Over 20,000 companies enter the market in the first two months of this year

Over 20,000 companies enter the market in the first two months of this year

The business landscape in the first two months of this year had many challenges, but positive signals have emerged.

A mobile phone assembly line at Samsung's Việt Nam's factory. — Photo courtesy of Samsung

The number of newly registered enterprises in February reached 10,128, marking a 34.36 per cent increase year-on-year, according to the Department of Private Enterprise Development and Collective Economy Development. 

This is a positive indication of a rebound in business registration activity, following a decline in January.

However, due to a significant drop in new business registrations in January, the total number in the first two months reached only 20,781, down 8.9 per cent year-on-year.

Additionally, the registered workforce of newly established enterprises declined by 22.7 per cent, totalling 140,682 employees.

Despite these challenges, an optimistic signal comes from the additional registered capital injected into the economy in the first two months, which amounted to VNĐ709.3 trillion (US$27.8 billion), a strong increase of 66.1 per cent compared to the same period in 2024.

Notably, the additional registered capital from existing businesses reached VNĐ478.9 trillion, surging 131 per cent year-on-year.

The average registered capital per enterprise in the first two months stood at VNĐ11.1 billion, higher than the VNĐ9.6 billion recorded in the same period last year. 

This suggests that new businesses tend to scale up right from the time they register, while investment capital is increasingly concentrated in financially stronger enterprises.

Although the number of newly registered businesses showed signs of recovery in February, the number of enterprises exiting the market remained high, indicating persistent challenges for the business community.

In the first two months of this year, 67,034 enterprises withdrew from the market, with about 84.9 per cent opting for temporary suspension. 

In February alone, 8,262 businesses exited the market, reflecting ongoing financial pressures and an unfavourable environment for some businesses, especially small and medium-sized enterprises.

Among the businesses temporarily ceasing operations, most had been in operation for less than five years, totalling 22,356 enterprises and accounting for 39.3 per cent. The majority were small-scale businesses with registered capital below VNĐ10 billion, with 51,214 enterprises making up 90 per cent.

Despite the still-high business exit rate, a noteworthy point is that the number of enterprises registering for temporary suspension in February was only 3,554, a sharp 93.3 per cent decrease compared to the previous month. 

This may indicate a gradual improvement in the coming months as business support policies take effect and economic conditions stabilise. 

Bizhub