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Vietnam’s business registration hitting record high

Vietnam’s business registration hitting record high

Tuesday 26, 04 2022
April 2022 has become the month with the highest number of newly established businesses ever in Vietnam.

New registered business record

April 2022 has become the month with the highest number of newly established businesses ever in Vietnam. The number recorded by the Business Registration Administration (under the Ministry of Planning and Investment) is 15,001 newly registered enterprises.

This number is higher than the average of 13,043 newly established businesses in April of the 2017-2021 period. The number of registered employees of newly established enterprises in April 2022 was 104,757 people, up 10.7% over the same period in 2021.

The number of enterprises

7,034 businesses in Vietnam returned to operation in April 2022, up 22.4% over the same period in 2021.

The number of enterprises returning to operation in the first 4 months of 2022 is 30,919, an increase of 60.6% compared to the same period in 2021. That is also a record level in the number of enterprises re-entering the market in the first 4 months of the year, twice the average level in the same period in 2017-2021 (with 15,506 enterprises).

The sectors with the highest number of businesses returning to operation in the first 4 months of 2022 are wholesale; retail; cars and motorbikes repair (11,945 enterprises, accounting for 38.6%); construction (3,784 enterprises, accounting for 12.2%); processing and manufacturing (3,448 enterprises, accounting for 11.2%), etc.

In April 2022, Vietnam had 10,380 enterprises withdrawing from the market, down 11.6% over the same period in 2021. In which, the number of enterprises dissolved and waiting for dissolution procedures decreased sharply compared to the same period in the same period in 2021.

Recovery is near

In a recent interview, the leader of the Business Registration Administration mentioned that the European Chamber of Commerce in Vietnam has assessed that Vietnam’s business environment is coming close to recovery.

The basis of this assessment is that in the first quarter of 2022, Vietnam's business environment index reached 73 percentage points, up 12 percentage points compared to the fourth quarter of 2021. That is also the highest level since the fourth pandemic outbreak. This uptrend is expected to continue in the coming time.

Vietnam's business environment

The excitement was most evident in businesses in the fields of tourism and services after the government issued a decision to restore international routes and fully open international tourism in March.

In a recent survey, more than two-thirds of businesses believe that Vietnam's economy is likely to stabilize and improve in the second quarter of 2022. Nearly 66% of survey respondents expect revenue to increase in the second quarter of the year, compared with 52% in the previous quarter. Likewise, more than 46% of respondents anticipate an increase in headcount in the next quarter.

The Asian Development Bank (ADB) also highly appreciated the Government's tourism reopening policies implemented in March and expected the lifting of pandemic control measures to boost the service sector, with forecast growth of 5.5%, contributing 2.3% to GDP growth this year.

In addition, many policies to support businesses have been issued, which are having a good impact on businesses' production and business activities, making the business environment transparent.

"The above factors have contributed to creating record numbers of business registration in April and the first four months of 2022," the Business Registration Administration said.

Supports needed still

Ms. Nguyen Thi Huong, General Director of the General Statistics Office, stated that although the business sector has shown signs of recovery, 2022 will continue to be a challenging year for Vietnam’s economy. Therefore, there is a need for fundamental and practical solutions to realize the set goals of the GDP growth target of 6% to 6.5% in 2022.

Accordingly, to achieve the above goal, the reform must be institutional, business environment needs to be more substantive, suitable for competing in an international environment.

“For policies to be put into practice and be more effective, the Government and relevant agencies need to actively and regularly consult the business community and industry associations during the implementation process.” Ms. Huong said.

In addition, it is necessary to step up administrative reform, remove obstacles hindering production and business activities, help enterprises quickly restore production and business, and contribute to bringing the economy back to a high and sustainable growth trajectory.

enterprises

According to many experts, besides institutional reform and business environment, the Government needs to speed up business support programs such as loans with preferential interest rates, digital transformation support for Vietnamese businesses in all fields, building a practical and effective digital economy and digital society, creating maximum favorable conditions for businesses, etc.

In addition, according to economic expert Nguyen Dinh Cung, former director of the Central Institute for Economic Management (CIEM), in the new normal, there is an urgent need to improve the enforcement efficiency of the government apparatus, upholding the personal responsibility of the head in adjusting and adapting to the actual situation, creating an open corridor for businesses to operate.

 

Source: baodautu.vn, vneconomy

Compiled by VietnamCredit

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