The data just released by the General Statistics Office shows that, although the number of newly established businesses continues to grow, the registered capital is increasingly shrinking, even lower than at the peak of the COVID-19 epidemic in the third quarter of 2021.
In October 2022, the whole country had more than 13,000 newly established enterprises, an increase of more than 58% over the same period last year. Despite the prosperity in quantity, the average registered capital is getting smaller and smaller. On average, the registered capital of each enterprise is about 8.2 billion VND, lower than even when COVID-19 had a heavy impact in the third quarter of 2021.
In the first 10 months of 2022, the total number of enterprises registered for new establishment and return to operation reached more than 178,000 enterprises, an increase of more than 38% over the same period last year. On average, nearly 18,000 businesses are newly established and returned to operation a month.
By economic sector, service is the dominant sector in terms of the number of newly established enterprises, reaching more than 93,000 enterprises, an increase of more than 39%.
Explaining the sharp increase in the number of newly established businesses in the service sector, the General Statistics Office said that production and business activities in October 2022 will continue to recover, especially the service sector is forecasted to be more active in the last months of the year, so the number of newly registered businesses in the trade and service sector will increase.
The report on business trends investigation of enterprises in the processing and manufacturing industry by the General Statistics Office shows that businesses assessing business trends will continue to improve. The majority of business opinions expressed their expectation that the business situation in the last months of the year would be better, or remain stable.
However, there is still a part that thinks that, in the last months of the year, businesses still have to face many difficulties and challenges.
The biggest worry of enterprises today is the decrease in demand in the domestic and international markets, followed by financial difficulties, lack of raw materials and materials, and failure to recruit workers according to high loan interest rate requirements…
In the 10 months of 2022, on average, there are still more than 12,000 businesses withdrawing from the market a month.
- Businesses increase investment despite COVID-19 rebound
- Number of newly established enterprises rises 18.4% in October
- Number of enterprises resuming operation increases by nearly 30% in October
- Vietnam has 75,200 new firms in seven months
- Number of newly-established enterprises tops 13400 in August
- Number of new firms up 36 percent in May
- Newly established firms estimated at 99000 in first nine months of 2020
- Vietnam sees new firms up 70.4% in fourth quarter
- Nearly 400 enterprises leave market everyday in Jan-May