Vietnam's business formations rise to record high

Vietnam has seen a record high of 138,100 enterprises set up in 2019 with a combined registered capital of VND1,730.2 trillion (US$74.86 billion), up 5.2% in number and 17.1% in registered capital year-on-year, according to the General Statistics Office. 

Data: GSO. Chart: Hai Yen.

Average registered capital per newly-established enterprise has reached VND12.5 billion (US$540,889) during this period compared to the past few years, up 11.2% year-on-year, indicating better health of local companies entering the market. 

If including VND2,273 trillion (US$98.35 billion) of additionally capital pumped by operational enterprises, total registered capital added to the economy in the whole year has been VND4,003.2 trillion (US$173.22 billion). 

Besides, 39,400 enterprises have resumed operation, a rise of 15.9% against last year, bringing the total number of newly-registered and revived enterprises in 2019 to nearly 177,500.

Total number of laborers of newly-established enterprises in 2019 has been 1,730,200, an increase of 13.3% against last year, according to the government-run agency.

The number of enterprises temporarily ceasing operation this year has been 28,700, up 5.9% year-on-year. Moreover, the number of enterprises which finished the procedures for bankruptcy in the year has been 16,800, an increase of 3.2% year-on-year.

A survey on the business sentiment in the manufacturing and processing in the fourth quarter of 2019 revealed 46.7% of enterprises saw improvements in business performance compared to the previous quarter; 17% were facing difficulties and 36.3% said their business is stable.

For the first quarter of 2020, 48.1% of the surveyed enterprises predicted positive outlook for their operation compared to the fourth quarter of 2019; 15.1% expected difficulties and 36.8% saw stability.