Newly Established Business in February 2024 Sees Slight Dip, Still Up Over 12% in Two Months

Despite a slight decrease in the number of newly established businesses in February 2024 compared to the same period, the overall increase in the number of new businesses in the first two months of the year reached 12.4% compared to the same period in 2023.

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According to the Business Registration Management Agency, in February 2024, there were 8.59 thousand newly registered businesses with a total capital of 67.26 trillion VND, a decrease of 2.8% in the number of businesses and an increase of 2.6% in registered capital compared to the same period in 2023.

Although there was a decrease in February 2024, the total number of newly established businesses in the first two months of the year was still higher than 22.12 thousand businesses, an increase of 12.4% compared to the same period in 2023.

Despite the decrease in the number of businesses, the registered capital for establishment in the first two months reached a relatively high level of 218.71 trillion VND, an increase of 32.8% compared to the same period. Combined with the additional registered capital of active businesses, the average registered capital per business in the first two months of 2024 was 9.9 billion VND, an increase of 18.2% compared to the same period in 2023.

Among the 17 economic sectors, according to the Business Registration Management Agency, there were 12 sectors with an increase in the number of newly established businesses, including mining (28.8%), warehousing and storage (26.5%), other services activities (21.5%), wholesale and retail – repair of motor vehicles, motorcycles (20.2%)… The remaining sectors recorded a decrease in the number of newly established businesses, with accommodation and food service activities experiencing the largest decrease with a decrease of 8.7%.

The majority of newly established businesses were small-scale (from 0-10 billion VND) with 20.3 thousand businesses, mainly in the service sector (16.63 thousand businesses) and the industrial sector (5.26 thousand businesses). The agriculture, forestry, and fisheries sector had the fewest number of newly established businesses with 236 businesses, accounting for 1.1% of the total number of newly established businesses.

In terms of regions, 5 out of 6 regions across the country saw an increase in the number of registered businesses compared to the same period in 2023: Central Highlands (629 businesses, an increase of 24.6%); North Central and Northern Mountainous region (1.2 thousand businesses, an increase of 23.5%); Southeast region (9.51 thousand businesses, an increase of 16.8%); Red River Delta region (6.68 thousand businesses, an increase of 9.9%); Mekong River Delta region (1.68 thousand businesses, an increase of 8.4%). The North Central Coast and Central Coast region recorded a decrease in the number of registered businesses compared to the same period in 2023 (2.43 thousand businesses, a decrease of 0.2%).

Regarding businesses returning to operation, according to the Business Registration Management Agency, in February 2024, there were 5.34 thousand businesses returning to operation, an increase of 36% compared to the same period in 2023. In the first two months, the total number of businesses returning to operation was 18.97 thousand businesses, an increase of 4.4% compared to the same period in 2023.

The real estate business sector had the highest increase in the number of businesses returning to operation (38.7%, 843 businesses), followed by information and communication (19.7% and 449 businesses), and manufacturing industry (14.4% and 2,210 businesses)…

Regarding businesses withdrawing from the market, the trend of increase continued in February 2024 with over 5.14 thousand businesses temporarily suspended (an increase of 35.3% compared to the same period), 2.15 thousand businesses awaiting dissolution procedures (a decrease of 18.3%), and 1.5 thousand businesses dissolved, ceased to exist (an increase of 29%).

With the upward trend in February 2024, the total number of businesses withdrawing from the market in the first two months increased by 22.5% compared to the same period (62.98 thousand businesses), including 49.27 thousand businesses temporarily suspended (an increase of 27.1% compared to the same period), 10.03 thousand businesses awaiting dissolution procedures (an increase of 6.5%), and 3.67 thousand dissolved businesses (an increase of 14.5%).

SOURCEvneconomy
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