The Department of Business Registration Management, Ministry of Planning and Investment said that the number of enterprises entering and re-entering the market in the first month of 2024 reached 27,335 enterprises, an increase of 5.5% over the same period in 2023, more than 1.3 times the average number of enterprises entering and re-entering the market in the period 2018-2023 (20,891 enterprises).

Specifically, the number of newly established enterprises in the first month of 2024 reached 13,536 enterprises, an increase of 24.8% over the same period in 2023. This is the highest number of enterprises entering the market in the first month of the year ever, 1.3 times higher than the average number of newly established enterprises in January in the period 2018-2023 (10,522 enterprises). This figure increased by 24.8% over the same period in 2023.

The second bright spot is that the average registered capital of enterprises continues to recover from November 2023, reaching VND 11.2 billion/enterprise, up 22.4% over the same period in 2023.

This partly shows that the Government's policies to help businesses unlock capital sources from the second half of 2023 will continue to be effective, increasing businesses' confidence when deciding to invest in production and business.

The total registered capital added to the economy in January 2024 was VND 370,101 billion (down 2.1% over the same period in 2023). Of which, the registered capital of newly established enterprises was VND 151,451 billion (up 52.8% over the same period in 2023).

People come to do procedures at the Business Registration Office (Hanoi Department of Planning and Investment). Photo: Manh Khanh/VNA

However, the data also recorded that the number of enterprises temporarily suspending business in January 2024 reached 43,925, an increase of 25.5% over the same period in 2023 and the highest level in the first month of the year ever. Including enterprises waiting for dissolution procedures, in January 2024, there were 53,888 enterprises withdrawing from the market, an increase of 22.8% over the same period in 2023.

Although January is the time when the number of businesses temporarily suspending business for a period of time is often higher than in other months of the year because businesses often choose to suspend at the beginning of the fiscal year. However, the Department of Business Registration Management believes that difficulties and challenges for businesses from 2023 still exist.

The number of enterprises returning to operation in January 2024 was 13,799, down 8.4% over the same period in 2023.

The number of businesses returning to operation increased in 6/17 sectors, specifically: real estate business had 645 businesses, up 29.3%; Information and communication had 355 businesses, up 11.6%; Processing and manufacturing industry had 1,758 businesses, up 6.9%; agriculture, forestry and fishery had 216 businesses, up 5.9%...

The total number of registered employees of newly established enterprises in January 2024 increased sharply, up 50.8% over the same period in 2023 and 31.8% over December 2023.

Mr. Ha Manh Cuong, Director of Hamakyu Co., Ltd., acknowledged that many opportunities are opening up for businesses; including opportunities to expand markets through free trade agreements such as CPTPP, EVFTA, etc. Therefore, ministries, branches and localities need to actively support the business community to take advantage of commitments in signed FTAs, accelerate the signing of FTAs ​​under negotiation and research new markets to boost exports; at the same time, warn and update the latest information on trade defense measures, new standards and techniques of export partners. Effectively implement domestic market trade promotion programs, especially through digital platforms and e-commerce.

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, optimistically stated that the Vietnamese textile and garment industry will establish a recovery trend, with the expectation that export turnover in 2024 will reach 44 billion USD, an increase of 9.2% compared to 2023.

Recently, many large technology corporations have, are and will continue to invest in Vietnam, especially in the semiconductor industry. Globely News (USA) commented that Vietnam has great potential to become the next Asian tiger. The International Monetary Fund (IMF) forecasts that Vietnam will rank 20th in the list of fastest growing economies in the world in 2024...

For the semiconductor industry, Vietnam has advantages in population size, investment participation of many leading corporations in the world (Samsung, LG, Foxconn, Panasonic, Canon...); has comprehensive strategic partnerships with semiconductor powerhouses such as the United States, South Korea, Japan, which are favorable conditions for the semiconductor chip industry market.

From these factors, representatives of the state management agency for business registration said that we can hope for positive signals in business registration activities in 2024.

In order to develop and strongly stimulate the entrepreneurial spirit to welcome the new wave of investment in high-tech industrial fields, Ms. Nguyen Thi Viet Anh, Deputy Director of the Department of Business Registration Management, said that currently, there are many investment funds approaching the Vietnamese market, but Vietnam still lacks enterprises that meet standards in governance, transparency in product quality, poor connectivity, and lack of skills to turn their products into strengths to attract the attention of investment funds.

“Therefore, businesses need to focus on improving management capacity, product quality and making changes in all stages from production to consumption to meet the requirements and trends of domestic and foreign markets,” Deputy Director Nguyen Thi Viet Anh emphasized.

However, Mr. Dau Anh Tuan, Deputy General Secretary, Head of Legal Department, Vietnam Federation of Commerce and Industry (VCCI) said that in the context of the market still facing many difficulties and challenges, with decreasing orders, businesses need to reduce business costs. Currently, in many places, many places, the problem of business costs is very high, so solutions to reduce business costs need to be thoroughly promoted, there needs to be a comprehensive solution package for reducing this business cost.

"On the other hand, many businesses feel that when carrying out administrative procedures in localities today, there is a common mentality of stagnation and waiting. Therefore, it is necessary to promote and create a better implementation atmosphere at many levels. To support business development, the Government and the administrative apparatus at all levels must promote and improve the quality of implementation. This is a really important factor in 2024 as well as in the coming time," Mr. Dau Anh Tuan recommended.

The leaders of the Ministry of Planning and Investment proposed that the business community also need to make efforts to implement bold, innovative, creative and modern solutions and directions, seize opportunities, not only to grow themselves but also to contribute to the development of the country; at the same time, proactively innovate production and business models, restructure enterprises; focus on training, improve management capacity and quality of human resources; strongly apply science and technology to turn challenges into opportunities; create new value standards, pay more attention to serving people and domestic needs; expand markets, and move towards participating in the global value chain.

Regarding organizations and business associations, the Ministry of Planning and Investment also proposed that they should proactively research and assess challenges and opportunities of industries and sectors, promptly share, guide, and provide consulting support to member businesses and industries; at the same time, propose to the Government solutions and initiatives to develop businesses and restore the economy...

According to VNA/Tin Tuc Newspaper