The picture of business registration in 7 months is still full of caution

The picture of business registration in 7 months is still full of caution

The number of businesses entering and re-entering the market in the first 7 months of 2024 reached 139,490, up 5.8% over the same period in 2023. However, business registration experts still see the caution of the business community.

The first 7 months of 2024 recorded nearly 140,000 businesses entering and re-entering the market.

The report of the Department of Business Registration Management (Ministry of Planning and Investment) on the business registration situation in the first 7 months of 2024 mentioned the comment of Mr. Lim Dyi Chang, Director of Corporate Banking at UOB Vietnam, that "the level of optimism is high, but Vietnamese entrepreneurs are also mentally prepared for upcoming difficulties".

Although business registration figures have shown significant positive signs, business registration experts still see caution in the business community.

The number of enterprises joining continues to increase, but the scale of registered capital decreases.

The number of enterprises entering and re-entering the market in the first 7 months of 2024 reached nearly 140,000 enterprises, the highest level in the 2019-2024 period, 1.2 times higher than the average level in the 2019-2023 period (115,686 enterprises) and maintained stability in the post-Covid-19 recovery period (2022-2024) with an average of over 135,000 enterprises.

The total registered capital added to the economy in the first 7 months of 2024 reached VND 1,773,804 billion, equal to 0.8 times the average of the period directly affected by the Covid-19 pandemic (2019-2021).

“The average registered capital per enterprise reached VND9.0 billion, down 3.6% compared to the same period in 2023. The above figures reflect the “cautiousness” of the business community regarding business expansion plans,” the Department of Business Registration Management commented.

Synthesizing data, 9/17 industries have an increase in the number of newly established enterprises compared to the same period in 2023, of which transportation and warehousing is at the top (up 20.4%).

Following behind are the wholesale, retail, auto and motorbike repair industries, with an increase of 14.0%...

Although in the growth group, newly registered enterprises in the real estate and construction industries increased low, at 2.5% and 1.1% respectively.

Meanwhile, accommodation and food services and mining recorded a decrease in the number of newly established enterprises, down 10.7% and 14.5% respectively...

The total number of registered employees of newly established enterprises in the first 7 months of 2024 was 600,395 employees, an increase of 2.0% over the same period in 2023.

The number of enterprises returning to operation in the first 7 months of 2024 was 44,273, an increase of 4.7% over the same period in 2023. Notably, 12/17 sectors recorded this return. Of which, the real estate business sector had 1,948 enterprises returning, an increase of 25.8%.

The number of businesses withdrawing is still large, but more than half choose to temporarily suspend for the short term.

In the first 7 months of 2024, 125,456 enterprises withdrew from the market. This number was significantly lower than the number of enterprises entering and re-entering the market. “This is a clear demonstration of the Government's timely instructions to remove difficulties and clear institutional “bottlenecks” for enterprises. Contributing to strengthening the confidence of the business sector to overcome difficulties and stabilize production and business,” the Department of Business Registration Management commented.

However, compared to the same period in 2023, the number of businesses withdrawing in the first 7 months of 2024 increased by 10.7%. Of which, the majority of businesses chose to temporarily suspend business in the short term (accounting for 62.2%).

Specifically, the number of enterprises temporarily suspending business is 78,002, an increase of 16.7% over the same period in 2023. Most of the enterprises temporarily suspending business have been operating for less than 5 years, with 33,735 enterprises (accounting for 43.2%); mainly concentrated in small scale (under 10 billion VND) with 69,774 enterprises (accounting for 89.5%, an increase of 17.6% over the same period in 2023).

The number of enterprises waiting for dissolution procedures is 35,531, down 1.5% compared to the same period in 2023. These enterprises are mainly in the capital scale of less than 10 billion VND (31,694 enterprises, accounting for 89.2%).

The number of dissolved enterprises was 11,923, an increase of 14.5% over the same period in 2023. Of which, 13/17 main business sectors had an increase in the number of dissolved enterprises compared to the same period in 2023.

Business registration situation in July 2024, compared to the same period in July 2023
- Enterprises entering and re-entering the market: 14,735, up 7.3%
- Registered capital: 110,408 billion VND, down 13%
- Businesses returning: 8,201, up 16.8%
- Enterprises withdrawing from the market: 15,602, up 13.7%

Source: Department of Business Registration Management, Ministry of Planning and Investment

Source: https://baodautu.vn/buc-tranh-dang-ky-doanh-nghiep-7-thang-van-nang-tam-ly-than-trong-d221025.html