The number of newly-established enterprises and enterprises resuming operations continued to set a new record in the first seven months of this year, along with the recovery of the domestic economy.

According to the Business Registration Management Department under the Ministry of Planning and Investment, Vietnam had 13,174 newly-established enterprises with registered capital of nearly VND124 trillion in July. Those increased by 50.7 per cent in the number of enterprises and 1 per cent in registered capital on year.

Therefore, newly established firms in the first seven months of this year were 89,407, up 17.9 per cent over the same period in 2021. This was the highest number of new firms for the first seven months. 

The enterprises registered total capital of more than VND3.3 quadrillion in the first seven months of the year, up 37.2 per cent on year, including more than VND1 quadrillion from newly established enterprises. 

Meanwhile, 31,235 operating enterprises registered an increase of about VND2.3 quadrillion, up 70.5 per cent over the same period in 2021.

Of which, newly established enterprises were mainly in the service industry with 65,700, accounting for 73.5 per cent of the total number of newly established enterprises, up 21.7 per cent on year.

The industry and construction group had 22,468 new enterprises, accounting for 25.1 per cent of the total number of newly established enterprises, up 9.3 per cent.

In the first seven months of 2022, the number of businesses returning to operation was 44,301, an increase of 49.7 per cent on year. 

Thus, the total number of new firms and enterprises re-entering the market in the first seven months surpassed 130,000 for the first time, an increase of 26.8 per cent over the same period in 2021. This number was 1.4 times higher than the number of enterprises withdrawing from the market.

However, according to experts, there are many unfavourable developments causing difficulties for enterprises' production and business activities.

After years of being heavily affected by the COVID-19 pandemic, businesses continue to face difficulties due to high production costs and broken supply chains.

Therefore, there were more than 94,570 enterprises dropping out of the market in the first seven months, an increase of 18.7 per cent over the same period in 2021. Of which, more than 56,000 businesses suspended operations for a short period.

During this period, 28,206 were in the dissolution process, and 10,355 completed dissolution procedures.

Many enterprises said they are facing higher costs, including the price of raw materials, transport and labour, and lack of material, affecting their resilience.

To solve difficulties for businesses, To Hoai Nam, general secretary of the Vietnam Association of Small and Medium Enterprises, said besides continuing to implement existing supportive policies for enterprises, the Government should continue to control prices and handle the pandemic with flexible response plans to reduce costs for businesses.

Source: VNS