The rate of newly established enterprises with capital of more than VND 100 billion increases greatly

In the first quarter of 2021, Vietnam had 29.3 thousand enterprises registered for new establishment with a total registered capital of VND 447.8 trillion. Photo: Hương Dịu

According to the General Statistics Office, the number of firms suspending operations for a definite period increased by 28.2% over the same period in 2020; companies completing dissolution procedures increased by 26.4%, most of them are young, small-scale, vulnerable due to negative external influences. The survey results on business trends of enterprises in the manufacturing and processing industry showed firms expect their production and business in the second quarter of 2021 to be better than in the first quarter of 2021.

In the first quarter of 2021, Vietnam had 29.3 thousand enterprises registered for new establishment with a total registered capital of VND 447.8 trillion and the total number of registered employees was 245.6 thousand, down 1.4% in the number of businesses, up 27.5% in registered capital and increasing 0.8% in the number of employees over the same period last year.

The average registered capital of a newly established enterprise in 3 months reached VND 15.3 billion, up 29.2% from the same period last year. If including VND 525.3 trillion of additionally registered capital of 9.6 thousand enterprises that increased capital, the total additional registered capital to the economy in the first three months of 2021 is VND 973.1 trillion.

Besides, there are 14.7 thousand enterprises returning to operation, down 0.5% compared to the same period last year, bringing the total number of newly established enterprises and enterprises back to operation in the first three months in 2021 up to 44 thousand enterprises, on average, there are nearly 14.7 thousand newly established enterprises and returning to operation each month.

Also in the first three months of this year, 40.3 thousand enterprises suspended operations for a definite period, stopped operating and waited for dissolution procedures and completed dissolution procedures, up 15.6% from the same period in 2020. On average, 13.4 thousand enterprises withdrew from the market each month.

Survey results on business trends of enterprises in the manufacturing industry in the first quarter of 2021 showed 29.6% of enterprises evaluating their business situation in the first quarter of 2021 was better than the fourth quarter of 2020, while 31.4% of businesses evaluated that it was difficult and 39% of businesses stated that business and production situation was stable.

Regarding the forecast of quarter 2/2021 comparing with quarter 1/2021, 51% of businesses evaluated the trend would be better; 14.9% of businesses forecast it would be more difficult and 34.1% of businesses thought that the business and production situation would be stable.