Newly established small businesses increase by 3.5 percent y-o-y
According to the latest data announced by the General Statistics Office, from the beginning of the year to the end of November 2023, roughly 201,500 new businesses were started in 2023, an increase of 3.5 percent compared to the same period last year.
In the same period, around 158,800 businesses were withdrawing from the market, an increase of 20 percent over the same period last year. The average registered capital of newly established enterprises in the first 11 months of 2023 reached VND9.4 billion (US$ 387,559), down 13.1 percent over the same period last year. The total registered capital added to the economy in the first 11 months of 2023 reached VND3.15 trillion, down 29.4 percent over the same period last year.
As the country has not achieved the target of 1 million businesses in 2020, the target of 1.5 million businesses in 2025 also seems quite difficult. Moreover, the country has not obtained the target of the total number of registered firms with limited liability per 1,000 working-age people. Business resilience is still fragile, and the business environment is still not as good as expectations.
The motto of not criminalizing business relations has been consistently affirmed by the Party and the State. The most recent resolution 41-NQ/TW on building and developing a team of entrepreneurs in the new era once again affirmed that the government will protect legal property rights for starting a business and adding appropriate economic sanctions to handle violations.
However, the National Assembly committees’ recent supervision on the promulgation of legal documents have clearly shown that on average each law has 45 guiding documents, including 34 circulars and 11 decrees. Laws remain unchanged, but instructions frequently change, and there are even conflicts between relevant state management agencies, creating huge legal risks for businesses. Therefore, it is necessary to consider limiting cases where ministries are issued circulars.
