jan-Apr
The growing number of newly established enterprises shows the local economy is firmly on the recovery track, being an attractive destination for businesses.
The number of newly established enterprises in the first four months of 2021 rose by a record rate of 17% year-on-year to nearly 44,200, according to the Business Registry Agency.
|Data: GSO. Chart: Hai Yen|
Such figure remained in stark contrast to a contraction of over 13% in the same period of last year, which the agency noted as an “encouraging sign” for the economy.
Wholesale, retail, and automobile repair made up the highest number of new enterprises with around 14,700, followed by construction (5,740) and manufacturing and processing (5,540).
Total registered capital added to the economy was estimated at around VND1,420 trillion (US$61.88 billion), representing an increase of 26% year-on-year, of which, the capital from new enterprises accounted for nearly VND628 trillion (US$27.36 billion), the highest in a four-month period.
“The growing number of newly established enterprises shows the economy is firmly on the recovery track and also the confidence of the business community towards the economic outlook,” the Business Registry Agency noted in a report.
|A garment factory in Dong Anh district, Hanoi. Photo: Chien Cong|
Meanwhile, the number of enterprises withdrawing from the market continued its upward trend, especially micro and small ones, which indicates the lingering impacts of the pandemic on the local economy.
During the four-month period, around 51,500 enterprises exited the market, with 28,350 temporarily suspending operation and other 16,400 on the process of dissolution.
The majority of those leaving the market operate on fields of logistics, healthcare, education, real estate and agriculture.
The report also revealed up to 91% of such enterprises have an average registered capital of below VND10 billion (US$436,000) and less than five years of operation.
The agency suggested these are the most vulnerable subjects under the pandemic, for which most were forced to shut down in short-term to wait for government’s supporting policies or new business opportunities before deciding on the next step.
- Vietnam, Russia issue joint declaration to shape bilateral relations until 2030
- Circular economy - A chance of sustainable future
- Vietnam's businesses registration surge by 45% in November
- Vietnam Airlines begins commercial nonstop flights to the US
- Hanoi opens 1,000 retail points for 2021 Promotion Month
- Vietnam Online Shopping Week & Online Friday 2021 start from November 27
- Business opportunities between EU and Vietnam essential for recovery
- E-commerce helps Vietnamese companies cope with the pandemic: Experts
- AEAU opens up huge opportunities for Vietnam-Russia economic cooperation
- Vietnam - Australia Trade and Investment Promotion Center debuts
Wind power to lead Vietnam’s pathway to net-zero target: international experts
Hanoi to pour US$19.2-billion in housing development in 2021-2025 period
Vietnam manufacturing conditions improve in second month running
Fostering creativity from Hanoi’s cultural resources
Wild pear flower season comes early on the streets of Hanoi
Businesses recovery vital for Vietnam’s economic prospects: Expert
Safe, flexible adaptation to Covid-19 remains priority for Vietnam in 2022
Vietnam joins the world to end violence against women
Japanese giants pledge further support for Vietnam