June Sees Record-Breaking Surge in New Business Establishments
In June 2023, Vietnam witnessed a remarkable surge in new business registrations, including resumed operations, reaching a record-high number, according to the Department for Business Registration Management under the Ministry of Planning and Investment. Despite the challenges faced by firms in production and business activities, this development is seen as a positive signal. The month saw 13,904 newly established enterprises, marking a 4.8% increase compared to the same period in 2022. Additionally, 7,098 enterprises resumed operations, reflecting a substantial 215% growth over the same period last year.
In the first half of the year, approximately 113,000 new and resumed enterprises were recorded, averaging around 19,000 establishments each month. However, during this period, about 100,000 enterprises withdrew from the market, including 12,333 in June. The average monthly rate of enterprise withdrawals decreased to 16,600, compared to 17,600 in the first five months and 19,000 in the first four months.
The Department reported a decline in the registered capital of newly established enterprises during the first six months. The total registered capital amounted to VND707,457 billion, accounting for 75-80% of the total registered capital during the same period in pre-Covid years. In comparison, the figures were VND942,648 billion in 2021 and VND882,122 billion in 2022. The average registered capital per new enterprise in the first half of 2023 reached a low of VND9.3 billion, the lowest level recorded since 2017.
Furthermore, the total capital registered by operating enterprises for expansion also experienced a significant 48.1% decrease compared to the same period in 2022. The real estate sector faced the most challenges during the first six months, with a sharp decline of 58.9% in the number of enterprises entering the market and a 54.1% decrease in registered capital compared to the same period last year. Moreover, the number of real estate businesses withdrawing from the market increased by 40.4% compared to 2022, the highest rate among the 17 economic sectors. This stands in contrast to the impressive growth of 44.8% in the number of new real estate businesses in the first half of 2021 compared to 2020.