Vietnam's business formations rise 4.4% to 29,700 in Q1 despite Covid-19
A survey in the manufacturing and processing in Q1 revealed nearly 60% of enterprises saw stability and even improvements in business performance compared to the previous quarter.
Vietnam has seen a total of 29,700 enterprises set up with registered capital of a combined VND351.4 trillion (US$14.94 billion) in the first quarter this year, up 4.4% in number but down 6.4% in registered capital year-on-year, according to the General Statistics Office.
| Data: GSO. Chart: Hai Yen. |
Average registered capital per newly-established enterprise reached VND11.8 billion (US$501,782) during this period, down 10.4% year-on-year.
If including VND552.4 trillion (US$23.49 billion) of additionally capital pumped by operational enterprises, total registered capital added to the economy in the first quarter was VND903.8 trillion (US$38.44 billion), down 17.7% year-on-year.
Most of the newly-established enterprises are in the fields of wholesale, retail, automobile repair with 10,015 enterprises, up 6.9% year-on-year. New businesses in the construction sector totaled 3,941, up 3.7%; manufacturing and processing with 3,685, up 2%; science, technology, consultancy, design, advertising and others with 2,788, up 17.5%, among others.
Besides, 14,800 enterprises resumed operation, a decline of 1.6% against the similar period last year, bringing the total number of newly-registered and revived enterprises in the three-month period to nearly 44,500.
Total number of laborers of newly-established enterprises in the January – March period was 243,700, down 23.3% against the same period last year, according to the government-run agency.
The government-run office noted that due to impacts of the Covid-19 pandemic, the number of enterprises temporarily ceasing operation in the period surged 26% year-on-year to 18,600. Moreover, the number of enterprises which completed procedures for bankruptcy in the period was 4,100, of which 3,700 enterprises had a capital base of less than VND10 billion (US$425,363), down 1.3%.
In March, the number of newly-established enterprises reached 12,272, with registered capital of VND131.4 trillion (US$5.58 billion), representing increases of 33.9% in the number of enterprises and 35.7% in registered capital month-on-month.
A survey on the business sentiment in the manufacturing and processing in the first quarter showed 20.9% of enterprises saw improvements in business performance compared to the previous quarter; 42% were facing difficulties and 37.1% said their businesses were stable.
For the second quarter of 2020, 38.8% of the surveyed enterprises predicted positive outlook for their operation compared to the first quarter; 25.9% expected more difficulties and 35.3% saw stability.
