In April 2024, statistics from the General Statistics Office show that 15.3 thousand new businesses were registered in Vietnam, with a total registered capital of 175.8 trillion VND (approximately 7.5 billion USD). In comparison to the same period in 2023, this represents a 4.1% decrease in the number of businesses but a 13.7% increase in registered capital. Notably, when compared to March 2024, the number of new businesses registered in April 2024 increased by 8.4 %.
Since the COVID-19 pandemic was brought under control and business operations have gradually returned to normal, the number of newly established businesses has remained consistently high during the first four months of 2024. With the addition of 15.3 thousand new businesses in April 2024, the total number of businesses established in the first four months of 2024 has reached 51.55 thousand. This surpasses the average of the past two years and marks the highest number of newly established businesses on record.
However, while the average registered capital per business has increased, it has not yet returned to its previous level of 12.8 billion VND (the average for the period 2019-2022). This indicates that businesses remain cautious about investing in production and business operations.
April 2024 also saw 8.3 thousand businesses resume operations, a 13.6% decrease compared to the same period in 2023. This brings the total number of businesses resuming operations during the first four months of 2024 to 29.7 thousand, a 2.4% increase from the same period in 2023. This indicator continues to show a recovery in business activities post-COVID-19, with the number of businesses resuming operations in this period reaching nearly 30 thousand, compared to an average of 18 thousand during the 2019-2022 period.
Considering both newly registered and reactivated businesses, the total number of businesses entering or re-entering the market in the first four months of 2024 stands at 81.3 thousand, a 3% increase compared to the same period last year. On average, 20.3 thousand businesses were established or resumed operations each month.
By economic sector, in the first four months of the year, 507 new enterprises were established in the agriculture, forestry, and fishery sector, a 1.2% increase compared to the same period last year; 12.5 thousand enterprises in the industrial and construction sector, a 4% increase; and 38.6 thousand enterprises in the service sector, a 3.2% increase.
According to the General Statistics Office, 7.6 thousand businesses registered for temporary suspension of business operations with a specific duration in April 2024, an increase of 84.1% compared to the previous month and 6.4% compared to the same period in 2023. Furthermore, 4.65 thousand businesses ceased operations pending the completion of dissolution procedures, a decrease of 6.5% and 20.2%, respectively; and 1.34 thousand businesses completed the dissolution procedures, a decrease of 4.8% and 109%.
In the first four months of 2024, a total of 60.9 thousand enterprises temporarily suspended their business operations with a specific duration, a 21.9% increase compared to the same period last year; 19.1 thousand enterprises ceased operations pending the completion of dissolution procedures, a 9% decrease; and 6.4 thousand enterprises completed the dissolution procedures, a 4.9% increase. On average, 21.6 thousand businesses exited the market each month.
The number of businesses exiting the market remains higher than the number of new businesses being established and reactivated. This suggests that businesses in Vietnam are still facing challenges in their production and business operations.
