Vietnam's economic growth exceeds target

The Vietnam Federation of Commerce and Industry (VCCI) said that in the first half of this year, Vietnam's economy grew beyond its target; the number of newly registered enterprises and those returning to operation grew positively again after a decline in 2023.

VCCI just released a special report on business development in the first 6 months of this year.

First half of this year, Vietnam economy growth exceeded the target. The positive growth of the world and domestic economy stimulates business development, recording the number of registered businesses. new establishment and return to positive growth after a decline in 2023. Businesses temporarily suspend operations pending dissolution procedures.

Vietnam's economy is growing well (photo: VNA).

Manufacturing PMI improved. Business performance in the processing, manufacturing and build more favorable, especially in the second quarter and is forecast to continue this positive trend in the coming time.

However, according to VCCI, many problems have also emerged in the business development situation. The number of businesses withdrawing from the market continues to increase faster than the number of joining. In some regions and economic sectors, the number of joining is even less than the number of withdrawing.

The rate of businesses exiting the market (10.29%) is faster than the rate of entry (5.34%).

“This is not a very positive signal, partly reflecting the fact that businesses continue to face many difficulties in production and business. The average registered capital of newly established businesses has decreased for the third consecutive year, reaching only 9.25 billion VND/business.

The scale of newly established enterprises continues to shrink, in terms of capital. In the current uncertain international context, the gold market has become vibrant in the first months of the year, causing capital from businesses is less positive than in previous years", VCCI commented.

Number of enterprises entering and exiting the market in the first 6 months of the period 2015-2024.

Although recording a modest increase compared to the same period in the 2015-2024 period, the number of enterprises returning to operation in the first 6 months of the year returned to positive growth of 3.86%, with 39,130 enterprises.

Meanwhile, the amount business The number of enterprises temporarily suspending business for a period of time continued to increase rapidly (18.59% compared to the previous year), with 71,356 enterprises. However, enterprises choosing to temporarily suspend business for a period of time, meaning that they still have plans to return to operation.

Notably, VCCI pointed out that the number of enterprises completing dissolution procedures is showing signs of accelerating, with nearly 10,200 enterprises in 6 months (an increase of 15.42% compared to 2023). This is also the year with the highest number of dissolved enterprises in the period 2015-2024.

A series of stores stopped operating and returned the premises.

The results of a recent survey of 30,000 enterprises by the Ministry of Planning and Investment show that most enterprises are facing difficulties in both input and output, especially the output market. Nearly half construction business Asked to say they were having difficulty due to lack of new construction contracts.

Meanwhile, input factors for production and business such as raw material prices, fuel prices, and capital costs are high. The biggest wish of businesses is to reduce lending interest rates with the rate of businesses proposing being 47%, 29% of businesses proposing to continue to cut down on conditions and procedures for borrowing capital.

Enterprises also recommend that the State should have policies to stabilize prices of raw materials, fuel, input materials, and service prices; adjust tax policies, fees, and budget payments, etc.

Source