Despite the Covid-19 resurgence in July, new business formations in August increased by 1.5% month-on-month to 13,400, according to the General Statistics Office. 

Data: GSO. Chart: Ngoc Mai.

This month also witnessed sharp increases of 20.7% month-on-month in combined registered capital of VND288.8 trillion (US$12.46 billion) and 5.4% in the number of workers hired by new enterprises at 96,300.

The number of newly-established enterprises in Vietnam in the first eight months of 2020 was 88,700 with registered capital of a combined VND1,225.2 trillion (US$52.88 billion), down 2% in number but up 6.5% in registered capital year-on-year. Average registered capital per newly-established enterprise was VND13.8 billion (US$595,687) during this period, up 8.7% year-on-year.

Taking into account VND1,993.2 trillion (US$86.03 billion) of additional capital pumped by active enterprises, total registered capital injected into the economy in the January-August period was VND3,218.4 trillion (US$138.92 billion), up 16.8% year-on-year.  

Most of the newly-established enterprises operate in the field of services with 60,600 enterprises, down 6.3%; followed by wholesale, retail, automobile repair with 29,300, down 0.7% year-on-year. New businesses in the construction sector totaled 26,300, up 7.7%; manufacturing and processing (11,100, down 3.2%); science, technology, consultancy, design, advertising and others (7,724, up 1.9%), among others.

The government-run office informed that 32,600 enterprises resumed operations in the period, an increase of 27.9% inter-annually, bringing the total number of newly-registered and reinstated enterprises in the eight-month period to 121,300, up 4.5%.

The GSO added that the number of laborers of newly-established enterprises between January and August was 694,900, down 2% against the same period last year.

During this period, the number of enterprises temporarily ceasing operations surged 70.8% year-on-year to 34,300.

Moreover, the number of enterprises which completed procedures for bankruptcy was down 1.9% to 10,400, of which 9,200 enterprises had a capital base of less than VND10 billion (US$429,700), down 3.8%.