Highlights in first-quarter business picture

Bui Anh Tuan, director general of the Business Registration Management Agency (MPI)

The first quarter of the year is almost over. How does the business picture look so far?

Normal business activities are making a strong comeback.

The first quarter is often the time companies prepare their business plans for the new financial year. The business registration data of the first quarter then reflects quite clearly the operating trends of enterprises during the year.

We have recorded several new records in business registration in this year’s first quarter.

More than 60,000 enterprises either joined or resumed operations during the period, setting a record in the number of enterprises entering and re-entering the market, 1.5 times higher than the average in the first quarters of 2017-2021, and up 36.7 per cent on-year.

What about businesses in the tourism and hospitality industries?

Of the around 60,000 about 25,580 businesses had resumed operation during the period, an increase of 73.6 per cent on-year, setting a new record in the number of firms resuming operation in the first quarter, and 2.1 times higher than the first-quarter average during 2017-2021.

Of these, nearly 1,500 businesses were in the hospitality sector, showing a 105.4-per-cent jump. In the field of education and training, 556 enterprises returned to operation, up 96.5 per cent.

Vietnam's tourism industry has reopened completely, along with loosening entry conditions for international visitors.

This positive picture supports businesses’ recovery and development under the Programme on Socioeconomic Rebound and Development in 2022-2023 that the government implements.

Under guidance from the prime minister, most of the solutions need to finalise legal procedures to become ready for implementation this March, such as the 2 per cent interest rate subsidy package and the package on payment extension for some taxes and fees.

We also noted an 18.1-per-cent jump on-year to 34,590 in the number of newly established businesses, the highest level in the first quarter ever. In Hanoi and Ho Chi Minh City, the number of newly established businesses also prospered.

What areas do new businesses focus on?

A jump in new business setups was reported in 14 out of 17 industries. Leading sectors in this regard were real estate with a 47.2-per-cent jump; healthcare and social assistance activities also went up 39.3 per cent; and transportation and storage rose 32.5 per cent; along with wholesale, retail, and repair of cars and motorbikes which saw a rise of 25.1 per cent and accommodation and catering services, which rose by 22.6 per cent.

The sectors holding the biggest share in the number of new business setups were wholesale; retail; and repair of cars and motorbikes with 12,285 enterprises, accounting for 35.5 per cent; along with the manufacturing industry with 4,534 enterprises, making up 13.1 per cent. The construction sector also had 4,028 new enterprises, accounting for an 11.6-per-cent rise.