Number of newly-established firms in five months highest on record

As many as 64,758 enterprises entered the market in the first five months of this year, marking the highest number ever recorded, and a 4.5% increase from the same time last year, according to the Ministry of Planning and Investment (MPI)’s Business Registration Management Agency. The average registered capital per business reached 9.3 billion VND (over 365,500 USD), up 1.2% year-on-year.

During the five-month p, the country saw 34,067 enterprises resume operations, bringing the total count of new and revived businesses to 98,825 firms, a 4.1% rise from the same period last year, and 1.2 times higher than the figure recorded for the same period each year during 2019-2023. Meanwhile, 97,299 businesses withdrew from the market in five months, dropping 10.5% year-on-year.

The agency said however, the recovery remained humble that reflected challenges in business climate, particularly enterprise adaptation to the global political tensions and market volatility.

In a recent meeting with the MPI, the business community put forth several measures to bolster production and business activities, including mechanisms on effective use of renewable energy, Government support in the update of green production regulations, simplification of procedures to grant new business certificates, and formation of a more favourable and transparent investment climate.

They also highlighted their burdens such as logistics costs, difficulties in container rental, and access to capital.

The MPI said it will continue completing legal documents, promote renewal, listen to enterprises' difficulties and proposed suitable measures and policies to competent authorities.

It suggested associations promote innovation, get updated on international experience and study to invest in the domains of their strengths./.