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 / Economy / Industry
Business formations in Vietnam maintains growth momentum, up 28% m/m in June
Hai Yen 13:41, 2020/06/29
The number of newly established enterprises in Vietnam in the first six months of 2020, however, fell 7.3% year-on-year to 62,000.

Two months after the end of social distancing orders in Vietnam, economic activities have gradually returned to normal and led to a surge of 27.9% month-on-month in new business formations to 13,700 in June, according to the General Statistics Office. 

 Business formations in Vietnam maintains growth momentum to 28% m/m in June.

This month also witnessed a sharp month-on-month increase of 23.4% in combined registered capital to VND139.1 trillion (US$5.97 billion). Employees recruited by new enterprises rosee 9.4% to 100,000.

However, the number of newly-established enterprises in Vietnam in the first six months of 2020 was over 62,000 with registered capital of a combined VND697.1 trillion (US$30.07 billion), dropping 7.3% in number and 19% in registered capital year-on-year. Average registered capital per newly-established enterprise was VND11.2 billion (US$483,169) during this period, down 12.5% year-on-year.

Taking into account VND984.4 trillion (US$42.47 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in the January-June period was VND1,681.5 trillion (US$72.55 billion), down 22.5% year-on-year.  

The government-run office informed that 25,200 enterprises resumed operations, an increase of 16.4% against the comparable period last year, bringing the total number of newly-registered and reinstated enterprises in the six-month period to 87,200, down 1.5% year-on-year.

The GSO added that the number of laborers of newly-established enterprises between January and June was 507,200, down 21.8% against the same period last year.

During this period, the number of enterprises temporarily ceasing operations surged 38.2% year-on-year to 29,200.

Moreover, the number of enterprises which completed procedures for bankruptcy was down 5% to 7,400.

A survey on the business sentiment in the manufacturing and processing in the second quarter of 2020 revealed 27.3% of enterprises saw improvements in business performance compared to the previous quarter; 40.8% were facing difficulties and 31.9% said their business is stable.

For the third quarter of 2020, 49.1% of the surveyed enterprises predicted positive outlook for their operation compared to the second quarter; 19.4% expected difficulties and 31.5% saw stability.

TAG: Vietnam business formation covid-19 coronavirus nCoV pandemic gso 6 months enterprises manufacturing processing
Other news
12:23, 2024/06/13
Vietnam, Germany eye cooperation on energy transition
Germany stands ready to cooperate with Vietnam on energy transition through the Just Energy Transition Partnership (JETP).
11:18, 2024/06/13
Deputy PM presses for new electricity pricing scenarios in June
Any increase in electricity prices should be carefully planned in terms of size and timing to ensure market alignment, reduce losses for EVN, and meet inflation control goals.
15:30, 2024/06/11
UOB predicts Vietnam’s GDP to grow by 6% in Q2
Along with the 6% forecast for Q2, UOB maintains Vietnam’s annual growth forecast at 6% for the year.
14:52, 2024/06/11
Vietnam to release national green criteria
For Vietnamese companies wanting to go international and attract foreign investment, green standards are crucial.
22:10, 2024/06/08
Hanoi to hold dialogue with FDI firms in August
The event will be attended by the representatives of between 50 and 60 foreign companies that are active in Hanoi.
19:25, 2024/06/08
Vietnam's manufacturing boom: Japanese giants see golden opportunity
Japan Business Pitch Vol.1 held in Hanoi aims to explore collaboration opportunities between Japanese and Vietnamese businesses, particularly in the manufacturing sector.