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
In the first 6 months of 2023, the number of real estate businesses withdrawing from the market had the highest increase among 17 sectors.
According to a report from the Business Registration Department (Ministry of Planning and Investment), business registration data for the first 6 months of 2023 also shows that the real estate business continues to be a pressured and heaviest affected field.
Specifically, the number of enterprises entering the market and the registered capital of newly established enterprises in this field decreased sharply compared to the same period last year (down 58.9% and 54.1 %, respectively).
Meanwhile, the number of real estate businesses withdrawing from the market tends to increase (up 40.4% over the same period in 2022, the highest increase in 17 fields).
This contrasts with the impressive growth in the number of businesses entering the market in the first 6 months of 2021 compared to 2020 (44.8%).
Businesses "hungry for capital."
The Business Registration Department assesses business capital as one of the greatest difficulties that enterprises, in general, are facing.
Statistics show that the registered capital of newly established enterprises in the first 6 months of 2023 decreased by 19.8% compared to the same period in 2022. As well as lower than the average of the first 6 months of the year in 2018-2022. In addition, 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.
In just 3 months, the State Bank has adjusted down 4 times continuously the interest rates with a reduction of 0.5 - 2.0 %/year. However, credit growth is still low; as of June 15, 2023, it only increased by 3.36% compared to 2022, less than a quarter of the year's credit growth target (about 14-15%).
According to the Business Registration Department, the reason for the slow growth of credit is that businesses are now quite difficult, have much inventory, and even some businesses have to reduce employees.
The high price of imported raw materials leads to an increase in commodity prices while the purchasing power of both the domestic and world economies decline, causing difficulties in product consumption due to the lack of orders. This leads to a decrease in the need for new loans for production.
In addition, some businesses have a weak financial situation and need a viable business plan, leading to failing to meet the requirements of banks for loans. On the other hand, market capital sources such as bonds, securities and real estate market recovered slowly.
Recovery signal
Despite the difficult situation, enterprises' production and business situation has shown signs of recovery.
Accordingly, in June 2023, the number of enterprises entering and re-entering the market reached the highest level ever. Specifically, in June, 13,904 newly registered enterprises and 7,098 enterprises were returning to operation (up 215% over the same period in 2022).In addition, in the first 6 months of 2023, about 100,000 businesses withdrew from the market. That is equivalent to an average of 16,600 businesses withdrawing from the market monthly. 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).
