Statistics from the Department of Business Registration (Ministry of Planning and Investment) show that in February 2021, there were 8,038 newly-established businesses with a total registered capital of 179,737 VND billion, a decrease of 12.3% in the number of enterprises and an increase of 85.6 % in registered capital compared to the same period in 2020. During this pandemic period, this growth is still considered positive for the Vietnam market.
11 out of 17 industries have an increase in the number of newly registered businesses, which are in electricity, water, and gas production and distribution with an increase of 60.7%; health care and social assistance (39% growth); real estate (33.6% growth); agriculture, forestry, and fishery (19.2% growth) and mining (19% growth).
According to the Business Registration Administration, the high rate of business growth in these sectors is because they are essential industries. Also, the latest market trend is moving away from sectors that have been severely impacted by the pandemic and into those with less risk and greater opportunities, such as real estate. Due to the free trade agreements and the trend of changing global supply chains, industrial real estate is the trending spot to attract foreign investments.
Image Source: vneconomy.vn
On the other hand, 33,611 businesses withdrew from the market, 18.6% up from the same period in 2020. Among them, 21,636 businesses registered to suspend operations for an indefinite period, 8,380 businesses temporarily suspending operations and awaiting dissolution, and 3,595 businesses completing dissolution procedures.
The Business Registration Administration emphasized that the impact of the epidemic on the economy is still persistent, reflected in the large number of businesses exiting the market, especially in tourism-related industries and other related service businesses.
As a result, many businesses postpone the operation but keep analyzing the market trends and finding new strategies. Business owners in this time also rely on the government’s policies in order to maintain their operation to get through difficulties.
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