Business formations in Vietnam rise 7.3pct m/m in November

02-Dec-2020 Intellasia | Hanoi Times | 6:02 AM Print This Post

The total number of newly-registered and reinstated enterprises in the eleven-month period reached 165,100, up 0.9 percent year-on-year, averaging 15,000 per month.

Vietnam’s successful realisation 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 percent month-on-month in November and 6.7 percent year-on-year to 13,100, according to the General Statistical Office.

Notably, this month has witnessed a surge of 72 percent month-on-month in combined registered capital to VND284.8 trillion (US$12.34 billion) and 65.3 percent 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 percent in number but up 19.3 percent 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 percent 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 percent year-on-year.

The government-run office informed that 40,800 enterprises resumed operations in the period, an increase of 10.7 percent 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 labourers of newly-established enterprises between January and November was 970,000, down 14.7 percent against the same period last year.

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

Moreover, the number of enterprises which completed procedures for bankruptcy rose 3.1 percent 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 percent in the corporate income tax for enterprises having their revenue of less than VND200 billion (US$8.61 million) in 2020.

Additionally, other supporting programmes 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).


Category: Business, Vietnam

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