The number of new and reopened enterprises has reached an all-time high

DNHN - According to the Business Registration Administration (Ministry of Planning and Investment), newly founded and returning firms maintained a historic high level in the first eight months of this year, with 149,451 enterprises, up 31.1% from the same time in 2021.

The number of newly founded firms in the first eight months of 2022 was 101,325 out of a total of 149,451 newly established and re-operated enterprises, a 24.2% increase over the same time in 2021. With 48,126 firms, the number of enterprises returning to operation in the first eight months of 2022 climbed by 48.3% over the same time in 2021. Thus, the number of businesses that reopened in the first eight months of this year was larger than the number of businesses that reopened in the previous year.

The total amount of additionally registered capital into the economy in the first eight months of 2022 increased by 36.1% over the same period in 2021 (3,638 million billion VND), with newly established enterprise registered capital increasing by 0.3% (1,136 million dongs) and additionally registered capital increasing by 62.6% over the same period (2,502 million dongs).

There were 11,918 newly registered enterprises with a registered capital of 130,198 billion VND in August 2022 alone, a 106.9% increase in the number of businesses and a 91.6% increase in registered capital over the same month in 2021. With 6,458 firms returning to operation, the number of businesses returning to operation is the greatest ever, up 67.1% from the same period in 2021.

The major reason for the large rise in the rate of newly founded companies compared to the same period last year is that many communities had to apply social distancing in August 2021, when the COVID-19 pandemic was complicated. Production and commercial operations, as well as freight transit, are disrupted or halted. Businesses are currently seeing several business prospects and expanding production to fulfil market demand.

Accommodation and catering services (up 51.7%), other service activities (up 50.8%), employment services, tourism, leasing of machinery and equipment, furnishings and other supporting services (up 43.6%), arts, amusement and entertainment (up 37.0%)...

On the other hand, 104,317 enterprises were forced to withdraw from the market in the first eight months of 2022, a 22% increase over the same period in 2021; the majority of enterprises chose to suspend their operations in the short term (59,609 enterprises, accounting for 57.1% of total enterprises withdrawing from the market in the first eight months of 2022).

The Commercial Registration Administration argues that, while the picture of firms has many bright spots, the reality indicates that the COVID-19 outbreak has weakened the strength of many businesses, making cash flow for business operations difficult.

The average registered capital per firm in August 2022 declined by 26.1% compared to January 2022, indicating a declining trend in the capital size of new enterprises entering the market. This amount is 20.8% lower than the average registered capital of newly founded businesses in 2021 and 34.2% lower than the figure in 2020. As a result, the process reflects the cautious attitude of businesses. deploy resources in manufacturing and commercial activities while facing financial access challenges

Many industrial firms have recommended that the government continue to direct the simplicity and openness of customs procedures to minimize costs and boost predictability for businesses. Build and utilize systems for electronic data interchange between enterprises, customs, and relevant authorities quickly; allow topics with a high level of compliance...

Ms Nguyen Thi Huong, General Director of the General Statistics Office, urged that ministries and branches continue to secure enough supply of raw materials and energy to satisfy production and business recovery requirements. as well as socioeconomic development Remove challenges and obstructions to major industrial initiatives as soon as possible. Simultaneously, utmost support for manufacturers to sustain and recover production to preserve orders and supply chains.

PV