In the first two months of the year, 22,128 businesses were established in Vietnam, with a combined registered capital of almost 219 trillion Vietnamese Dong ($8.8 billion).

This is according to the Ministry of Planning and Investment’s Business Registration Management Agency.

The latest figures represent a year-on-year rise of 12.4% in the number of new businesses setting up in the country, and a 32.8% increase in capital.

The industries with the steepest rises in newly established businesses were mining, with a 28.8% increase, followed by transport and warehouse with 26.5%, and other services, 21.5%.

Furthermore, a total of 18,969 businesses resumed operations within the first two months of the year. This brings the total number of newly established firms and organisations resuming operations to 41,097, an 8.5% increase from the same time last year, Vietnam Plus reports.

Whereas 62,977 businesses left the market in January and February, a 22.5% year-on-year rise.

In addition, the S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) registered a reading of 50.4 in February, a slight rise from January’s 50.3, and remaining above the 50-level, separating growth from contraction for the second straight month.

Despite there being only a marginal rise in rate of improvement in the index, employment and business confidence both reported an increase. 

Vietnam’s General Statistics Office (GSO) has stressed the need to prioritise enhancing the business environment to facilitate rapid and sustainable growth of businesses.  

The primary emphasis should be on streamlining legal procedures related to investment and business activities to eliminate obstacles, according to the GSO.

Indeed, the State Bank of Vietnam should continue implementing strategies to channel capital towards critical sectors and factors driving growth, the GSO added. This involves eliminating obstacles to expedite VAT refunds for taxpayers, as well as enhancing the effectiveness of the credit guarantee fund for small and medium-sized enterprises (SMEs) as well as the fund for SMEs’ development.