Business formations in Vietnam maintains growth momentum, up 28% m/m in June
Business formations in Vietnam maintains growth momentum, up 28% m/m in June
The number of newly established enterprises in Vietnam in the first six months of 2020, however, fell 7.3% year-on-year to 62,000.
Two months after the end of social distancing orders in Vietnam, economic activities have gradually returned to normal and led to a surge of 27.9% month-on-month in new business formations to 13,700 in June, according to the General Statistics Office.
Business formations in Vietnam maintains growth momentum to 28% m/m in June.
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This month also witnessed a sharp month-on-month increase of 23.4% in combined registered capital to VND139.1 trillion (US$5.97 billion). Employees recruited by new enterprises rosee 9.4% to 100,000.
However, the number of newly-established enterprises in Vietnam in the first six months of 2020 was over 62,000 with registered capital of a combined VND697.1 trillion (US$30.07 billion), dropping 7.3% in number and 19% in registered capital year-on-year. Average registered capital per newly-established enterprise was VND11.2 billion (US$483,169) during this period, down 12.5% year-on-year.
Taking into account VND984.4 trillion (US$42.47 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in the January-June period was VND1,681.5 trillion (US$72.55 billion), down 22.5% year-on-year.
The government-run office informed that 25,200 enterprises resumed operations, an increase of 16.4% against the comparable period last year, bringing the total number of newly-registered and reinstated enterprises in the six-month period to 87,200, down 1.5% year-on-year.
The GSO added that the number of laborers of newly-established enterprises between January and June was 507,200, down 21.8% against the same period last year.
During this period, the number of enterprises temporarily ceasing operations surged 38.2% year-on-year to 29,200.
Moreover, the number of enterprises which completed procedures for bankruptcy was down 5% to 7,400.
A survey on the business sentiment in the manufacturing and processing in the second quarter of 2020 revealed 27.3% of enterprises saw improvements in business performance compared to the previous quarter; 40.8% were facing difficulties and 31.9% said their business is stable.
For the third quarter of 2020, 49.1% of the surveyed enterprises predicted positive outlook for their operation compared to the second quarter; 19.4% expected difficulties and 31.5% saw stability.
