According to the General Statistics Office, in the first five months of 2024, the number of newly established and reactivated enterprises reached 98.8 thousand, while 97.3 thousand enterprises completed procedures for dissolution or temporary suspension of operations.
The number of enterprises entering the market has exceeded those exiting, painting a somewhat brighter picture.
In Q1/2024, nearly 74 thousand enterprises dissolved or exited the market, while fewer than 60 thousand were newly established or resumed operations. In the first four months of the year, the situation improved slightly, with 81.3 thousand enterprises returning to the market or being newly established, though still less than the 86.4 thousand that exited.
It wasn't until the General Statistics Office published the five-month data that the trend of more enterprises exiting than entering the market ended.
This is a crucial foundation for growth prospects in the second half of the year, amidst ongoing uncertainties. Specifically, as of the end of May, the number of newly established and reactivated enterprises reached 98.8 thousand, while 97.3 thousand enterprises completed procedures for dissolution or temporary suspension.
Professor Dr. Hoang Van Cuong, former Vice Rector of the National Economics University, considers this an optimistic signal, indicating a warming confidence among businesses as the government and National Assembly are actively seeking ways to support them.
The global context remains complex, but Vietnam can still expect growth in exports. Inventory levels in major markets worldwide hit bottom in early 2024, leading to a new cycle of shopping and stocking.
This is reflected in the return of orders for businesses. According to Ly Kim Chi, President of the Ho Chi Minh City Food Association, orders for seafood and food products increased by over 30% in the early months of the year compared to the same period in 2023.
Strong export sectors like technology, mechanics, and textiles also saw order improvements. Notably, according to Mr. Cuong, order prices in 2024 are higher, differing from 2023 when businesses had to accept low-priced orders to sustain operations.
As a result, exports surged by 16.6% compared to the same period last year, with electronic components growing by 34%. The trade surplus exceeded 8 billion USD.
Besides exports, domestic consumption demand also showed recovery, growing by 9.5% in May 2024 compared to the same period. Both domestic and international demand are strong, coupled with stable macroeconomic conditions and controlled inflation, fostering business confidence in economic growth prospects.
In reality, although the number of dissolved enterprises remains very high, slightly lower than the number of new entrants, over 66 thousand, or about 68% of exiting enterprises, are temporarily suspending operations.
This means these businesses are not necessarily "dead," but in a "hibernation" phase to avoid negative impacts, awaiting more positive signals. If the economy maintains good indicators as in May, these 66 thousand businesses could soon resume operations to capitalize on the year-end consumption season.
In fact, although the number of new enterprises each month in the last four months has not matched January's figures, there is an increasing trend and each month's new enterprises exceed those exiting the market, considered an optimistic sign.
Of course, it's undeniable that many businesses are "exhausted," forced to leave the market after enduring over four years of continuous challenges.
This situation is somewhat inevitable, as the difficulties of the past four years have been extraordinarily prolonged. Moreover, Vietnamese enterprises are mostly small and medium-sized, with limited accumulation and experience in facing crises.
However, this doesn't warrant full optimism about the economic outlook through the enterprise landscape. According to Deputy Minister of Planning and Investment Tran Quoc Phuong, Vietnamese businesses still face many challenges from both domestic and international contexts.
Therefore, he suggests continuing to alleviate difficulties, particularly in administrative procedures, to facilitate market entry and sustained business operations.
Additionally, supporting businesses through fiscal and monetary policies, ensuring access to capital for enterprises, is crucial.
It can be said that businesses maintaining operations, being newly established, or reactivating in the current context demonstrate entrepreneurial resilience and strong faith in the economy. This faith and resilience can be converted into growth momentum if nurtured by timely support policies and guidance from regulatory agencies.
Source: theleader
Compiled by VietnamCredit
