Over 22,100 new businesses established in two months

Vietnam witnessed the establishment of 22,128 enterprises in the first two months of the year with combined registered capital of nearly VND219 trillion (US$8.88 billion).

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) is 50.4 in February, up from 50.3 in January. (Photo: nhandan.vn)

According to the Ministry of Planning and Investment’s Business Registration Management Agency, the figures represented a year-on-year increase of 12.4 percent in the number of new businesses, and a rise of 32.8 percent in capital.

Industries with sharp increases in the number of newly-established enterprises included mining (up 28.8 percent), transport and warehouse (26.5 percent), and other services (21.5 percent).

Additionally, 18,969 companies resumed their operations in the January-February period, bringing the total number of newly-established firms and enterprises resuming operations to 41,097, a 8.5 percent rise from the same time in 2023.

Meanwhile, a total of 62,977 businesses withdrew from the market during January – February, up 22.5 percent year-on-year, demonstrating the fact that enterprises have been facing difficulties in business and production.

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) posted 50.4 in February, up from 50.3 in January, and above the 50.0 no-change mark for the second consecutive month.

Experts said the rate of improvement in the sector’s health signaled by the index remained only marginal; however, there was a rise in both employment and business confidence.

According the General Statistics Office, improving business climate should be prioritised with a view to promoting businesses’ fast and sustainable development. The focus should be placed on the removal of bottlenecks in legal procedures for investment and business activities.

Besides, the State Bank of Vietnam should continue measures to gear capital towards priority areas and growth driving forces, remove roadblocks to offer added-value tax refunds to tax payers in a timely manner, and improve the efficiency of the credit guarantee fund for small and medium sized enterprises (SMEs) and the fund for SMEs’ development.

Furthermore, businesses should be urged to promote innovation, digital transformation and green transition towards sustainable development.

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