12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Business formations in Vietnam rise 7.3% m/m in November
Ngoc Thuy 15:37, 2020/11/30
The total number of newly-registered and reinstated enterprises in the eleven-month period reached 165,100, up 0.9% year-on-year, averaging 15,000 per month.

Vietnam’s successful realization of the dual target in containing the Covid-19 pandemic and boosting economic recovery has led to further increase in new business formation by 7.3% month-on-month in November and 6.7% year-on-year to 13,100, according to the General Statistics Office. 

 Vietnam targets to have 138,000 new enterprises this year. Photo: Thanh Hai. 

Notably, this month has witnessed a surge of 72% month-on-month in combined registered capital to VND284.8 trillion (US$12.34 billion) and 65.3% in the number of workers hired by new enterprises to 119,700.

The number of newly-established enterprises in Vietnam in the first eleven months of 2020 was 124,300 with registered capital of a combined VND1,878.9 trillion (US$81.46 billion), down 1.9% in number but up 19.3% in registered capital year-on-year. Average registered capital per newborn enterprise was VND15.1 billion (US$654,695) during this period, up 21.7% year-on-year.

Taking into account VND3,086.9 trillion (US$133.83 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in the January-November period was VND4,965.8 trillion (US$215.28 billion), up 35.1% year-on-year.  

The government-run office informed that 40,800 enterprises resumed operations in the period, an increase of 10.7% inter-annually, bringing the total number of newly-registered and reinstated enterprises in the eleven-month period to 165,100, up 0.9%.

The GSO added that the number of laborers of newly-established enterprises between January and November was 970,000, down 14.7% against the same period last year.

During this period, the number of enterprises temporarily ceasing operations surged 59.7% year-on-year to 44,400.

Moreover, the number of enterprises which completed procedures for bankruptcy rose 3.1% to 15,400.

This year, Vietnam targets to create 138,000 new enterprises, around the same number in 2019, which is considered a major achievement, given the severe impacts of the Covid-19 pandemic to both the global and domestic economies.

Since the outbreak of the Covid-19 pandemic, the Vietnamese government has been implementing a wide range of support for the business community, with the latest move being a cut of 30% in the corporate income tax for enterprises having their revenue of less than VND200 billion (US$8.61 million) in 2020.

Additionally, other supporting programs consist of a credit aid package worth VND300 trillion (US$12.87 billion), including a VND180-trillion (US$7.63 billion) fiscal stimulus package in forms of delay of payment of value-added tax, corporate income tax, and a financial support package for vulnerable people worth VND62 trillion (US$2.7 billion).

TAG: Vietnam business formation newly established enterprises business environment relief package government support covid-19 coronavirus nCoV pandemic
Other news
17:04, 2023/04/27
Hanoi receives almost 5.9 million visitors in January-March
This year, the city's tourism sector has set itself the goal of welcoming three million international visitors, twice as many as in 2022.
14:09, 2023/09/27
Hanoi to establish 10 industrial clusters this year
Hanoi aims to attract $400 million in FDI to its industrial parks and production zones in 2023, a 20% increase from the previous year.
17:10, 2023/10/26
Strengthening links among Vietnamese higher education incubators
A forum to connect members of the Network of Entrepreneurship and Innovation Centers at Universities and Colleges was jointly organized by the National Innovation Center (NIC) and Hue University with the support of USAID and Google Asia-Pacific in the central province of Thua Thien Hue.
14:55, 2023/55/25
Travel enthusiasts flock to Hanoi Tourism Festival 2023
The Hanoi Tourism Festival 2023, which runs from March 24-26 around Hoan Kiem Lake Walking Street, is one of the biggest promotional events in Hanoi.
18:36, 2023/36/22
Vietnamese Gov’t eases regulations on vehicle inspection
As of March 22, brand-new vehicles will be exempt from the initial inspection, and passenger vehicles under seven years old will be inspected every 24 months.
18:32, 2023/32/22
Hanoi partners with Kien Giang to attract tourists to Phu Quoc Island
Located in the southwestern province of Kien Giang, Phu Quoc Island is one of Vietnam's most beautiful coastal towns, identified as an eco-tourism center.