After a year of economic hardship caused by the pandemic, recovery was very close in April 2022, with a record number of new business registrations. The number of businesses entering and re-entering the market significantly outpaced the number of businesses exiting. The rate of businesses temporarily ceasing operations and dissolving decreased sharply.
New business registrations reached 15.001.
In April 2022, the Business Registration Management Department (Ministry of Planning and Investment) recorded a record 15.001 newly registered businesses. This became the highest-registered month in Vietnam's history in terms of the number of new businesses established.
This figure is significantly higher than the average number of newly registered businesses, which was 13.043 during the same April period from 2017 to 2021. In addition, the number of registered employees of businesses also increased by 10,7% compared to the same period in 2021, reaching 104.757 people. During the month, the number of businesses resuming operations also increased by 22.4%, reaching 7.034 businesses compared to the same period in 2021.
In total, during the first four months of 2022, 30.919 businesses resumed operations, a 60,6% increase compared to the same period in 2021. This is also a record number for the first four months of the year – more than double the average of 15.506 businesses re-entering the market during the first four months of the 2017-2021 period.
According to statistics for the first four months of the year, the highest number of businesses resuming operations were in the following sectors: Wholesale, retail, and repair of automobiles and motorcycles, accounting for 38.6% (11.945/30.919 businesses); Construction, accounting for 12,2% (3.784/30.919 businesses); and Manufacturing, accounting for 11,2% (3.448/30.919 businesses).
In positive terms, the number of businesses withdrawing from the market was 10.380, a decrease of 11,6% compared to the same period in 2021. The number of businesses dissolving or awaiting dissolution procedures also decreased sharply compared to the same period last year.
Economic recovery is very close.
The European Chamber of Commerce in Vietnam (EuroCham) has stated that "recovery is very close." This assessment is based on Vietnam's business environment index reaching 73%, a 12% increase compared to the fourth quarter of 2021. This is also the highest level since the fourth wave of the pandemic, and the upward trend is expected to continue in the coming period.
The excitement was most evident in businesses in the tourism and service sectors, following the decision to restore international flights and fully reopen international tourism last March. Businesses resuming operations and establishing new businesses saw a significant increase in April.
According to the survey, 82,3% of businesses believe their production and business situation is improving or remaining stable (50,0% improving, 32,3% remaining stable), while the percentage of businesses forecasting more difficulties has decreased to 17,7%. Nearly 66% of survey participants expect revenue to increase in the second quarter of the year, compared to 52% in the previous quarter. Similarly, more than 46% of respondents predict an increase in the number of employees in the next quarter.
