I. Business registration update in March 2018
In March 2014, there were 8.082 newly established enterprises with registered capital of 81.156 billion dong, increasing by 2,8% in the number of enterprises and decreasing 18,0% in registered capital compared to previous month. Comparison between February and March 2018, the propotion of registered capital per an enterprise in March was reached 10 billion dong, decreasing by 20,3% and the registered labor was expected to reach 68.979 million labors, decreasing by 3,0%.
Also in month, there were 1.801 enterprises resumed operation after suspension, decreasing by22,3% compared to February 2018 (2.319 enterprises).
Chart No.1. Business registration comparision
Regarding the cases of dissolution and suspension between March and February 2018, the above comparision chart demonstrates that there were 1.137 enterprises already registered for suspension, down 57,5%; 2.446 others suspended without fulfilling taxation obligation, up 57,3% and 792 enterprises completed dissolution procedures, down 18,8%.
II. Business registration update in the first quarter of 2018
In the 1st quarter of 2018, the internal economy have supplied totally 35.234 enterprises, of which 26.785 newly established enterprises and 8.449 enterprises resumed operation after suspension.
The estimated amount of registered capital in this quarter was about 763.964 billion dong, consists of 278.489 billion dong from newly established enterprises and 485.475 billion dong from 7.893 turns of amendment registration enterprises for suppliment capital.
Business registration update by newly established enterprise case:
- In general:
In the 1st quarter of 2014, there were 26.785 newly established enterprises with registered capital of 278.489 billion dong, increasing by 1,2% in the number of enterprises and 2,7% in registered capital compared to the same period last year.
Chart No.2. Business registration update by quarter
The comparision chart No.2 indicates the top line growth of both newly established enterprises and registered capital in 1st quarter from 2015 to 2018. In comparision with the 1st quarter of 2015, the amount of newly established enterprises, registered capital and the proportion of registered capital per an enterprise in 1st quarter of 2018 both increased by 1,4; 2,5 and 1,8 times respectively.
The proportion of registered capital per an enterprise in the first three months of 2018 was reached 10,4 billion dong, increasing by 1,5% compared to the same period last year.
The registered labor was expected to reach 225.389 million labors, decreasing by 22,7% compared to the same period of 2018.
On the other hand, among 26.785 newly established enterprises in the first three months of 2018, there were 55 suspended enterprises (0,21%); 26 enterprises completed dissolution procedures (0,1%); 95 others suspended without fulfilling taxation obligation; thus there were 26.609 active enterprises, accounting for 99,34% of newly established enterprises in this period.
- By registered capital scale:
Table No. 1. Business registration update by registered capital scale (unit: enterprise)
Statistics from Table No.1 show that the entire of registered capital scales in the first three years of 2018 both had rate of newly established enterprises growth, namely: registered capital scale from 50 billion to 100 billion dong had highest growth rate 15,6 % (318 enterprise); following by registered capital scale from 20 billion to 50 billion dong with 745 enterprises, up 7,8%. The registered capital scale under 10 billion dong had the lowest growth rate (up 0,7%) but accounting for 90% of newly established enterprises (24.074 enterprises).
- By enterprise types
Table No. 2. Business registration update by enterprise types
The comparision result between the first three months of 2018 with the same period last year from table No.2 shows that One-member LLC was decreased in registered capital and registered labors; Two-member LLC and Private Enterprise were decreased in newly established enterprise, registered capital and registered labor; on the contrary, Partnership Company was increased in both three elements.
Considering the increase in business registration over the same period in 2017, the result from table No.2 also shows that in the first three months of 2018:
The number of newly established enterprise was mainly focused on One-member LLC with 15.861 enterprises (up 6,0%);
The volumn of registered capital was focused on Shareholding Company with 138.383 billion dong (up 12,0%);
On the other hand, most of enterprise types had the reduction rate of registered labor (except Partnership Company), One-member LLC had the highest reduction rate 56,0% with 1.968 labors.
