A record number of enterprises entering and re-entering the market: A strong recovery of Vietnamese enterprises?
In the first quarter of 2022, 60,178 enterprises entered and re-entered the market and this has been the highest number of enterprises entering and re-entering the market in Q1 so far, as said by Mr. Bui Anh Tuan, Director General of the Agency for Business Registration, Ministry of Planning and Investment. This figure partly shows that the trust of the business community has gradually returned after two years of the Covid-19 pandemic.
Mr. Bui Anh Tuan, Director General of the Agency for Business Registration
The figures seem to reflect initial positive results of the policies supporting people and businesses which meet the demands of the business community and people. Could you be more specific on this?
The economy is showing signs of improvement in the first quarter of 2022 in the context of the urgent implementation of the policies supporting people and business, especially the Government’s Resolution No. 11/NQ-CP on the socio-economic recovery and development program and the implementation of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies supporting such program.
The groups of solutions proposed in the Government’s Resolution 11/NQ-CP are considered by the business community as quite comprehensive, positive, helping businesses recover, basically meeting the demands of the business community and people, as well as demonstrating the strong determination of the National Assembly and the Government in helping the country’s economy overcome difficulties and challenges for recovery and development.
Localities across the country have gradually and proactively adapted to the new situation to flexibly and effectively implement a dual-target strategy, preventing and combating Covid-19, while recovering and developing socio-economic and at the same time, effectively implementing the spring 2022 vaccination campaign. In addition, Vietnam’s tourism industry has reopened with the policy of easy entry conditions for international visitors. This is likely to bring out positive impacts on the economy after a long period of the pandemic.
The First Quarter of each year is usually the time when businesses plan their business for a new fiscal year. Along with that, the intensification of the Government's recent policies on economic recovery and development has contributed to portraying business registration in the first quarter of 2022 with vibrant colors.
In particular, the outstanding number is 60,178 enterprises entering and re-entering the market, a record high number in this regard in the first quarter so far, 1.5 times higher than the average in the first quarter of 2017-2021, an increase of 36.7% over the first quarter of 2021. This somehow shows that the trust of the business community has gradually returned after two years of the covid-19 pandemic.
In addition to the impressive number of enterprises entering and re-entering the market in this quarter, what do you think about other signs that show the recovery and strong growth of enterprises in our country?
Vietnamese enterprises are indeed experiencing strong developments again. In addition to the impressive number of market entry and re-entry, the development is also reflected in the number of newly-established enterprises and the number of dissolved and terminated enterprises in the first quarter of 2022.
The number of newly-established enterprises in the first quarter of 2022 was 34.590, an increase of 18.1% over the same period in 2021 and the highest level in the first quarter so far. The increase in the number of newly registered businesses demonstrates the efforts and entrepreneurship of the business community and shows that many new business opportunities have appeared and many others will continue to emerge.
In some localities, the business registration situation has also improved significantly such as: In Ho Chi Minh City, the number of registered enterprises increased by 24.1% compared to the same period in 2021. Even in Hanoi, the locality that currently has the highest number of Covid-19 cases in the country, the number of registered enterprises also increased by 6.6% compared to the same period in 2021.
In addition, the number of dissolved and terminated enterprises in the first quarter of 2022 was 4.335 enterprises, down 16.7% compared to the same period in 2021. 17/17 major business sectors with the number of terminated enterprises dissolved decreased shows that the “business health” has improved remarkably, and enterprises has found better business opportunities to continue production and business activities.
How was business registration in March, when the number of Covid-19 daily cases reached its peak of the recent wave?
As we all know, in March, the number of Covid-19 cases continuously increased and reached the highest level ever. However, 18,602 enterprises were entering and re-entering the market, three times the number of enterprises withdrawing from the market. In particular, the number of newly-established enterprises and the amount of newly registered capital have both increased impressively compared to the same period in 2021. Specifically, the number of newly registered enterprises in March 2022 was 14,302 enterprises, with registered capital of VND 193,647 billion, an increase of 28,0% in the number of enterprises and an increase of 71.3% in registered capital compared to the same period in 2021. Remarkably, this is the highest level of newly established enterprises since May 2021. I assume that Vietnamese enterprises have regained their status in the direction of adapting flexibly and proactively to the new situation, based on the ability to innovate and to see ongoing and future business opportunities.
Thank you very much,