In 2023, Vietnam's economy in general and the production and business situation of domestic enterprises in particular still face many difficulties and challenges. This has significantly affected the development of domestic enterprises.
Packing rice products for export at the factory of Thoai Son Food Company Limited (Loc Troi Group). Photo: Vu Sinh/VNAShock after shock
In 2020 and 2021, the COVID-19 pandemic has negatively impacted almost all aspects of social life. Meanwhile, strategic competition between major countries has been fierce. These are heavy blows to the Vietnamese economy, thereby negatively affecting the development of domestic enterprises. As a result, in 2021, the number of newly established enterprises decreased by 13.4% compared to 2020, while the number of enterprises temporarily suspending business increased by 18%. On average, nearly 10,000 enterprises withdrew from the market each month.
In that context, on January 30, 2022, the Government issued Resolution 11/NQ-CP on the socio-economic recovery and development program and implemented Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program. The implementation of these resolutions has contributed significantly to helping the economy overcome difficulties, while creating a foundation and conditions for businesses to overcome difficulties.
Thanks to that, in 2022, the business development situation has begun to have positive changes. The number of newly established enterprises in 2022 increased by 27.1% compared to 2021 and the number of enterprises returning to operation increased by 38.8%, bringing the total number of newly established enterprises and enterprises returning to operation in 2022 to an increase of 30.3%. On average, there are 17,400 newly established and returning enterprises per month.
However, the number of enterprises temporarily suspending business in 2022 also increased by 34.3%, the number of enterprises ceasing operations pending dissolution procedures increased by 5.5%, and the number of enterprises completing dissolution procedures also increased by 11.2%. On average, 11,900 enterprises withdrew from the market per month.
The trouble is not over yet.
Entering 2023, Vietnam's economy is still facing many difficulties due to the consequences of the COVID-19 pandemic and the adverse effects of the global economic slowdown as well as the Russia-Ukraine military conflict. This negatively affects the development of domestic enterprises.
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Difficulties still lie ahead. Illustration photo: VNA[/caption]However, a bright spot in the picture of business development in Vietnam in 2023 is that the number of newly established enterprises continues to maintain its growth momentum, thereby creating more jobs for domestic workers.
The latest statistics show that in November 2023, the whole country had 14,267 newly established enterprises, with registered capital of nearly VND 153,600 billion and registered labor of nearly 93,700 employees, down 7.6% in the number of enterprises, up 22% in registered capital and down 28.8% in the number of employees compared to October 2023.
Compared to the same period last year, the number of newly established enterprises increased by 19.5% in quantity, 47% in registered capital and 26.6% in number of employees. The average registered capital of a newly established enterprise in November was VND 10.8 billion/enterprise, up 32% over the previous month and up 23% over the same period in 2022. During the month, the whole country also had 6,562 enterprises returning to operation, up 16.6% over the previous month and up 4.7% over the same period in 2022.
In the first 11 months of 2023, the whole country had more than 146,000 newly registered enterprises with a total registered capital of nearly 1.37 million billion VND and a total registered number of employees of 974,100, an increase of 6% in the number of enterprises, a decrease of 7.9% in registered capital and an increase of 7.2% in the number of employees compared to the same period last year. The average registered capital of a newly established enterprise reached 9.4 billion VND, a decrease of 13.1% compared to the same period last year. The total registered capital added to the economy was 3.15 million billion VND, a decrease of 29.4% compared to the same period last year, of which the additional registered capital of enterprises with increased capital was more than 1.78 million billion VND, a decrease of 40.1%.
In addition, nearly 55,500 enterprises returned to operation, down 2.5% compared to the same period last year, bringing the total number of newly established enterprises and enterprises returning to operation in 11 months to 201,500 enterprises, up 3.5%. On average, 18,300 enterprises were newly established and returned to operation each month.
By economic sector, in the 11 months of 2023, there were 1,621 newly established enterprises in the agriculture, forestry and fishery sector, down 11.5% over the same period last year; 34,700 enterprises in the industry and construction sector, up 2.6%; 109,700 enterprises in the service sector, up 7.5%.
Also in November 2023, 4,510 enterprises registered to temporarily suspend business for a period of time, down 18% compared to the previous month and up 12.6% compared to the same period in 2022; 6,598 enterprises stopped operating pending dissolution procedures, up 34.7% and up 29.5%; 1,443 enterprises completed dissolution procedures, down 3.9% and up 1.5%.
In the first 11 months of 2023, the number of enterprises temporarily suspending business was 85,400, up 21.7% over the same period last year; nearly 57,200 enterprises suspended operations pending dissolution procedures, up 26.3%; nearly 16,200 enterprises completed dissolution procedures, down 4%. On average, 14,400 enterprises withdrew from the market per month.
In the context that the Government is implementing many drastic measures to support businesses such as increasing public investment; exempting, reducing, and extending taxes, fees, and land use fees;... and the macroeconomic situation has many improvements, it is likely that the number of newly established businesses will continue to increase this month.
However, according to many experts' forecasts, in 2024, the world situation will continue to have complex and unpredictable fluctuations, strategic competition between major countries will still be fierce; protectionism will still "reign" in many countries, especially in developed economies; military hotspots will continue to appear more and more; non-traditional security issues may develop complicatedly... This will certainly negatively affect the recovery of the world economy in general and the Vietnamese economy in particular.
In that context, according to experts, the Government, ministries and localities need to continue to have drastic solutions to support domestic enterprises to overcome difficulties and create a foundation for economic recovery in the coming years./.
Khanh Linh
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