Vietnam: Revived businesses rise 17.6% to 28,600 in Jan-Jul

The number of businesses resuming operations in the first seven months of 2020 rose 17.6% year-on-year to 28,600, indicating positive effects from the government’s supporting programs for the business community, according to the General Statistics Office. 

Data: GSO. Chart: Ngoc Thuy.

In July, new business formations decreased by 3.8% month-on-month to 13,200. Notably, this month also witnessed sharp increases of 72% month-on-month in combined registered capital of VND239.3 trillion (US$10.31 billion) but saw a decline of  8.7% in the number of workers employed by new enterprises to 91.400.

Overall, the number of newly-established enterprises in Vietnam in the first seven months of 2020 was 75,200 with registered capital of a combined VND936.4 trillion (US$40.37 billion), down 5.1% in number and 6.3% in registered capital year-on-year. Average registered capital per newly-established enterprise was VND12.4 billion (US$534,610) during this period, down 1.2% year-on-year.

Taking into account VND1,158.4 trillion (US$49.94 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in the January-July period was VND2,094.8 trillion (US$90.32 billion), down 15.4% year-on-year.  

Among economic sectors, only electricity, gas and water production and distribution saw the sharpest increase in the number of fresh enterprises with 2,340, up 190.7% year-on-year, followed by the agro-forestry-fishery sector with 1,372, up 20.9%, and the construction and industry sector with 22,000, up 2.1%.

Meanwhile, most of the newly-established enterprises operate in the fields of services with 51,900, down 8.4% year-on-year; wholesale, retail, automobile repair with 25,100 enterprises, down 3% year-on-year. New businesses in the construction sector totaled 9,862, down 4%; followed by manufacturing and processing (9,441, down 6.4%); science, technology, consultancy, design, advertising and others (6,580, down 0.4%), among others.

The government-run office informed the total number of newly-registered and reinstated enterprises in the seven-month period to 103,800, up 0.2% year-on-year.

The GSO added that the number of laborers of newly-established enterprises between January and July was 598,600, down 19.5% against the same period last year.

During this period, the number of enterprises temporarily ceasing operations surged 41.5% year-on-year to 32,700.

Moreover, enterprises which completed procedures for bankruptcy totaled 8,900, down 3.5%, of which 7,900 enterprises had a capital base of less than VND10 billion (US$429,700).