Vietnam’s new business creation hits record high in Q1

Major cities, such as Hanoi and Ho Chi Minh City, have witnessed a steep rise in new business registration during the January-March period.

Vietnam has seen a total of 34,600 enterprises being set up in the first quarter this year, the highest number to date, according to the General Statistics Office. 

In March, an estimated 14,300 new enterprises were established with total registered capital of VND193.6 trillion (US$8.5 billion), representing sharp increases of 96% and 127% month-on-month, respectively.

Average registered capital per newly-established enterprise reached VND13.5 billion (US$590,422) during this period, much higher compared to the figure from the same period of last year.

In addition, the number of companies resuming operation in March also rose to 4,300, while those temporarily exiting the market or waiting to complete dissolution procedures were estimated at 6,500.

For the January-March period, a total of 34,600 new businesses were formed and 25,600 returned to the market, up 18% and 74% year-on-year respectively, the highest to date.

If including additional capital pumped by operational enterprises, the total registered capital injected into the economy in the first quarter was VND1,170 trillion ($51.17 billion).

Bui Anh Tuan, director of the Ministry of Planning and Investment’s Agency for Business Registration, said the positive figures demonstrated the confidence of the business community after two years of coping with Covid-19 impacts.

Tuan pointed out the bright picture of businesses formation in major cities, including a 24% year-on-year increase in Ho Chi Minh City, and 6.6% in Hanoi, the current largest Covid-19 epicenter in Vietnam.

Meanwhile, the number of businesses that ceased to exist in the first quarter declined by 17% year-on-year to 4,355, with the trend being observed in the majority of economic sectors.

“This is evidence of the greater resilience of businesses, or the fact that they have found better business opportunities to continue expanding their operation,” he said.