The number of newly established businesses has reached a record high.

In 2023, despite the large number of businesses leaving the market, the number of new business registrations reached a record high for the first time, nearly 160,000 units.

The Department of Business Registration Management (Ministry of Planning and Investment) assesses that the business registration situation is a bright spot in the overall economic picture of Vietnam this year.

The number of newly registered businesses in 2023 reached 159,294, an increase of 7.2% compared to the same period in 2022, reaching a record high for the first time. The Department considered this figure "impressive," as it was 1.2 times the average for the 2017-2022 period and a 4.6% increase compared to the estimated figure for the whole year of 2023.

The number of businesses resuming operations in 2023 also reached over 58,400. Thus, the number of businesses entering and returning to the market continues to be above 200,000, an increase of 4.5% compared to the same period in 2022 and 1.3 times the number of businesses withdrawing from the market last year.

In fact, in the first quarter, the number of registered businesses decreased but was still 1.02 times higher than the average quarterly level during the 2017-2022 period. In the following quarters, the Government implemented many measures to address difficulties, thanks to which the number of newly registered businesses showed impressive recovery momentum - consistently above 40,000, the highest quarterly level ever. In the fourth quarter, the number of newly established businesses reached nearly 43,000 units, an increase of 20.2%.

Sectors with a significant increase in the number of newly established businesses compared to the same period last year include: Education and training; Wholesale and retail trade; Repair of automobiles and motorcycles; Employment services; and Tourism.

The total registered capital of newly established businesses improved throughout the quarters of the year. However, for the whole year, the total registered capital of newly established businesses only reached over 1.52 trillion VND, a decrease of 4.4%. Overall, the total additional registered capital injected into the economy this year decreased by more than 25%, reaching only over 3.5 trillion VND.

Conversely, 2023 continued to see a large number of businesses withdrawing from the market. In December alone, 14,355 businesses nationwide withdrew, an increase of over 26% compared to the previous year. For the whole year, this number reached 172,500 businesses, a 20.5% increase. This is also the highest number since 2017.

Nevertheless, more than half of these businesses chose to temporarily suspend operations in the short term. Only about 10% went through the dissolution process, actually ceasing operations and leaving the market. The main reasons cited by businesses for dissolution were inefficient production and business operations, decreased orders; volatile market conditions that the company's organizational structure could not adapt to; and other difficulties such as lack of capital and rising input costs.

Duc Minh

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