About 230,500 businesses will join the economy in 2024. Illustrative image.
The Department of Business Registration Management, Ministry of Planning and Investment (MPI) reported that the number of newly established businesses in the first month of 2024 reached 13,536, an increase of 24.8% compared to the same period in 2023. The number of businesses joining and re-joining the market in the first month of 2024 reached 27,335, an increase of 5.5% compared to the same period in 2023, more than 1.3 times the average number of businesses joining and re-joining the market in the period 2018-2023 (20,891 businesses).
Previously, the General Statistics Office stated that the number of newly established businesses this year is forecast to increase by 2% compared to 2023, reaching about 162,500.
Along with that, it is expected that about 68,000 businesses will return to operation, up 16%. Therefore, there will be a total of 230,500 businesses joining the economy in 2024.
The forecast is based on the registration status of businesses in 2023 and the prospects of the global and domestic economies in the near future.
According to the General Statistics Office, Vietnam’s economic growth continues its positive recovery trend. Support policies issued in 2023 will have a clearer impact. Investment drivers (private investment, foreign investment, public investment, state-owned enterprises), consumption, tourism, and exports continue to increase.
However, there are still potential risks from the global economic situation, including military conflicts and inflation control in developed countries. Inflation has shown signs of slowing down, but some major economies are forecast to maintain tight monetary control.
Due to the slow and unsustainable recovery of Vietnam’s major trading and investment partners, weak domestic consumption, increasing protectionism, and unfavorable developments in the world and regional forecasts will continue to have a strong impact on Vietnam’s production and business activities, industry, import and export, and investment attraction. Therefore, the number of businesses withdrawing from the market this year is forecast to increase compared to 2023, but at a much slower rate than the period affected by the COVID-19 pandemic. According to the Department of Business Registration Management (Ministry of Planning and Investment), this number is estimated at about 178,000, an increase of 3.5% compared to 2023; in which, besides the temporarily suspended businesses, about 10% will go through dissolution procedures.
To help businesses overcome difficulties, seize opportunities, quickly recover and develop sustainably, creating important momentum for socio-economic development in 2024, the General Statistics Office proposes that the Government, ministries, and sectors focus on implementing a number of solutions.
Specifically, the General Statistics Office proposes that the Government continues to actively and flexibly manage monetary policy, expand reasonable fiscal policies with emphasis and focus and other policies to stabilize the macro economy, support economic growth, stabilize the money market, foreign exchange market, and banking system.
