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More than 13,900 enterprises in Vietnam registered for new establishment in June

The situation of business registration in Vietnam in June recorded positive signals, the number of enterprises entering and re-entering the market reached the highest level in June so far.

Favorable signs

The Business Registration Administration (Ministry of Planning and Investment) has just released a report on business registration in June 2023.

In June 2023, there were 13,904 newly registered enterprises, an increase of 4.8% over the same period in 2022; 7,098 enterprises returned to operation, an increase of 215% over the same period in 2022. In general, in the first 6 months of the year, more than 113 thousand enterprises were newly established and returned to the market. On average, they established and returned about 19,000 new businesses to operation every month. 

In the same period, the whole country had 12,333 enterprises withdrawing from the market, an increase of 3.1% over the same period in 2022. In general, the first 6 months of 2023 also recorded about 100,000 enterprises withdrawing from the market, on average, 16,600 businesses withdraw from the market every month.

This number has decreased compared to the average rate of enterprises withdrawing from the market in one month of the first 5 months of 2023 (17,600 enterprises) and the first 4 months of 2023 (more than 19,000 enterprises).

According to the Department of Business Administration, these are positive signals in the context of production and business activities of enterprises still facing many difficulties.

The real estate industry is adversely affected.

The registered capital of newly established enterprises in Vietnam continued to decrease (down 19.8% compared to the same period in 2022 and lower than the average rate of VND 806,204 billion in the first 6 months of the year in the period 2018-2022).

The total registered capital of newly founded firms is only VND 707,457 billion, which is 75-80% of the total registered capital of the same period during the Covid-19 epidemic years (in 2021 this figure was 942,648 billion VND and in 2022 it was 882,122 billion VND).

The average registered capital per enterprise in the first 6 months of 2023 only reached VND 9.3 billion, the lowest level in the first 6 months of the year since 2017.

The additional registered capital of operating enterprises also decreased by 48.1% over the same period in 2022.

When the number of firms entering the market and the registered capital of newly established enterprises in this field both declined compared to the previous year, the real estate business remained the most stressed and impacted sector compared to the same period previous year (down 58.9% and 54.1%).

The number of real estate enterprises exiting the market tends to rise (up 40.4% from the same period in 2022, the biggest increase among 17 industries).

This contrasts with the excellent 44.8% increase in the number of enterprises joining the market in the first six months of 2021 compared to the same period in 2020.

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