- By regions:
Table No. 3. Business registration update by regions
The comparision result between the first three months of 2018 with the same period last year from table No.3 shows that Red river delta was decreased in the number of newly established enterprise and registered labor; North Central and Central Coastal was decreased in the volumn of registered capital and the number of registered labor; South East area and Mekong river delta was decreased only in the number of registered labor. Northern midlands and mountainous are and Tay Nguyen were both decreased in three elements. Specifically:
Relating to the number of newly established enterprise, South East area had the highest number of supplemental enterprises to the market with 11.459 enterprises (42,8%); following by Red river delta with 7.737 enterprises (28,9%); oppositely, Northern midlands and mountainous area and Tay nguyen had the lowest newly established enterprises with 1.146 enterprises (4,3%) and 655 enterprises (2,4%) respectively.
Regarding to the registered capital, South East area continued to take the lead with 131,781 billion dong, accounting for 47.3%; second place is Red River Delta with 74.777 billion dong, accounting for 26.9%; North Central and Central Coastal had 36.088 billion dong, accounting for 13.0%; Mekong river delta had 19.644 billion dong, accounting for 7.1%; Northern Midlands and Mountains had 12.115 billion dong, accounting for 4.4% and Tay Nguyen had 4.084 billion dong, accounting for 1.5%. Regarding the propotion of registered capital per an enterprise, in the first three months, South East area was reached 11.5 billion dong / enterprise; Northern Midlands and Mountains reached 10.6 billion dong / enterprise; Red river delta, North Central Coast and Central Coast was both reached 9.7 billion dong per enterprise; Mekong river delta reached 9.5 billion dong / enterprise and Tay Nguyen was reached only 6.2 billion dong/ enterprise.
In the first three months of 2018, the registered labors were concentrated in Red river delta with 79.135 labor (35,1%); Tay Nguyen had the lowest amount of registered labor with only 4.599 labors (2,0%). Regarding the average rate of registered labor per enterprise, Mekong river delta was 12.7 labors/enterprise; Northern Midlands and Mountains was 13.2 labors/enterprise; Red river delta was 10.2 l labors/enterprise; North Central and Central Coast was 9.6 labors/enterprise; Tay Nguyen was 7.0 labor/enterprise and South East was 5.6 labors/enterprise.
- By business activities:
Table No. 4. Business registration update by busisness activities
Structuring by business activities, in the first three months of 2018, some business activities were had the relatively large fluctuation in new established enterprises compared to the same period last year as follow:
The newly established enterprises was concentrated on some typical fieds such as: Wholesale And Retail Trade; Repair Of Automobiles, Motorbikes And Other Motor Vehicles (9.218 enterprises, accounting for 34,4%); Construction (3.599 enterprises, 13,4%); Manufacturing (3.265 enterprises, 12,2%); Professional, Scientific And Technical Activities (2.022 enterprises, 7,5%). Taking a look at the amount and growth rate, it shows that Wholesale And Retail Trade; Repair Of Automobiles, Motorbikes And Other Motor Vehicles had the highest amount of newly established enteprises but Real Estate Activities had the highest-ranking in growth rate (32,7%) compared to the same peridod of 2017.
Regarding to the amount of registered capital, Real Estate Activities was continued take the lead with 79.153 billion dong, accounting for 28,4%; besides, regarding to the average propotion of registered capital per an enterprise in the first three month of 2018, Manufacture And Distribution Of Electricity, Gaseous Fuels, Hot Water, Steam And Air Conditioning was reached the topmost propotion (83 billion dong per enterprise).
Related to the registered labor, some business activities was attacted most people such as: Manufacturing (78.422 labors, accounting for 34,8%); Wholesale And Retail Trade; Repair Of Automobiles, Motorbikes And Other Motor Vehicles (49.712 labors, 22,1%), Construction (24.771 labors, 11,0%). Regarding the average rate of registered labor per enterprise, Manufacturing was had the highest rate with 24 labors per enterpises, following by Agriculture, Forestry And Fishing (14,6 labors/ent), Manufacture And Distribution Of Electricity, Gaseous Fuels, Hot Water, Steam And Air Conditioning (13,1 labors/ent). As this result, Manufacturing was take advantage of quantity and average rate of registered labor per enterprise but decreasing by 38,1% compared to the same period of 2017.
APPENDIX: BUSINESS REGISTRATION UPDATE BY REGIONS IN THE FIRST THREE MONTH OF 2018
Dang Tien Dat
Agency for Business Registration