WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Business formations in Vietnam down 2.3% in 2020 amid Covid-19 pandemic
Nguyen Tung 08:24, 2020/12/29
A survey found that 81% of manufacturing and processing enterprises expected stability and even improvements in performance in the first quarter of 2021.

New business formations in December decreased by 18.4% month-on-month to 10,700, but the total number in 2020 remained encouraging at 134,900 amid the Covid-19 impacts, a slightly down of 2.3% year-on-year, according to the General Statistics Office. 

 Business registration process at Hanoi's Department of Planning and Investment. Photo: Pham Hung. 

This month witnessed a surge of 25.3% month-on-month in combined registered capital to VND356.8 trillion (US$15.45 billion) and a fall of 39% in the number of workers hired by new enterprises to 73,000.

The number of newly-established enterprises in Vietnam in 2020 was 134,900 with registered capital of a combined VND2,235.6 trillion (US$96.8 billion), down 2.3% in number but up 29.2% in registered capital year-on-year. Average registered capital per newborn enterprise was VND16.6 billion (US$719,000) during this period, up 32.3% year-on-year.

Taking into account VND3,341.9 trillion (US$144.7 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in 2020 was VND5,577.6 trillion (US$241.52 billion), up 39.3% year-on-year.  

The government-run office informed that 44,100 enterprises resumed operations in the period, an increase of 11.9% inter-annually, bringing the total number of newly-registered and reinstated enterprises in 2020 to 179,000, up 0.8%.

The GSO added that the number of laborers hired by newly-established enterprises this year was 1.04 million, down 16.9% against the same period last year.

During this period, the number of enterprises temporarily ceasing operations surged 62.2% year-on-year to 46,600.

Moreover, the number of enterprises which completed procedures for bankruptcy was up 3.7% to 17,500.

A survey on the business sentiment in the manufacturing and processing sector in the fourth quarter showed 40.6% of enterprises saw improvements in business performance compared to the previous quarter; 24.7% were facing difficulties and 34.7% said their businesses remained stable.

For the first quarter of 2021, 42.8% of the surveyed enterprises predicted a positive outlook for their operation compared to the fourth quarter of this year; 19% expected more difficulties and 38.2% saw stability.

RELATED NEWS
TAG: business formation new enterprises covid-19 coronavirus nCoV pandemic
Other news
14:43, 2024/11/18
Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
The Vietnamese leader urges the aircraft manufacturer to collaborate on technology transfer, airport construction and operation, research, and investment in Vietnam.
21:55, 2024/10/22
Better links with FDI firms to support Hanoi businesses
Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe to boost technology transfer.
15:24, 2024/09/24
Vietnam calls for more US investment in innovation, hi-tech
The Vietnamese leader called on relevant agencies to resolve any challenges faced by investors and enhance the investment climate to encourage greater US investment in Vietnam.
14:13, 2024/09/23
Vietnamese leader urges Boeing to build production facility in Vietnam
Boeing is committed to continuing to support the development of Vietnam's aviation ecosystem, focusing on aviation infrastructure, human resources training, airport construction, and aircraft maintenance facilities.
14:38, 2024/09/17
Foreign capital pouring into Vietnam's real estate market
Experts are optimistic that the 2024 Land Law, once enacted, will help resolve legal bottlenecks and attract more FDI.
16:27, 2024/08/24
Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.