31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / News / Viet Nam
Business formations in Vietnam surge 36% m/m in May
Hai Yen 14:32, 2020/05/30
The number of newly established enterprises in Vietnam in the first five months of 2020, however, was down 10.5% year-on-year to 48,300.

The end of the social distancing orders, along with effective support programs from the Vietnamese government, have directly contributed to a surge of 36.1% month-on-month in new business formations to 10,728 in May, according to the General Statistics Office. 

 Data: GSO. Chart: Hai Yen. 

This month also witnessed sharp increases of 20.1% month-on-month in combined registered capital of VND112.7 trillion (US$4.83 billion) and 27% in the number of workers employede by new enterprises at 91.500.

However, the number of newly-established enterprises in Vietnam in the first five months of 2020 was 48,300 with registered capital of a combined VND557.9 trillion (US$23.91 billion), down 10.5% in number and 16.7% in registered capital year-on-year. Average registered capital per newly-established enterprise was VND11.5 billion (US$492,930) during this period, down 6.9% year-on-year.

Taking into account VND817.4 trillion (US$35.03 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in the January-May period was VND1,375.3 trillion (US$58.95 billion), down 17% year-on-year.  

Among economic sectors, only electricity, gas and water production and distribution, and the sector of agro-forestry-fishery saw increases in the number of fresh enterprises with 928 and 794, respectively, up 95% and 5.6% year-on-year.

Meanwhile, most of the newly-established enterprises are in the fields of wholesale, retail, automobile repair with 16,335 enterprises, down 7.3% year-on-year. New businesses in the construction sector totaled 6,440, down 9.8%; followed by manufacturing and processing (6,223, down 9.1%); science, technology, consultancy, design, advertising and others (4,403, down 1.8%), among others.

The government-run office informed that 21,700 enterprises resumed operations, an increase of 10.5% against the similar period last year, bringing the total number of newly-registered and reinstated enterprises in the five-month period to 70,000.

The GSO added that the number of laborers of newly-established enterprises between January and May was 407,200, down 24.2% against the same period last year.

During this period, the number of enterprises temporarily ceasing operations surged 36.4% year-on-year to 26,000.

Moreover, the number of enterprises which completed procedures for bankruptcy was down 4.8% to 6,100, of which 5,400 enterprises had a capital base of less than VND10 billion (US$429,700).

TAG: Vietnam covid-19 coronavirus nCoV pandemic May business formation newly established enterprises bankruptcy suspension gso statistics
Other news
22:16, 2022/16/15
The Association of Vietnamese in Malta established
The Association of Vietnamese in Malta will contribute to developing friendship and cooperation between the two countries.
14:20, 2022/20/15
Vietnam Airlines Group to increase service in upcoming Tet
The group has prepared pilots, flight attendants, aircraft as well as personnel and equipment as early as possible to ensure the best quality of service for passengers during the peak time of Tet holiday.
20:03, 2022/03/14
PM thanks Russian scientists for preservation of President Ho’s embalmed body
Russian experts have joined the preservation of President Ho Chi Minh’s body for over 50 years since he passed away in 1969.
15:38, 2022/38/12
Vietnam, UN accelerate Sustainable Development Goals in 5-year cooperation
The new cooperation agreement will help Vietnam accelerate the progress of the Sustainable Development Goals.
20:55, 2022/55/11
Vietnam works with some European countries for new passports
Vietnamese authorities have realized that the birthplace-omitted passports have troubled other countries’ immigration work.
10:48, 2022/48/10
Vietnam seeks ways to boost competitiveness of tourism
Vietnam strives to restore tourism back to the state of 2019 before the Covid-19 pandemic broke out.